As of 17 April 2023 new creditors winding up petitions can be presented in accordance with the Insolvency (Amendment) Rules (NI) 2023. This means that the restrictions faced by creditors in filing winding up petitions will be lifted, and ultimately more companies will be open to pursual.
The introduction of the Insolvency (Amendment) Rules (NI) 2023 on 13th March 2023 was awaited by practitioners, businesses and creditors. The permanency of the Rules mean that businesses and creditors alike are provided with clarity and certainty following the end of COVID relief for borrowers. Indeed, those businesses currently in financial distress will be concerned and can expect creditors to start to take action.
New creditor winding up petitions can be presented provided that the following criteria is satisfied:
- The petition is in the new form contained in the provisions of the Rules.
- The subject debt must arise from a court judgement, decree or other similar court order. The relevant court order must accompany the petition when the same is being filed with the court, with the exception of HMRC petitions.
- The petition must be grounded on a formal demand made on or after 13th March 2023.
It is anticipated that the number of insolvency matters will increase, and this is not without its challenges for the court. Notably, the number of petitions that may be heard at any time will be reduced due to the transition away from bulk in-person hearings to scheduled hearings.
Masters - New Creditors' Winding Up Petitions - 13 Mar 2023.pdf (judiciaryni.uk)
The Insolvency (Amendment) Rules (Northern Ireland) 2023 (legislation.gov.uk)
Disclaimer
This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2024.