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As the United Kingdom Supreme Court opens its doors for business news reaches the bankruptcy blog that a court much lower down in the judicial hierarchy (South Shields County Court) has excused one debtor some £8,000 in debts. The story is reported here. Creditors may be alarmed, but this payment protection issue has been rumbling for some time and at last we have some judicial comment on the issue. In other insolvency news, Birmingham & Solihull Rugby club is hoping that insolvency laws might be their saviour.
The UK Supreme Court have issued new Practice Directions (SCPD). SCPD 8 (Miscellaneous matters) does touch on the subject of bankruptcy. It notes that any company or individual that goes into an insolvency procedure, must notify the court and the other party to the Supreme Court litigation. Here is the relevant part of the SCPD:
"Bankruptcy or winding up
8.1.1 If a party to an appeal is adjudicated bankrupt or a corporate body is ordered
to be wound up, their solicitor must give immediate notice in writing to the other
parties and to the Registrar, who must also be provided with a certified copy of the
bankruptcy or winding up order. The bankrupt party (or his trustee in bankruptcy) or
the liquidator must file an application to pursue the appeal and the appeal cannot
proceed until the application has been approved.
8.1.2 An application to pursue the appeal must be filed within 42 days of the date of
8.1.3 The form of application and the procedure for any supplemental case follows
that for death of a party (see paragraph 8.4 below)."
The Companies Act 2006 has also now come fully into force. The final elements to fall into place relate to:
"* Creating separate and simpler model Articles of Association for small companies, reflecting how they operate
* Enabling greater use of electronic communications with shareholders therefore avoiding unnecessary cost and time consuming administration
* Making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...