The 2016 Insolvency Rules and how they effect personal service

The Insolvency (England and Wales) Rules 2016 came in to force on 6th April 2017. The new rules can be downloaded here. 

Changes to statutory demand Templates

Please note that statutory demands for bankruptcy are now issued under Part 10 of the rules and not Part 6. statutory demand template forms have been amended to reflect this change and can be downloaded by visiting HM Courts and Tribunals Service download page by clicking here and selecting ‘Bankruptcy & Insolvency’ in the dropdown box. The new templates must now be used.

It appears, that the new template SD2 contains an error in Part A, and requires manual amendment (see below) until such time as HMCTS amend their template. You will note template SD3 shows the correct wording.

Suggested Amendment to Part A of SD2

Part A
Appropriate Court for Setting Aside DemandRule 10.4(4)) of the Insolvency Rules 2016 states to which court such an application should be made; and the name of the court of hearing centre of the County Court to which, according to the present information, the debtor must make an application (i.e. the High Court, the County Court at Central London or a named hearing centre of the County Court as the case may be).

Tremark intend to continue with efforts and to personally serve any statutory demands drafted in the old format if they are already in our possession and dated prior to 6^th April 2017.

So how does this effect the serving of bankruptcy and winding up proceedings?

Schedule 4, pages 423 – 426 of the rules covers Service of Documents. Schedule 4 refers to service being carried out in accordance with Part 6 of CPR(a) except where a schedule table (pages 425/426) provides otherwise; or the court otherwise directs. Paragraph 2 of Schedule 4 deals with the service of winding up petitions. Schedule 4 The Insolvency Rules 2016

Rule 10 (specifically 10.2 and 10.3) page 231, deals with the service of statutory demands (previously Rule 6). Rule 10.14 deals with the service of bankruptcy petitions.

The actual procedures for personally serving statutory demands, bankruptcy petitions and winding up petitions do not appear to have changed.

However, it should be noted that no new practice directions to accompany the new rules have yet been introduced, and therefore it is not possible to be certain that no changes will take effect or exactly how to interpret 10.2. The Courts and Tribunals Judiciary have released this statement regarding the release of new practice directions.

Proof of Service

There will some slight changes required to the format of the certificates of service although there does not appear to be any new template certificates available from HMCTS at this time.

Certificates of service for winding up petitions, bankruptcy petitions and personally served statutory demands will now refer to whether service was effected before or after 16.30 hours, in accordance with CPR, as oppose to 16.00 hours as previously.

Statutory demands served by letterbox will now need to specify a date on which it is believed the demand will come to the attention of the debtor, and this date will be the deemed date of service.

Any new practice direction may reference how to calculate this date, but until such time any are published we propose to reference the date as the date of service if served before 16.30 hours, or the following working day if served after 16.30 hours or at the weekend, as this is how CPR would deal with it.

As soon as the practice directions are made available we will review further and advise accordingly.

Tremark are able to personally serve statutory demands, bankruptcy petitions, winding Up petitions and all other documents throughout the UK.

Please click here to read more about our process serving or click here to contact us.