The government have announced that the temporary insolvency measures, first introduced in June 2020, will be lifted on 1 October 2021, with some specific new restrictions put in place to protect small businesses and commercial tenants.
The new measures, which will be in force until 31 March 2022 will:
1. Protect businesses from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding up petition to £10,000 or more. (it was previously £750, compared to the individual insolvency threshold which had been increased to £5,000)
2. Require creditors to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding up action.
3. Continue to protect commercial tenants by continuing the restriction on winding up in respect of commercial rent.
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