The government has today announced that it is scrapping its plans to end the insolvency exception to the Jackson reforms from April this year (as we had reported here). This means that CFA success fees and ATE insurance premiums will continue to be recoverable in proceedings brought by liquidators, administrators, trustees in bankruptcy, and companies in liquidation or administration. Recoverability in most other claims was, of course, abolished from April 2013.
In a written statement to Parliament, the government said that the initial two-year delay for insolvency proceedings was to give insolvency practitioners and other interested parties time to prepare for and adapt to the changes. However, the government now agrees that more time is needed. The existing exception will therefore continue “for the time being”. The statement adds that the government will consider the appropriate way forward for insolvency proceedings and set out further details later in the year.