The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
This month's legal round-up includes government consultation responses, trust fund closure, and updated court guidance.
Review of the personal insolvency framework
The Insolvency Service has published its review of the personal insolvency framework with a summary of responses and next steps. The consultation raises concerns that:
the upfront fees for bankruptcy and DROs are barriers to accessing these solutions
there are misleading practices and high fees in the IVA market
options are limited for those who cannot afford insolvency
The government intends to develop proposals for reform, which include:
routes and barriers into insolvency (such as lower fee regimes, waiving DRO fees and payment by instalments)
individuals accessing the most appropriate solution for their needs
options for structural reform of the overall framework
The government intends to publish proposals for further consultation in early 2024.
Review of the personal insolvency framework
New Business Debtline AdviserHub launched
Business Debtline has launched its AdviserHub – a free tool for debt advisers in dealing with business debt cases.
Severn Trent Trust Fund (STTF) to close
Severn Trent Water has announced that it will be reallocating STTF funding to the ‘Big Difference Scheme’ from September. The STTF will stop accepting new water grant applications in September.
Severn Trent Water commitment to the Enforcement Conduct Board (ECB)
Severn Trent Water has announced that it requires all enforcement agencies it instructs to be accredited by the ECB.
Announcement in the High Court Enforcement section
New Civil National Business Centre
The County Court Money Claim Centre (CCMCC) and County Court Business Centre (CCBC) have been replaced by the newly named Civil National Business Centre (CNBC).
Any new claim or application received prior to 1 September 2023 will be accepted with the old name. Any new claim or application with the old name after 1 September 2023 will be returned.
The required CPR changes can be found from page 3 onwards in the 158th Update – Practice Direction Amendments.
Guidance to insolvency practitioners on debt packagers
The Insolvency Practitioners Association (IPA) has published guidance for debt packagers following the FCA’s ban on debt packagers' referral fees. The ban will come into effect on 2 October 2023.
Compulsory mediation for small claims
The Ministry of Justice (MoJ) has announced that it is committed to fully integrating mediation for civil claims allocated to the small claims track. Parties will be automatically referred for a free hour-long telephone mediation session before their case can be progressed to a hearing.
The MoJ has not given a timescale for mediation integration.
Case law
Find debt case law summaries by topic on Shelter Legal.
Setting aside a default judgment
The three-stage Denton test applies to all applications to set aside a default judgment under CPR 13.3.
FXF v English Karate Federation Ltd & Anor [2023] EWCA Civ 891
Magistrates' court fines
This new page explains how to deal with an unpaid court fine, including what to do if the person with the fine was not aware of it, how to ask for a means hearing, and what to do about fines that were wrongly imposed or set too high.