Qualifications and Remuneration An insolvency practitioner must be qualified to act under the Insolvency Act. He/she must be an individual who is duly authorised by a recognised professional body or other authority. He must maintain security for the performance of his duties for a general penalty of £250,000.00 and a specific penalty bond of up […]
Effect of Insolvency Proceedings The purpose of insolvency proceedings is to ensure that the assets of a company are available to its creditors for the purpose of proportionate distribution to them, according to their respective entitlements. For this reason, legal action and enforcement of court orders against a company is suspended upon commencement of insolvency […]
Proof of Debts This note sets out the procedure for creditor’s claims and the priority of entitlement to the proceeds of sale of an insolvent debtor’s assets. The rules in bankruptcy and company liquidation are broadly similar. The reference to “insolvency officer” refers to a liquidator, the Official Receiver or bankruptcy trustee, depending on the […]
Overview The Official Receiver has an obligation in a compulsory liquidation to investigate if the company has failed, and if so, to investigate the causes of the failure. He must also investigate the dealings and affairs of the company generally. He must make an application to Court on the outcome of the investigations, if he […]
Overview EU law provides that the insolvency law of the country of the debtor’s “centre of main interests” must be recognised and enforced by other EU countries. In the case of both an individual and a company, the State where he or it has his or its centre of main interests, will determine the insolvency […]
Overview A receiver is one of a number of means by which a bank / mortgagee can enforce a mortgage. A receiver under a mortgage granted by an individual is often referred to as a “fixed charge” or LPA (Law of Property Act) receiver. This is to distinguish this kind of receiver from a floating […]
Administrative Receivers An administrative receiver is a receiver or manager over the whole or substantially the whole of the company’s assets appointed on behalf of the holders of a other floating charge or “debenture”. The right to appoint only applies to company floating charges granted before 15th September 2003. For floating charges created after 15th […]