Update: The Temporary Insolvency PD – now in force until 30 September 2021

Litigation in the time of Covid

July 12, 2021

The Temporary Insolvency PD

The Temporary Insolvency PD came into force on 6 April 2020. It was due to expire on 1 October 2020 but given the ongoing effects of the pandemic has been extended repeatedly with its latest iteration now in force until 30 September 2021 (unless amended or revoked by a further insolvency practice direction in the meantime).

The latest extension to the Temporary Insolvency PD was announced on 30 June 2021.

The announcement can be found here and the latest Temporary Insolvency PD here.

As is explained in the announcement:-

“[The latest Temporary Insolvency PD] replaces and extends the previous [Temporary Insolvency PD], which expires on 30 June 2021. There is no change to the procedures that are currently being followed for insolvency hearings or for the provisions in relation to administration appointments and statutory declarations.

Its purpose remains to assist court users during the continuing COVID-19 pandemic by avoiding the need for parties to attend court in person, and to deal with some of the problems arising from the need for the court(s) to operate with limited staff and resources. It continues to supplement the Practice Direction – Insolvency Proceedings July 2018 and applies to all insolvency proceedings in the Business and Property Courts subject to variations outside London as directed by the relevant supervising judge. Company work will be dealt with in a comparable way, and all adjourned hearings will be relisted within six weeks.”

As explained in the announcement, the substance of the Temporary Insolvency PD is unchanged since October 2020.

A full explanation of the Temporary Insolvency PD and its effects are in paragraphs 2.57 to 2.60 of 4 Stone Buildings’ eBook “Litigation in the Time of Covid-19”, which can be found here.