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Major changes have been
introduced to insolvency law in Northern Ireland to encourage people to learn
from their business failure and try again.
Those declared bankrupt will see their period of bankruptcy reduced from three
years to 12 months, but a new Bankruptcy Restrictions Order regime is also being
introduced under which discharged bankrupts can be subjected to continuing
restrictions for up to 15 years.
The Order not only helps a significant majority of bankrupts but also will bring
benefits to creditors and companies in financial difficulties.
With limited exceptions, lenders will no longer be allowed to put companies into
Administrative Receivership.
The changes are designed to facilitate the rescue of viable companies or, if not
practicable, to achieve a better outcome for creditors as a whole than if the
company were wound up entirely.
Source:
RedAlert
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