The final article in this series covers off a number of ways processing of information will occur under the new rules and also acts as a coverall for a few of the miscellaneous provisions which are also of import.

 

Statement of affairs

Along with all of the other statutory forms, there will be a significant change to the information provided in the statement of affairs. It has been identified that as the statement of affairs is an item of public record and is at risk of divulging personal data which some parties would prefer not to be published.

Accordingly the new rules state that employee and customer details should be set out in a separate table and this will not be placed on the public record. Instead there will be a summary of their claims within the statement of affairs and additional categories to cover this off. This will hopefully improve confidentiality for these stakeholders.

 

The insolvency register

Where someone is subject to a formal insolvency procedure their name will be published on the insolvency register to ensure creditors have an independent point of reference to verify the insolvency. Previously parties who are concerned they may be a victim of violence with their details being published there could previously apply to court to have details suppressed, however this had to be done after the event.

Due to concerns that this may reduce the number of people proceeding with insolvency procedures on this basis alone, the new rules allow for the application to be made prior to the insolvency event. This would ensure that details are suppressed from the commencement of the insolvency offering wider protection.

 

Debts of less than £1,000

Adjudication of creditors claims and chasing down proofs of debt in order to pay out dividends can be a costly process in itself, particularly where the debt is for a low value and creditors have little motivation to submit the same only to receive a small p/£.

The new rules allow for the insolvency practitioner to treat debts of less than £1,000 as proved for the purpose of expediting the dividend process and they shall simply write to these creditors advising it is their intention to pay a dividend at this level and unless they object they will then receive a dividend based on this.