INS9814 - Legislation

Enterprise Act: Personal Insolvency

Part 10 of the Enterprise Act 2002 (EA) relates to insolvency. It received the Royal Assent on 7 November 2002. The Personal Insolvency provisions became operative on 1 April 2004.

Enterprise Act 
S256Duration of Bankruptcy. In future bankrupts will obtain their discharge within one year (in most cases within three to six months). The transitional provisions are set out in Sch 19 EA.
S257Post-discharge Restriction. Introduces Bankruptcy Restriction Orders (BRO) and Bankruptcy Restriction Undertakings (BRU). New S281A and Sch4A IA 86 in Sch 20 EA. The effect of a BRO or BRU is set out in Sch 21 EA. This section also amends various Statutory provisions including S 11 CDDA 86
S258Investigation by Official Receiver.
S259Income Payment Order.
S260Income Payment Agreement
S261Bankrupt’s home. Introduces new S 283A IA 86 (Bankrupt’s home ceases to form part of the Bankruptcy estate if no application is made within three years) and S313A IA 86 (Bankrupt’s homes of low value).
S262Powers of trustee in bankruptcy. Trustee requires sanction before using certain types of clawback proceedings
S263Repeal of certain bankruptcy offences.
SS265 to 268Individual Voluntary Arrangement. New S263A to 263G and S 389 IA 86 set out in Sch22 EA introduces fast-track IVAs in which the Official Receiver acts as nominee or supervisor.
S269Minor and consequential amendments. Sch23 EA outlines a number of amendments.
SS270 to 272Modernises the financial regime by which the DTI Insolvency Service operates.