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How Does The New Insolvency Practice Direction Effect Personal Service?

How Does The New Insolvency Practice Direction Effect Personal Service?

By Mark Hodgson, Managing Director, Tremark Associates Ltd

As you may be aware the new Insolvency Practice Direction came in to force on 23rd February 2012.

There are a few changes and clarification concerning the personal service of statutory demands and bankruptcy petitions, particularly in situations where the debtor is evasive and substituted service is required in respect of a statutory demand.

Process servers and creditors need to be made aware that there is an expectation on them to go the extra mile before creditors are able to successfully issue a petition or in the case of a petition get an order for substituted service.

Separate visits for instance must be made to each known residential address and place of business before resorting to a letter of appointment. Various enquires need to be made proving the debtors residence and evidence produced detailing how that and other information is known, such as whether a solicitor acts for the debtor or why it is believed that the letter of appointment has been received.

The Practice Directions leave no excuse for non compliance and it is very important to note that they have statutory force and non compliance could result in an application to strike out under Rule 3.4(2) of the CPR (Re. Gunningham (2002) BPIR 302)

The new rules may lead to increased process servers costs, but surely better to comply first time than fall foul at a later date.

To read my full article concerning the changes and personal service of demands and petitions under the new Practice Directions that came in to force 23rd February 2012 please click here.

To see also how you can save costs and dramatically speed up the process of obtaining an order for substituted service of a bankruptcy petitions please read my previous article written following release of The Insolvency (Amendment) Rule 2010 by clicking here

Should you wish to discuss the matter further or whish to know more about the processes Tremark Associates have in place to ensure full compliance with the Practice Direction please do not hesitate to contact Mark Hodgson or Karl Brooker on 0845 862 1853.


About The Author

Mark Hodgson is the Managing Director of Tremark Associates, one of the UK’s leading providers of investigative services. Mark has 30 years experience in private Investigations and the commercial debt recovery industries. He is Vice President of the Association of British Investigators, a member of the World Association of Detectives, The Institute of Credit Management and an associate member of R3 -The Association of Business Recovery Profession.