A note on who is affected by the Insolvency Rule changes.

The changes set out below are primarily procedural, they affect how insolvency practitioners work rather than the rights or obligations of business owners directly. If you are a director, founder, or creditor, you are unlikely to need to know the detail.

That said, insolvency processes have a habit of becoming relevant at short notice, and understanding the landscape, even at a high level, helps you ask better questions and make faster decisions if the time comes. We have written this with that reader in mind.

New insolvency rules land on 22 June, what business owners should know

On 22 June 2026, the Insolvency (England and Wales) (Amendment) Rules 2026 come into force. For most business owners, insolvency law sits in the background, something you hope never becomes relevant. But if your business is growing, taking on debt, or working with creditors and suppliers, understanding how these rules work matters more than you might think.

Here are the five changes worth knowing about, explained in simple terms without the jargon.

The threshold for High Court bankruptcy petitions has increased significantly

Previously, a creditor could petition the High Court in London for bankruptcy once a debt reached £50,000. That threshold has now risen to £500,000.

In practice, this means petitions for debts below £500,000 will need to go through the County Court instead. For creditors, this affects speed and process. High Court proceedings have typically offered faster turnaround times and more direct access to court staff, advantages that will now only be available for larger debts. If you are a creditor pursuing a significant debt, this change is worth discussing with your adviser early.

Filing paperwork just got simpler

A small but sensible change: practitioners no longer need to file multiple copies of the same document with the court. Previously, something like a Notice of Appointment of Administrator required three copies. One copy, filed electronically (ce-filed), is now sufficient.

Fax delivery is also being removed from the rules it is a method that had already become largely obsolete in practice.

These are procedural housekeeping changes, but they reduce potential friction in what are already complex processes.

The Notice of Appointment of Administrator no longer needs to include the time and date

When an administrator is appointed, a Notice of Appointment is filed electronically  with the court. The rules previously required that notice to include the specific time and date of appointment.

That requirement is now removed. The appointment itself is unaffected, this is a change to what the paperwork must say, not to the substance of the appointment. For business owners going through an administration process, or whose counterparties are, it is worth knowing that this detail will no longer appear on the notice, and that its absence should not indicate or present a problem.

Clarity on what happens when an insolvency practitioner needs to charge more than originally estimated

Insolvency practitioners work to a fee estimate agreed at the outset. When costs look likely to exceed that estimate, approval is needed before additional fees can be charged.

The amended rules clarify who must give that approval: the creditors’ committee if there is one, or the creditors who originally fixed the estimate.

The practical question this raises, the one that practitioners are actively discussing, is what happens when creditors do not engage with the process of lodging their claims in the liquidation or administration. In many insolvencies, particularly where the prospect of any return to creditors is low, getting creditors to respond to correspondence can be difficult. The rules are clearer on process, but the challenge of creditor engagement in lower-value cases remains a live issue.

The COMI test is now consistent across all relevant rules

COMI (Centre of Main Interests) is a legal test used to determine where insolvency proceedings should be opened, and whether foreign proceedings should be recognised in England and Wales.

Previously, different rules within the Insolvency Rules used slightly different versions of this test, which created ambiguity. The amendment aligns them, so the same standard applies whether you are opening proceedings, determining jurisdiction, or seeking recognition of foreign insolvency proceedings.

For businesses operating across borders, or with international creditors or subsidiaries, this consistency matters. It removes a potential area of dispute about which set of rules applies and on what basis.

What the new insolvency rules means for your business

Most of these changes are procedural, they affect how practitioners work rather than the fundamental rights of creditors or debtors. But insolvency law touches businesses at moments of real stress, and understanding the landscape helps you make better decisions.

If your business is dealing with unpaid debts, creditor pressure, or restructuring, the rules that apply to your situation may have just changed. Taking early advice is almost always better than waiting until options narrow.

Tania Clench is Head of Restructuring & Insolvency at Farringford Legal. She advises owner-managed and fast-growing businesses across England and Wales on restructuring, insolvency, and financial distress.