Individual Bankruptcy Petitions:
This latest guidance sets out the different criteria required in relation to Creditors’ Bankruptcy Petitions for both Non-Crown and Crown debts.
Firstly, Creditors’ Bankruptcy Petitions for Non-Crown debts may be presented to court if:
- The petition is grounded on a court judgment, decree or other court order (which must accompany the petition for checking by court staff when the petition is presented); and
- The petition is grounded on a statutory demand dated and served on or after 1st June 2022.
If petitions do not meet the above criteria, they will not be accepted by the court office.
Secondly, Creditors’ Bankruptcy Petitions for Crown debts may be presented to court on the same basis as prior to the pandemic, meaning that a court order does not need to be obtained before a statutory demand is issued. This makes the process significantly more straightforward and quicker for Crown debts.
Company Winding Up Petitions:
The latest guidance does not provide any update in relation to Creditor Winding Up Petitions, which have been deferred until after the proposed permanent moratorium rules come into effect in Northern Ireland. However, with no Executive currently sitting at Stormont, there is uncertainty as to when this might be.
If you have any queries regarding the information provided above, please feel free to get in touch with the Restructuring & Insolvency Team @ Mills Selig
Editorial prepared by Kathryn McIvor, Solicitor, Litigation @ Mills Selig
Kathryn McIvor, Solicitor, Litigation
Kathryn works within the Litigation team at Mills Selig specialising in debt recovery actions.
Kathryn also assists Mills Selig partner, Richard Craig, as part of the Restructuring and Insolvency team, providing advice to companies, individuals and Insolvency Practitioners.
Having the right legal advice at the right time is crucial – our expert team offers clear, concise and problem solving legal advice.
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