On 14 July 2026, the Insolvency Service published the Second Review of the Insolvency (England and Wales) Rules 2016 and the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018, which seeks views on the Insolvency (England and Wales) Rules 2016 (IR 2016) and the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018.
The consultation is published pursuant to the Secretary of State's obligation to review and report on IR 2016 at least every five years (Introductory rule 7 IR 2016). It follows the first review and report as to IR 2016, which was published on 5 April 2022 (First Review of IR 2016).
In summary, the consultation considers whether IR 2016 are fit for purpose and how they should be changed to reflect and accommodate evolving working practices, such as the electronic filing of court documents (Practice Directions 5C – CE-File electronic filing and case management system). Among other things, it requests responses to the following.
- Administrative and regulatory burdens – whether IR 2016 places a disproportionate burden on insolvency stakeholders. For example, the consultation notes the requirements for routine uncontested court applications, Gazette notices, and the timing, frequency and methods of communicating information in insolvency processes.
- Creditor committees – how rr 3.39, 6.19 and 10.76 IR 2016 as to forming creditor committees in administration, liquidation and bankruptcy could be improved to encourage creditor engagement. The consultation notes that, despite the benefit for creditors of direct access to the officeholder and the ability to hold them to account, in practice committees are rare.
- Out-of-court appointment of administrators by company or directors – changing rr 3.23 to 3.26 IR 2016 to clarify that, when a notice of appointment by a company or its directors is filed outside court business hours using electronic filing, it is treated as delivered (and the appointment takes effect) when the court next opens. The consultation notes that, although this is currently provided by r 1.46(2) IR 2016 and paragraph 6 Temporary Insolvency Practice Direction, there is still confusion as to whether such an appointment is valid (and when it is effective).
- Out-of-court appointment of administrators by QFCH outside court hours – amending rr 3.20 to 3.22 IR 2016 and the process of a QFCH appointing administrators outside court business hours to reflect modern working practices. For example, the QFCH is currently required to print a copy of the email filing the notice of appointment outside court business hours and 'take' it to court when the court next opens (otherwise the appointment ceases to have effect) (rr 3.20(9)(b) and 3.22(2)(b)). The consultation comments that such requirements are outdated, given the development of electronic filing.
- Creditors' decision to approve a CVA – extending the time limit under r 2.27 IR 2016 for creditors to consider a CVA proposal before the decision procedure to approve it. The consultation queries whether, in practice, the current maximum of 28 days gives creditors sufficient time to review a CVA (and, if desired, propose amendments to it).
- How to future-proof IR 2016 – how IR 2016 should be adapted for AI and digital assets. The consultation notes the recent proliferation of AI and asks what changes to IR 2016 could facilitate its use in insolvency proceedings, in order to ultimately reduce costs to creditors. The consultation also recognises the growth of digital assets and queries how IR 2016 should be changed to assist insolvency practitioners dealing with them, in particular the challenge of recovering intangible, remotely stored assets.
The full list of consultation questions is set out in Annex A to the Second Review.
Next steps
The Insolvency Service has asked for responses to the consultation by 7 October 2026 and will publish its report by 6 April 2027.
Any changes to IR 2016 identified in the report will be made by secondary legislation.
First published on the R&I News Service on 15 July 2026
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