MoJ could exclude insolvency in latest reforms

by Rachael Singh

More from this author

07 Jun 2011

  • Comments

THE MINISTRY OF JUSTICE has said it might exclude insolvency proceedings in the latest reform to curb no-win, no-fee litigation cases.

Earlier this year, the government-commissioned Jackson Report was published and included plans to abolish conditional fee arrangements (CFAs), better known as no-win, no-fee deals.

Restricting these types of deals could make it more difficult for insolvency practitioners to pursue fraudulent company directors, to recover greater funds for creditors.

HMRC, as a recurring unsecured creditor, could lose millions of pounds each year from the reforms as practitioners decide against pursuing company directors through the courts.

However, a MoJ spokesman told The Guardian: "We are considering the impact of abolishing CFA recoverability in insolvency and related proceedings. These proceedings can bring substantial returns to creditors, including HMRC.

"We are therefore discussing the specific implications with a view to reaching a satisfactory conclusion."

The reforms were brought in to reduce the numbers of what are known as ambulance-chasing lawyers in litigation cases.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.