On 29th September 2021 the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 11) Regulations (Northern Ireland) 2021 will come into force in Northern Ireland.
This means that from 1st October 2021, the temporary insolvency measures introduced during the Covid-19 pandemic are to be phased out and creditors will once again be able to issue winding up petitions in respect of debt which now meets the following new conditions;
- the debt threshold of £10,000.00 (having previously been £750)
- creditors must have sought proposals for payment, giving debtors 21 days for a response before proceeding with a Winding Up Petition.
- The debt is not a debt in respect of rent or any similar payment due under a business tenancy which is unpaid due to the financial impact of the pandemic.
What will be welcome news for creditors is likely to present pressure for some debtor companies who are still feeling the financial impact of the pandemic.
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