The decision to review the rules was taken as a result of the first five-year review of the insolvency rules which came into force in 2017.

The report indicated that there will also be some work undertaken to improve the creditors’ voluntary liquidation (CVL) process and the scope of insolvency applications.

The CVL process was criticised as ‘unhelpfully inconsistent and opaque’, and Insolvency Service said that ‘the process as a whole should now be further reviewed. We will examine what changes need to be made to improve it and to ensure that it remains fit for purpose’.

The review of the CVL process will examine the use of statutory declarations; timing and content of the information provided to creditors; and pre-appointment expenses. It will also consider expanding the ‘confirmation’ of CVLs to cover debtor petition bankruptcies, voluntary arrangements, and administrations that are entered via the out-of-court procedure.

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