The government has caved under pressure to change a policy which will ensure that an estimated £160m can be returned to creditors from insolvencies. In a u-turn the MoJ announced that insolvency litigation will still be exempt from the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act. The exemption was due to expire in April, but after trade bodies and MPs put co-ordinated pressure on justice minister Chris Grayling, he confirmed that the exemption will be maintained. Lobby groups claimed that if the exemption had expired in April as planned, it would have been impossible in many business insolvencies to fund legal action to reclaim debts owed by directors or third parties to creditors.....Read more here