The new benefit of social media for Insolvency Practitioners

As part of the process of investigating the affairs of bankrupts and rogue directors, Insolvency Practitioners have always been able to peruse the Bankrupts notifications on Facebook, Twitter and other social media websites.  Now, Insolvency Practitioners have the power, when the bankrupts are not co-operating, to notify Bankrupts of orders made against them by simply posting court orders on their Facebook page.

In a recent decision, a District Judge was persuaded to allow a trustee to notify the Bankrupt that he had been ordered to appear before the court – by posting a notice on the Bankrupt’s Facebook account.

This is apparently the first time a Trustee has been allowed to use social media to post a notification in specified terms to a Bankrupt.  This decision is encouraging that courts are prepared to move with the times and embrace modern technology and new forms of communication. 

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Author  
Gareth Price  
Tel: +44 (0) 20 7186 1173
Email: gprice@moorfieldscr.com

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Moorfields is one of the UK's leading independent firms of restructuring and insolvency specialists. Our highly skilled teams include restructuring professionals and licensed insolvency practitioners who provide leadership, experience and high quality advice to companies and their stakeholders in financially distressed situations

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