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The Government has announced today that they have granted an extension of the temporary exemption of insolvency litigation from the 2012 Legal Aid, Sentencing and Punishment of Offenders Act “LASPO Act”).

The original exemption in respect of insolvency litigation, was due to expire in April 2015 meaning an overhaul in the way that funding for litigation is provided.  However, with this extension and without time limit, no win no fee agreements in insolvency proceedings will continue to operate on a pre-LASPO Act basis, meaning any conditional fee agreement, success fees and after the event insurance premiums will remain recoverable from the losing party.

We trust you will all agree that this is a welcome acceptance by the Government.

If you have any questions please do not hesitiate to contact corporate recovery lawyer Alice Pratt on 0113 336 3370 or alternatively email alice.pratt@clarionsolicitors.com