The Insolvency (Amendment) Rules (Northern Ireland) 2011

Citation, commencement and interpretation

1.—(1) These Rules may be cited as the Insolvency (Amendment) Rules (Northern Ireland) 2011 and come into operation on 30th June 2011.

(2) In these Rules—

“the Department” means the Department of Enterprise, Trade and Investment;

“the principal Rules” means the Insolvency Rules (Northern Ireland) 1991(1), and any reference to a numbered Part, Rule, Schedule or form is a reference to the Part, Rule, Schedule or form so numbered in the principal Rules unless the context otherwise requires; and

“the Order” means the Insolvency (Northern Ireland) Order 1989 and any reference to a numbered Article is a reference to an Article of that Order.

Amendments to the principal Rules

2.  The principal Rules are amended as set out in Rules 3 to 30 of these Rules.

Amendment to Rule 0.2

3.  In Rule 0.2 (interpretation) in paragraph (b) of the definition of “the insolvent estate” for “an individual insolvency”, substitute “a bankruptcy or a petition for bankruptcy”.

Amendment to Rule 0.3

4.  In Rule 0.3—

(a) in paragraph (1), after “personal”, insert “or other”;

(b) in paragraph (3), at the end insert “except applications for debt relief orders.”; and

(c) in paragraph (4), after “application” where it first occurs, insert “made to the court”.

Amendment to Rule 2.056

5.  In Rule 2.056—

(a) in paragraph (2), omit “or any authorisation under section 323 of the Companies Act”;

(b) for paragraph (4), substitute—

“(4) No member may be represented by—

(a) another member of the committee;

(b) a person who is at the same time representing another committee member;

(c) a body corporate;

(d) an undischarged bankrupt;

(e) a person to whom a moratorium period under a debt relief order applies;

(f) a disqualified director; or

(g) a person who is subject to a bankruptcy restrictions order or a debt relief restrictions order.”.

(c) omit paragraph (5).

Amendment to Rule 3.21

6.  In Rule 3.21—

(a) in paragraph (2), omit “or any authorisation under section 323 of the Companies Act”;

(b) for paragraph (4), substitute—

“(4) No member may be represented by—

(a) another member of the committee;

(b) a person who is at the same time representing another committee member;

(c) a body corporate;

(d) an undischarged bankrupt;

(e) a person to whom a moratorium period under a debt relief order applies;

(f) a disqualified director; or

(g) a person who is subject to a bankruptcy restrictions order or a debt relief restrictions order”.

(c) omit paragraph (5).

Amendment to Rule 4.167

7.  In Rule 4.167—

(a) in paragraph (2), omit “or any authorisation under section 323 of the Companies Act”;

(b) for paragraph (4), substitute—

“(4) No member may be represented by—

(a) another member of the committee;

(b) a person who is at the same time representing another committee member;

(c) a body corporate;

(d) an undischarged bankrupt;

(e) a person to whom a moratorium period under a debt relief order applies;

(f) a disqualified director; or

(g) a person who is subject to a bankruptcy restrictions order or a debt relief restrictions order”.

(c) omit paragraph (5).

Insertion of new Part 5A – debt relief orders

8.  After Part 5 (individual voluntary arrangements), insert Part 5A as set out in Schedule 1 to these Rules.

Amendment to Rule 6.153

9.  In Rule 6.153—

(a) for paragraph (4), substitute—

“(4) No member may be represented by—

(a) another member of the committee;

(b) a person who is at the same time representing another committee member;

(c) a body corporate;

(d) an undischarged bankrupt;

(e) a person to whom a moratorium period under a debt relief order applies;

(f) a disqualified director; or

(g) a person who is subject to a bankruptcy restrictions order or a debt relief restrictions order”.

(b) omit paragraph (5).

Insertion of new Chapters 30, 31 and 32 of Part 6 – debt relief restrictions orders and undertakings

10.  At the end of Part 6 insert—

“CHAPTER 30 DEBT RELIEF RESTRICTIONS ORDER

Interpretation

6.245.   In this Chapter and in Chapter 31—

“Department” includes the official receiver acting in accordance with paragraph 1(2)(b) of Schedule 2ZB to the Order.

Application for debt relief restrictions order

6.246.— (1) Where the Department applies to the court for a debt relief restrictions order to be made in relation to a person in respect of whom a debt relief order has been made under paragraph 1 of Schedule 2ZB to the Order, the application must be supported by a report by the Department.

(2) The report must include—

(a) a statement of the conduct by reference to which it is alleged that it is appropriate for a debt relief restrictions order to be made; and

(b) the evidence on which the Department relies in support of the application.

(3) Any evidence in support of an application for a debt relief restrictions order provided by persons other than the Department must be by way of an affidavit.

(4) The hearing date must be no earlier than 8 weeks from the date when the court fixes the venue for the hearing.

Service on the respondent

6.247.— (1) The Department must not more than 14 days after the date on which the application is made at court serve notice of the application and the venue fixed by the court on the debtor.

(2) The notice served on the respondent must be accompanied by a copy of the application, together with copies of the report by the Department, any other evidence filed with the court in support of the application, and an acknowledgement of service.

(3) The respondent must not more than 14 days after the date on which the application is served on him file in court an acknowledgement of service of the application indicating whether or not he contests the application.

(4) Where the respondent has failed to file an acknowledgement of service and the time period for doing so has expired, the respondent may attend the hearing of the application but may not take part in the hearing unless the court gives permission.

The debtor’s evidence

6.248.— (1) If the debtor wishes to oppose the application, he must within 28 days from the date of service on him of the application and evidence of the Department, file in court any evidence which he wishes the court to take into consideration.

(2) If the debtor files evidence under paragraph (1) of this Rule, he must within 3 business days of filing it at the court, serve a copy of such evidence upon the Department.

(3) The Department must, within 14 days from receiving the copy of the debtor’s evidence, file in court any further evidence in reply it wishes the court to take into consideration and must as soon as reasonably practicable serve a copy of that evidence upon the debtor.

Making a debt relief restrictions order

6.249.— (1) The court may make a debt relief restrictions order against the debtor, whether or not the latter appears and whether or not he has filed evidence in accordance with Rule 6.248.

(2) Where the court makes a debt relief restrictions order, it must send two sealed copies to the Department.

(3) As soon as reasonably practicable after receipt of the sealed copies of the order, the Department must send a sealed copy of the order to the debtor.

CHAPTER 31 INTERIM DEBT RELIEF RESTRICTIONS ORDER

Application for interim debt relief restrictions order

6.250.— (1) Where the Department applies for an interim debt relief restrictions order under paragraph 5 of Schedule 2ZB to the Order, the court must fix a venue for the hearing.

(2) Notice of an application for an interim debt relief restrictions order must be given to the debtor at least 2 business days before the hearing date unless the court directs otherwise.

The case against the debtor

6.251.— (1) The Department must file a report in court as evidence in support of any application for an interim debt relief restrictions order.

(2) The report must include evidence of the debtor’s conduct which is alleged to constitute the grounds for the making of an interim debt relief restrictions order and evidence of matters which relate to the public interest in making the order.

(3) Any evidence provided in support of an application for an interim debt relief restrictions order by persons other than the Department must be by way of an affidavit.

Making an interim debt relief restrictions order

6.252.— (1) The debtor may file in court any evidence which he wishes the court to take into consideration and may appear at the hearing for an interim debt relief restrictions order.

(2) The court may make an interim debt relief restrictions order against the debtor, whether or not the latter appears, and whether or not he has filed evidence in accordance with paragraph (1) of this Rule.

(3) Where the court makes an interim debt relief restrictions order, it must, as soon as reasonably practicable, send two sealed copies of the order to the Department.

(4) As soon as reasonably practicable after receipt of the sealed copies of the order, the Department must send a sealed copy of the order to the debtor.

Application to set aside an interim debt relief restrictions order

6.253.— (1) A person subject to an interim debt relief restrictions order may apply to the court to set the order aside.

(2) An application to set aside an interim debt relief restrictions order must be supported by an affidavit stating the grounds on which the application is made.

(3) Where an application is made under paragraph (1) of this Rule, to set aside an interim debt relief restrictions order, the person making the application must not less than 5 business days before the hearing date send to the Department,—

(a) notice of his application

(b) notice of the venue;

(c) a copy of his application; and

(d) a copy of the supporting affidavit.

(4) The Department may attend the hearing and call the attention of the court to any matters which seem to it to be relevant, and may itself give evidence or call witnesses.

(5) Where the court sets aside an interim debt relief restrictions order it must, as soon as reasonably practicable, send two sealed copies of the order to the Department.

(6) As soon as reasonably practicable after receipt of the sealed copies of the order, the Department must send a sealed copy of the order to the applicant.

CHAPTER 32 DEBT RELIEF RESTRICTIONS UNDERTAKING

Acceptance of debt relief restrictions undertaking

6.254.   A debt relief restrictions undertaking signed by a person in relation to whom a debt relief order has been made must be deemed to have been accepted by the Department for the purposes of paragraph 9 of Schedule 2ZB to the Order when the undertaking is signed on behalf of the Department.

Notification

6.255.   As soon as reasonably practicable after a debt relief restrictions undertaking has been accepted by the Department, a copy must be sent to the person who offered the undertaking and to the official receiver.

Application under paragraph 9(3) of Schedule 2ZB to the Order to annul a debt relief restrictions undertaking

6.256.— (1) An application under paragraph 9(3)(a) or (b) of Schedule 2ZB to the Order must be supported by an affidavit stating the grounds on which it is made.

(2) The applicant must give notice of the application and the venue, together with a copy of the affidavit supporting his application to the Department at least 28 days before the hearing date.

(3) The Department may attend the hearing and call the attention of the court to any matters which seem to it to be relevant, and may itself give evidence or call witnesses.

(4) The court must send a sealed copy of any order annulling or varying the debt relief restrictions undertaking to the Department and the applicant.”.

Amendment to Rule 6A.1

11.  In Rule 6A.1—

(a) after paragraph (1) insert—

“(1A) The Department must create and maintain a register of matters relating to debt relief orders in accordance with the provisions of this Part (referred to in this Part as “the register of debt relief orders”).”.

(b) for paragraph (2), substitute—

“(2) The register—

(a) referred to in paragraph 12 of Schedule 2A to the Order (referred to in this Part as “the bankruptcy restrictions register”), and

(b) of the matters specified in paragraphs (b) and (c) of Article 208W (referred to in this Part as “the debt relief restrictions register”),

must be maintained in accordance with the provisions of this Part.”.

(c) in paragraph (3), after “paragraphs (1)” insert, “(1A)”.

(d) for the cross-heading substitute “Registers of individual voluntary arrangements, debt relief orders and bankruptcy and debt relief restrictions.”.

Insertion of New Rules 6A.3A and 6A.3B

12.  After Rule 6A.3, before the cross-heading for Chapter 3, insert—

“Entry of information onto the register of debt relief orders

6A.3A.— (1) This Rule is subject to Rules 5A.18, 6A.3B and 6A.6.

(2) The official receiver must cause to be entered onto the register of debt relief orders as soon as reasonably practicable after the making of a debt relief order the following information relating to the order or to the debtor in respect of whom it has been made—

(a) as they are stated in the debtor’s application—

(i) the name, gender, occupation (if any) and date of birth of the debtor;

(ii) the debtor’s last known address;

(iii) the name or names in which he carries or has carried on business, if other than his true name; and

(iv) the nature of his business and the address or addresses at which he carries or has carried it on and whether alone or with others;

(b) the date of the making of the debt relief order;

(c) the reference number of the order;

(d) the date of the end of the moratorium period; and

(e) where a bankruptcy order has been made in the period of six years immediately prior to the date of the latest debt relief order made against the debtor (excluding for these purposes any bankruptcy order that was annulled) the date of whichever is the latest of them.

(3) Provided that information concerning a debt relief order has not been validly deleted under Rule 6A.3B, the official receiver must also cause to be entered on the register in relation to the order—

(a) where the moratorium period is terminated early, the fact that such has happened, the date of early termination and whether the early termination is on revocation of the debt relief order or by virtue of any other statutory provision;

(b) where the moratorium period is extended, the fact that such has happened, the date on which the extension was made, its duration and the date of the new anticipated end of the moratorium period; or

(c) where the debtor is discharged from all qualifying debts, the date of such discharge.

Deletion of information from the register of debt relief orders

6A.3B.   The Department must delete from the register of debt relief orders all information concerning a debt relief order where—

(a) the debt relief order has been revoked; or

(b) the debtor has been discharged from his qualifying debts;

and a period of 3 months has elapsed from the date of revocation or discharge.”.

Insertion of new Chapter 3A into Part 6A

13.  After Rule 6A.5 insert—

“CHAPTER 3A DEBT RELIEF RESTRICTIONS REGISTER

Debt relief restrictions orders and undertakings – entry of information onto the debt relief restrictions register

6A.5A.— (1) This Rule is subject to Rules 5A.18, 6A.5B and 6A.6

(2) Where an interim debt relief restrictions order or a debt relief restrictions order is made against a debtor, the Department must enter onto the debt relief restrictions register—

(a) the name, gender, occupation (if any) and date of birth of the debtor;

(b) the debtor’s last known address;

(c) a statement that an interim debt relief restrictions order or, as the case may be, a debt relief restrictions order has been made against him;

(d) the date of the making of the order and the order reference number; and

(e) the duration of the order.

(3) Where a debt relief restriction undertaking is given by a debtor, the Department must enter onto the debt relief restrictions register—

(a) the name, gender, occupation (if any) and date of birth of the debtor;

(b) the debtor’s last known address;

(c) a statement that a debt relief restrictions undertaking has been given;

(d) the date of the acceptance of the debt relief restrictions undertaking by the Department and the reference number of the undertaking; and

(e) the duration of the debt relief restrictions undertaking.

Deletion of information from the debt relief restrictions register – debt relief restrictions order and undertakings

6A.5B.   In any case where an interim debt relief restrictions order or a debt relief restrictions order is made or a debt relief restriction undertaking has been accepted, the Department must remove from the debt relief restrictions register all information regarding that order or, as the case may be, undertaking after—

(a) receipt of notification that the order or, as the case may be, undertaking, has ceased to have effect; or

(b) the expiry of the order or, as the case may be, undertaking.”.

Amendment to Rule 6A.6

14.  In Rule 6A.6, for paragraph (2), substitute—

“(2) Where the Department receives notice of the date of the death of a person in respect of whom information is held on any of the registers, it shall cause the fact and date of the person’s death to be entered onto each of the registers on which information in respect of the person is held.”.

Amendment to Rule 7.01

15.  In Rule 7.01, after paragraph (1) insert—

“(1A) Every proceeding under Para 7A of the Order shall be headed and, with any necessary additions, be intituled—

““IN THE HIGH COURT OF JUSTICE IN NORTHERN IRELAND CHANCERY DIVISION (DEBT RELIEF)

Re (name and short description, including any current trading name, of debtor to which the proceedings relate)”.”.

Amendment to Rule 7.02

16.  In Rule 7.02, after paragraph (1) delete the full stop and insert—

“(g) applications for debt relief restrictions orders and interim debt relief restrictions orders.”.

Amendment to Rule 7.07

17.—(1) In Rule 7.07, in paragraph (1)—

(a) for sub-paragraph (a), substitute—

“(a) that the application is made under the Order;

(aa) the names of the parties;

(ab) the name of the bankrupt or the debtor who or company which is the subject of the insolvency proceedings to which the application relates;

(ac) where the court has previously allocated a number to the insolvency proceedings within which the application is made, that number;”; and

(b) in sub-paragraph (b), for “relief”, substitute “remedy”.

(2) Omit paragraph (2).

Amendment to Rule 7.14

18.  In Rule 7.14(2), after “113, 200,” insert “208N,”.

Amendment to Rule 7.22

19.  In Rule 7.22—

(a) In the heading, after “Article 200” insert “, 208N and”; and

(b) In paragraph (1), immediately before “or 337” insert “, 208N (the equivalent in relation to debt relief orders)”.

Amendment to Rule 7.27

20.  In Rule 7.27, at the end of paragraph (2)(c)(iii), delete the full stop and insert—

“; and

(d) in proceedings relating to a debt relief order, by the debtor.”.

Amendment to Rule 7.36

21.  In Rule 7.36, for paragraphs (1) to (3), substitute—

“(1) This Rule applies where a party to, or person affected by, any proceedings in an insolvency—

(a) applies to the court for an order allowing his costs, or part of them, incidental to the proceedings; and

(b) that application is not made at the time of the proceedings.

(2) The person concerned shall serve a sealed copy of his application—

(a) in proceedings other than proceedings relating to a debt relief order—

(i) on the responsible insolvency practitioner, and

(ii) in a winding up by the court or a bankruptcy, on the official receiver;

(b) in proceedings relating to a debt relief order, on the official receiver.

(3) The insolvency practitioner and, where appropriate, the official receiver may appear on an application to which paragraph (2)(a) applies.

(3A) The official receiver may appear on an application to which paragraph (2)(b) applies.”.

Amendment to Rule 7.37

22.  In Rule 7.37—

(a) in paragraph (1), after “the bankrupt”, insert “ or the debtor”; and

(b) in paragraph (2), for “insolvency proceedings”, substitute “a company insolvency or bankruptcy proceedings”.

Amendment to Rule 7.58

23.  At the end of Rule 7.58(1) delete the full stop and add “other than proceedings relating to a debt relief order.”.

Amendment to Rule 9.1

24.  In Rule 9.1—

(a) for paragraph (1), substitute—

“(1) This Part applies to applications to the court for an order under—

(a) Article 200 (inquiry into company’s dealings), [FORM 9.1];

(b) Article 208N debt relief orders – inquiry into dealings and property of debtor), [FORM 9.1]; or

(c) Article 337 (inquiry into bankruptcy, with respect to the bankrupt’s dealings – including Article 337 as it applies by virtue of Article 339). [FORM 9.1)”; and

(b) for paragraph (2)(b) and (c), substitute—

“(b) “the applicable Article” is Article 200, 208N or 337, according to whether the affairs of a company or those of a debtor in relation to a debt relief order or an application for a debt relief order or a bankrupt or (where the application under Article 337 is made by virtue of Article 339) a debtor in bankruptcy proceedings are in question;

(c) the company or, as the case may be, the debtor in relation to a debt relief order or an application for a debt relief order, the bankrupt or debtor in bankruptcy proceedings concerned is “the insolvent”; and

(d) “the applicant”, in any application made under Article 208N, means the official receiver.”.

Amendment to Rule 9.4

25.  In Rule 9.4—

(a) for paragraph (2), substitute—

“(2) Unless the applicant objects, the following persons may attend the examination with the permission of the court and may put questions to the respondent (but only through the applicant)—

(a) any person who could have applied for an order under the applicable Article; and

(b) any creditor who has provided information on which the application was made under Article 200 or 337.”.

(b) omit paragraph (4).

Amendment to Rule 9.6

26.  In Rule 9.6—

(a) in the heading, after “Article 200” insert “, 208N and”; and

(b) in paragraph (3)(b), after “individual insolvency” insert “, but not in proceedings relating to debt relief orders or applications for debt relief orders,”.

Amendment to Rule 10.2

27.  In Rule 10.2(1)(a), after “200,” insert “208N,”.

Amendment to Rule 10.4

28.  In Rule 10.4(2), after “paragraph (1)”, insert “in connection with insolvency proceedings other than proceedings relating to debt relief orders or applications for debt relief orders,”.

Amendment to Rule 12.01

29.  In Rule 12.01(2)(d)(ii), for “individual insolvency”, substitute “bankruptcy”.

Amendments to Schedule 2

30.  In Schedule 2—

(a) in the index to forms, for the entries relating to Forms 7.08, 7.09 and 9.1, substitute:

“7.08 Warrant of arrest etc. under Article 200, 208N or 337 of the Insolvency (Northern Ireland) Order 1989”

“7.09 Order for production of person arrested under warrant issued under Articles 114, 200, 208N, 335 or 337 of the Insolvency (Northern Ireland) Order 1989”

“9.1 Order under Article 200, 208N, or 337 of the Insolvency (Northern Ireland) Order 1989”; and

(b)

for Forms 7.08, 7.09 and 9.01, substitute the new forms so numbered as set out in Schedule 2 to these Rules.

Sealed with the Official Seal of the Department of Justice on 22nd March 2011

David Ford

Minister of Justice

I concur

Declan Morgan

Lord Chief Justice of Northern Ireland

Dated 22nd March 2011

The Department of Enterprise, Trade and Investment concurs with the foregoing Rules

Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on 22nd March 2011

T. Cooper

A senior officer of the

Department of Enterprise, Trade and Investment