New body to protect rights of creditors
A creditors' rights organisation has been launched at the same time as the arrival of the government's new bankruptcy regime.
The Insolvency Creditors Association (ICA) opened for business with perfect timing to enable it to comment on the changes introduced under the Enterprise Act, dubbed a ‘bankrupt’s charter’ by critics.
The ICA signalled it would pull no punches, accusing the Treasury of creating ‘a stealth tax of the worst kind’ by increasing charges on bankrupt estates.
The organisation said it would promote the interests of creditors by ensuring their better involvement and representation in the insolvency process.
Nick Oliver, head of insolvency at Blake Lapthorn Linnell and vice-president of the IPA, said: ‘The law envisages creditors taking an active role in the insolvency process. This is not what has tended to happen in practice and our aim is to try to change that.’
The IPA will be headed up by Stephen Hunt, partner at Griffins, who will act as president.