The Enterprise Bill deals with many topics

The Bill is a large one and it deals with many more topics than those embraced by this article. However, the following is a brief summary of its key provisions in the areas of bankruptcy, winding up, administrative receivership and administration:

The stigma and consequences of bankruptcy will be reduced for most bankrupts. Those not judged to have been reckless or criminal will be discharged after one year (or even less in some cases), instead of three years as happens now. Many of the irrelevant and outdated restrictions that currently apply to bankrupts will be removed. It will be possible, for example, for a non-culpable bankrupt to be a member of parliament. Some commentators have expressed surprise at this, but many people take the view that the quality of the legislature will not be diminished.
The consequences of bankruptcy will be maintained or increased for a minority of bankrupts judged to have been culpable. These bankrupts will have to comply with bankruptcy restriction orders for between two years and fifteen years.
Income payment orders will run for a period of three years, irrespective of the date of discharge from bankruptcy. These will ensure that bankrupts make an affordable contribution to their debts out of their income.
The Crown's preferential right to recover unpaid taxes ahead of ordinary creditors in winding up and bankruptcy will be abolished. It is expected that secondary legislation will ensure that a proportion of the money that would have gone to the Crown will be available for unsecured creditors, rather than it all going to secured creditors.
There will be measures to restrict the use of administrative receivership where a single secured creditor has effective control. The single secured creditor is usually a bank.
There will be greater emphasis on administration orders and there will be detailed changes in this area.

The proposed abolition of crown preference has been very widely welcomed and this will no doubt be the response of most readers of this article, although employees of the Inland Revenue and Customs and Excise may have some regrets. It will result in more money being available for unsecured creditors, and it will reduce the incentive of the Inland Revenue and Customs and Excise to act hastily in instigating winding up and bankruptcy proceedings. However, there must be a risk that ring-fencing some of the savings for unsecured creditors will be bureaucratic, with semi-random consequences according to the amount of tax owed and the relative weight of secured and unsecured creditors.

It is expected that administration will be used more and receivership less. This too has been generally welcomed because there may be more prospects of saving companies and because the unsecured creditors may do better. No doubt the banks will still succeed in safeguarding their interests.

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2. Sellers can sue customers and go to trial if these do not respect the contract
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3. Negotiating a settlement in a debt recovery process can bring great satisfactions
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4. A customer that cannot pay your invoices might also not pay other suppliers
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5. A debt recovery case allows you to claim the maximum amount owed to you
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6. Interest rates debt recovery costs and time limit for issuing a claim
The rate of interest This may be fixed by a contract or by established custom and practice, so long as a substantial remedy is provided. In the absence of eithe...

7. What to keep in mind when issuing a debt recovery claim
The correct wording for most of the various categories of defendant is as follows: An individual You should put the surname and if possible all forenames,...

8. The debt recovery defendant has various legal options
Pay the amount claimed From the claimant's point of view this is the ideal outcome and it does quite often happen. The defendant's bluff is called or he is forc...

9. Options of a defendant who chooses to defend a debt recovery claim
Defend the claim If the defendant decides to defend the claim, he must complete the 'Defence and Counterclaim (specified amount)' form and return it to the co...

10. The allocation questionnaire is very important in a debt recovery claim
An allocation questionnaire will be sent to both the claimant and the defendant shortly after a defence has been entered. It is a most important document that should al...

The Enterprise Bill deals with many topics

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