Insolvency
This theme is now closed for comment. An announcement on Red Tape Challenge plans will be made in due course.
You can read comments made during the theme spotlight (23 August 2012 – 27 September 2012) by visiting the sub-theme pages listed below.
The aim of the insolvency law framework is to provide an efficient and flexible means for dealing with financial failure and for dealing with the misconduct that is often associated with it. An important part of this is ensuring that creditors have confidence that assets will be sold for fair value and as much as possible is returned to them by way of dividend. Individuals who get into debt also need the means to be free from overwhelming debts they cannot pay, and after a period of time to have a fresh start.
The Insolvency Service, an executive agency of the Department for Business, Innovation and Skills has been working with the insolvency industry, and creditor and debt advice representatives to review and modernise the Insolvency Rules, which set out the detail of how insolvency procedures are administered. We want to build on this work and the Red Tape Challenge is a unique opportunity to ask the public and business for their views on insolvency law issues.
We have divided the regulations into three categories to make the regulations more accessible. We welcome all comments about the insolvency law framework, particularly on what stops you doing business effectively and how we can reduce burdens and simplify. We would also like to know whether we could improve guidance to insolvency practitioners, creditors and people who are overwhelmed by their debts.
Insolvency legislation is wholly devolved in Northern Ireland, and partly devolved in Scotland, so not all of the regulations listed apply across the UK.
To accompany this Red Tape Challenge theme, the Insolvency Service has produced an information paper entitled: “Insolvency Law – providing a flexible framework which encourages entrepreneurship”. You can read it here.
Share your thoughts by commenting on the sub-categories below, or send a private contribution to redtapechallenge@cabinet-office.gsi.gov.uk.
Meet our theme sector champion – Philip King, Chief Executive of the Institute of Credit Management here.
Insolvency proceedings
These regulations are about the different types of insolvency proceedings, the financial limits which apply to them and how they are administered.
Regulation of insolvency practitioners
These regulations set out the requirements that insolvency practitioners must meet (including the financial and administrative records they must keep) and how they are regulated.
Disqualification of directors
There are tough regulations that apply to company directors who abuse the privilege of limited liability. These regulations aim to maintain the integrity of the business environment so that directors carry out their duties responsibly and with proper regard to the interests of the company’s creditors and employees.
Sector Champion
See what our sector champion has to say.
This site is designed to promote open discussion of ways in which the aims of existing regulation can be fulfilled in the least burdensome way possible. The presence of a particular regulation or law on this website should not be read as implying any intention on the part of the Government to remove that regulation or law from the statute book. The purpose of this exercise is to open government up to the public.
