UPDATE: COVID–19 Guidance Masters’ Courts Bankruptcy and Companies Key Changes

On 29 January 2021 the Bankruptcy Court issued updated guidance on court business in light of current restrictions.  A summary is set out below:

Arrangements for Reactivating Creditors’ bankruptcy and winding up petitions adjourned from March 2020

Where a debtor or company wishes to submit to a bankruptcy or winding up order, the petition may be listed for a remote hearing if the Court is provided with the following:

• A fully completed and sworn statement of affairs;
• A written undertaking signed by the individual/ director(s) to co-operate with the Official Receiver (including remotely); and
• Full contact details to include an email address.

Parties wishing to reactivate a petition on a consent basis must collaboratively complete and lodge the relevant court form with all of the above attached.  If the Court is satisfied as to the information provided it will then allocate a date and time for a remote hearing of the petition.

Creditors’ petitions as new business

The restriction on the presentation of new creditors’ petitions continues and is unlikely to be removed in the short term due to unprecedented challenges faced as a result of the pandemic.

Filing Affidavits

Proceedings must be grounded on affidavits unless otherwise directed by the Court, however where appropriate, Insolvency Practitioners may file a report under Rule 7.12 of the Insolvency Rules (Northern Ireland) 1991 instead of an affidavit unless the Court orders otherwise.  Any report so filed shall be treated as if it were an affidavit.

Supervisors’ Petition and Administrators’ Petitions for Winding Up

Following consultation with the Official Receiver, it was agreed that these petitions could be filed as new business from 1 October 2020.

Should you have any queries, please contact a member of our Insolvency and Business Restructuring team. 

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