As I have updated in my earlier article, the amendments to the Bankruptcy Act have now all come into force on 6 October 2017. We should now all be referring to it as the Insolvency Act 1967, instead of the old Bankruptcy Act 1967.
As a reminder, the new term Insolvency Act 1967 still merely refers to individual insolvency or individual bankruptcy. It does not involve corporate insolvency. Further, even under the Insolvency Act 1967, it continues to refer to the act of bankruptcy and the bankruptcy order.
Going hand in hand with the renamed Insolvency Act 1967, there are now a host of new rules that come along with the Act.
Firstly, there are the new Insolvency Rules 2017. These are important rules setting out the procedure governing the bankruptcy court proceedings as well as proceedings after the bankruptcy order.
Secondly, the Insolvency (Voluntary Arrangement) Rules 2017. The voluntary arrangement is a pre-bankruptcy rescue mechanism. The borrower will appoint a nominee to act as an independent professional to oversee and to try to structure a debt rearrangement compromise with all the borrower’s creditors.
There are then also the amendments and updates for the costs and fees under the Insolvency Act 1967. You can find them through the Insolvency (Fees) Amendment Rules 2017 and the Insolvency (Costs) Amendment Rules 2017.
I haven’t had the time to fully go through all of these new rules. I will provide an update later on.