The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
Guidance and news
DRO Newsletter August 2022
The Insolvency Service has published DRO News August 2022, which should have been circulated to all DRO Competent Authorities. The newsletter includes:
updates to their guidance on pensions
consulting SDAS
guidance on withholding the addresses of Armed Forces Bases
Energy bills resources
Shelter has published an overview of the help available including other ways to save on energy bills.
National Debtline has a new fact sheet that covers what support is available, dealing with deficit budgets, and more.
The government has produced a policy paper that lists the support being given to households, and how the Energy Price Guarantee will be applied to energy bills.
Shelter Help with energy bills
National Debtline Dealing with high gas and electricity bills
Department for Business, Energy & Industrial Strategy Energy bills support
Deficit budgets call for evidence
The Money and Pensions Service (MaPS) has published its call for evidence on debt advice clients with deficit budgets with the aim of understanding what help could be offered for clients with deficit budgets.
MaPS Call for evidence on debt advice clients with deficit budgets
Increased fee for creditor bankruptcy deposits
The Insolvency Service has announced that the fee for a creditor to initiate bankruptcy proceedings will increase from £990 to £1,500 from 1 November 2022. It has also been confirmed that the fee for a debtor’s bankruptcy petition will not change.
The Insolvency Service Creditor bankruptcy and liquidation petition deposits to rise
The Insolvency Proceedings (Fees) (Amendment) Order 2022
Community-based debt advice to receive further grants
The Money and Pensions Service (MaPS) will offer £30 million per year in grants to fund existing providers of community-based debt advice, including face-to-face appointments. The grants will take effect for 26 months from 1 February 2023.
MaPS Community-based debt advice in England
Case law
Find debt case summaries by topic on Shelter Legal.
Accessible pension funds with sufficient value relevant to the insolvency test
The High Court held that a debtor aged 55 or over might not meet the insolvency test, depending on how long it would take them to access their pension.
The 'cash flow' test should be used when considering insolvency, but the debtor would need to prove that they could not access their assets within a reasonable timeframe.
Office of the Bankruptcy Adjudicator v Shaw [2021] EWHC 3140 (Ch)
Equality Act 2010 could be grounds for dismissal of a bankruptcy petition
The court has the power to adjourn bankruptcy proceedings if it is satisfied that there is credible evidence that there is a reasonable prospect of the petition debt being paid within a reasonable time.
Commissioners For Her Majesty’s Revenue and Customs v De Freitas [2022] EWHC 1946 (Ch)
When a bankrupt has standing to continue an appeal
Addison stood as a personal guarantor and defaulted on a loan repayment which resulted in him being served with a statutory demand and made bankrupt. The appeal vesting in the Official Receiver as property cannot benefit the estate therefore Addison did have standing to continue with his appeal.
Addison v London European Securities Ltd [2022] EWHC 1077 (Ch)