Member Article

On 16th December 2022 the Bankruptcy Master released an update which advised that the restriction on filing new creditors' winding up petitions is likely to be lifted in the new term.  The court has advised that further information will be issued to legal practitioners in advance of the new guidance.

The court noted that lifting the restrictions may bring about some logistical challenges which is further hampered by the absence of the new proposed Insolvency (Amendment) Rules (Northern Ireland) 2022 and has encouraged a collaborative approach between all practitioners and the court.

It is appears that the courts in Northern Ireland are preparing to transition away from the various regulations which had assisted in protecting debtors and preventing enforcement.  The court has previously lifted the restriction on bankruptcy proceedings and is now close to allowing new creditor’s petitions in what spells the end of COVID protection for borrowers. This will be good news for creditors particularly as the UK moves into recession which will inevitably bring an increase in insolvency matters. It is hoped that guidance will be issued shortly to enable practitioners to file new winding up petitions.

Should you have any queries regarding insolvency matters please do not hesitate to get in touch.

 

Update on new guidance for creditors’ winding up petitions in Northern Ireland.