One in three insolvency claims won't proceed following LASPO change, survey finds

Lawyers and insolvency professionals believe changes to insolvency litigation will lead to 'unscrupulous or illegal behaviour' by directors who no longer fear the risk of legal action being taken against them.

A survey by Encompass Corporation found that four-fifths of respondents think that one in three cases where companies place themselves into insolvency while holding undeclared assets will not proceed to legal action due to a lack of funding available for investigation and prosecution.

The survey follows a change to the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), which until April this year allowed businesses to ins...

Jean Yves

IICJ

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