Commentary on Sections Position of creditors Section 124: Ability for creditors to opt not to receive certain notices: company insolvency and Section 125: Ability for creditors to opt not to receive certain notices: individual insolvency
727.Creditors are kept informed of the progress of insolvency proceedings by way of notices, such as the results of decision making processes, progress reports, and receipts and payments accounts from the office holder.
728.These sections amend the Insolvency Act 1986 by providing that, where the rules require notices to be given to a company’s, or an individual’s creditors, the rules will be able to state that these will not need to be sent to creditors who have opted out of receiving such notices
729.Creditors who have opted out will still receive notices of any intended dividends. They will be able to opt back in to receiving correspondence at any time.
730.Section 124, which applies to company insolvency, will apply to England and Wales and Scotland, and section 125, which applies to individual insolvency, will apply to England and Wales.