With the Legal Aid Sentencing and Punishment of Offenders Act (LASPO) 2012 deadline of 31 March 2015 looming, ATE Insurance Underwriters are busy dealing with requests for insurance from Insolvency Practitioners before the exemption for Insolvency proceedings finishes.
In a nutshell Insolvency litigation returns money to creditors. If success fees and insurance premiums cannot be recovered from the defendant this will have to come out of any damages awarded and could therefore diminish any return for creditors.
The ending of the exemption is likely to mean that Insolvency Practitioners cannot justify taking action against delinquent directors or other defendants to creditors and indeed may result in delinquent individuals from dragging claims out if they know the difficulties Insolvency Practitioner will face in funding a claim.
If you require further advice regarding any of the issues raised please contact Jennie Blagg at firstname.lastname@example.org. You can also follow Jennie on Twitter @JennieRamsdens.