Joseph Evans, Cassidy Fan and Jessica Boxford write for New Law Journal on the future of insolvency: a digital asset revolution
The new Property (Digital Assets etc) Bill introduced into Parliament on 11 September 2024 will widen the definition of ‘property’ in general law.
In an article for New Law Journal, Joseph Evans, Senior Associate, Cassidy Fan, Trainee Solicitor, and Jessica Boxford, Knowledge Development Lawyer, consider the impact of the Bill on the law relating to insolvency.
The Bill will expand what property constitutes the insolvent estate. This means officeholders can, with increased certainty, exercise their statutory powers under the Insolvency Act 1986 (IA 1986) over digital and unconventional assets. This could potentially mean those assets could be realised, and creditors could receive a larger dividend from the distribution from the distribution of the insolvent’s estate.
However, the Bill also introduces additional costs and complexities due to the highly diverse and evolving nature of digital assets and the need for technological expertise. Insolvency Practitioners may face difficulties in tracking and recovering digital assets, and managing the volatility of these assets, which will necessitate a careful cost-benefit analysis.
You can read the full article in New Law Journal here (paywalled).
Related content:
The Property (Digital Assets etc) Bill: A Wider Category of Assets for the Insolvent Estate?
