Insolvency Practitioners breathe a sigh of relief

  • March 19, 2015
  • By Hunters Law

Conditional Fee Agreements (CFAs) and After the Event Insurance (ATE) Premiums remain recoverable in Insolvency Litigation.

The insolvency proceedings exemption to the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) was due to end on 1 April 2015. However, the Ministry of Justice has now announced that the exemption will continue until further notice meaning that success fees on CFAs and ATE premiums continue to be recoverable from the losing party on a pre-LAPSO basis.

The recent announcement represents a u-turn on the part of the government, which has come under significant pressure from trade bodies and insolvency practitioners who have argued that, without the exemption, litigation to recover monies for the benefit of creditors would be uneconomical resulting in a reduction in sums available to unsecured creditors including HMRC. The government accepted that further reflection was required on this issue and will review matters further later in the year.

It remains to be seen whether the exemption will be permanent.

For information on this or any other aspect of litigation, please contact the partner at Hunters having responsibility for your legal matters or, for new enquiries, a member of the Dispute Resolution team.

Related News

Jul 12, 2017
Preventative measures to reduce the risk of potential inheritance disputes
Mar 17, 2017
Richard Kershaw comments on Ilott v Mitson Supreme Court judgment in The Times Law Brief
Dec 12, 2016
Richard Kershaw comments on Ilott v Mitson Supreme Court case in the Financial Times, Family Law Week and New Law Journal
Nov 29, 2016
Rejection to register Caffè Nero EU trademarks
Nov 08, 2016
Charities vs children: who decides?
Sep 29, 2016
A New Form Of Copyright Infringement: The Posting of Hyperlinks
Aug 23, 2016
Jamie Lester discusses the dangers of missing court deadlines in The Barrister
Jul 25, 2016
Insolvency practice: changes to look out for
May 09, 2016
Controlling the Mastermind
Apr 22, 2016
Court of Appeal considers scope of all reasonable endeavours and good faith obligations

© Hunters Law LLP 2023 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)