LASPO Act 2012: insolvency exemption continues
Insolvency office holders conducting litigation can continue to recover CFA uplifts and ATE premiums from losing parties.
The government announced today, 26 February 2015, in a Written Statement that the insolvency exemption to sections 44 and 46 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 will no longer be brought to an end in April 2015.
Lobbying by the Federation of Small Businesses, the British Property Federation, the Chartered Institute of Credit Management, and others, which was coordinated by R3 for the insolvency profession, was instrumental in seeking to protect the recovery of £160million per year for creditors.
Recovering money for creditors is what insolvency is about. If there are no assets in an insolvency estate to cover the cost of litigation, it is entirely right that the litigation risk is borne by the losing parties. Creditors should not have to bear the cost of recovering what was stolen from them.
Date: 26th February, 2015
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