Insolvency

2 Matter Plans Included

ALERTS - Nil
Full Commentary - Individual Insolvency
Reference materials
- Electronic Signing and Witnessing
- Looking to the Future
- Further information
Overview

The structure of insolvency laws in England and Wales stems from the Cork Review Report on Insolvency Law and Practice, which was published in 1982. It made several recommendations on how individuals and corporate entities should be treated when they are unable to pay their debts. A significant ...
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Summary of the process

The usual steps in acting for a client in an insolvency matter are:
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A. Getting the matter underway
- File cover sheet - Individual insolvency
- To do list - Individual insolvency
- First steps
- Retainer instructions - Individual insolvency
- Compliance documents
  - Client Due Diligence and Anti-money Laundering Guidance
  - Client Details, Identity Verification and Source of Funds
  - Conflict of interest check
  - Client and matter risk assessment
  - If required - Reporting an issue
    
    Anti-money laundering internal disclosure
- Initial letter to client enclosing Client Care and Terms of Business
- Enclosures for initial letter to client
  - Client care information
  - Terms of business
  - Scope of work - Individual insolvency
- Time and costs estimates
- If required - Letter to client varying the Client Care and Terms of Business
  - Letter to client varying the Client Care and Terms of Business
- General deeds, agreements, statements, declarations, consents, and execution clauses
  - Deeds and agreements
  - Deeds
    
    Deed for general use
    
    Deed of assignment of agreement
    
    Deed of assignment of agreement with consent
    
    Deed of assignment of an insurance policy
    
    Deed of assignment of equitable interest in residential land
    
    Deed of gift
    
    Deed of guarantee
    
    Deed of release
    
    Deed of release and grant
    
    General deed of indemnity
    
    Library of standard clauses for deeds
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Agreements
    
    Agreement for general use
    
    Boundary agreement
    
    Confidentiality agreement
    
    Construction agreement
    
    Heads of agreement
    
    Library of standard clauses for agreements
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Statements and declarations
    
    Statement of truth
    
    Statement of truth - High Court
    
    Statutory declaration
    
    Statutory declaration of solvency
    
    Affidavit - General
    
    Exhibit sheet for affidavits - General
    
    Witness statement - Family matters
    
    Exhibit sheet to witness statement - Family matters
    
    Witness statement - Civil matters
    
    Exhibit sheet to witness statement - Civil matters
  - Execution clauses
    
    Execution clauses - Agreements and contracts
    
    Execution clauses - Deeds
    
    Execution clauses - Overseas companies
  - Consents
    
    If required - Personal data consent - General
    
    Letter to client enclosing consent - General
    
    Letter to third party enclosing consent - General
    
    General letter enclosing client consent
    
    General letter enclosing third party consent
    
    Consent to provide information - General
    
    Consent to provide information - General - Third party
    
    If required - Personal data consent - Health professional
    
    Letter to client enclosing consent - Health professional
    
    Letter to third party enclosing consent - Health professional
    
    Letter to doctor enclosing client consent
    
    Letter to doctor enclosing third party consent
    
    Consent to provide information - Health professional
    
    Consent to provide information - Health professional - Third party
    
    Change of name
    
    Change of name deed for an adult - Concise
    
    Change of name deed for a minor - Concise
    
    If required - Enrolment by an adult
    
    Change of name deed for an adult - For enrolment
    
    Statutory declaration - Enrolment of adult change of name deed
    
    Notice for the London Gazette on the change of name of an adult
    
    Consent to enrolment of change of name of an adult
    
    If required - Enrolment by a minor
    
    Change of name deed for a minor - For enrolment
    
    Statutory declaration - Enrolment of minor change of name deed
    
    Affidavit of best interest for the change of name of a minor
    
    Consent to enrolment of change of name of a minor
B. Gathering information
- Letter to client enclosing statement of affairs for completion
- Statement of affairs - Individual insolvency
- Letter to client requesting information and documents
- Letter to client enclosing comparison of options for individuals
- Enclosure - Comparison of options for individuals
- Letter to client explaining various ways to deal with debt
- Letter to client enclosing consent to provide information to insolvency practitioner
- Consent to provide information - General
- Letter to client requesting details of rent and copy of tenancy agreement
- Consent to provide tenancy agreement
- Letter to client’s landlord requesting tenancy agreement
- Letter to client’s estate agent requesting tenancy agreement
- Letter to client requesting details of pension
- Letter to client requesting details of home ownership
C. Pre-insolvency matters
- General insolvency matters
  
  Once the formal insolvency process begins, the assets of the debtor fall under the control of an appointed office holder and overall supervision of the Insolvency Service. The appointed office holder will be an insolvency practitioner or the official receiver. Their role is essentially to realise ...
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- Comparison of options for individuals
  
  The following provides a comparison of individual voluntary arrangements, debt relief orders, and bankruptcy.
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- Letter to client advising an insolvency practitioner has been requested
- Letter to insolvency practitioner requesting availability
- Letter to client advising an insolvency practitioner has been appointed
- Statutory demands
  - Statutory demands
    
    A statutory demand is a formal way of demanding payment of a debt. It is a pre-cursor to insolvency proceedings and can be issued against individual debtors, partnerships, and corporate entities. In response to a statutory demand the debtor has three options. They can:
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  - Letter instructing process server
  - Letter to debtor serving statutory demand
  - Letter to client confirming the statutory demand was served
  - Letter to debtor serving bankruptcy petition
  - Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for liquidated sum payable immediately
  - Statutory demand under Section 268(2) of the Insolvency Act 1986. Debt payable at future date
  - Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for liquidated sum payable immediately following a judgment or order of the court
  - Creditor’s bankruptcy petition on failure to comply with a statutory demand for a liquidated sum payable immediately
  - Creditor’s bankruptcy petition on failure to comply with a statutory demand for a liquidated sum payable at a future date
  - Creditor’s bankruptcy petition where execution or other process on a judgment has been returned in whole or part
  - Letter to court filing documents
  - Statement of truth
  - Letter to court with certificate of service
  - Certificate of service
- The London Gazette
  
  The London Gazette, usually just referred to as the Gazette, is an official journal of records, consisting largely of notices that are required by law, although it also includes non-statutory notices. Insolvency is one area in which statutory notices are required and the Gazette includes corporate ...
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D. Debt respite schemes
- Debt Respite Scheme
  
  The Debt Respite Scheme provides breathing space for individuals in debt by providing for a moratorium period that prohibits creditors enforcing their debts while they seek advice and look to make a financial plan. The scheme was enacted by The Debt Respite Scheme (Breathing Space Moratorium and ...
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- Breathing space moratorium
  
  An application for a breathing space moratorium is made under r 23 of The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. Prior to making an application, the debtor obtains advice as to the suitability, conditions, and ...
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- Mental health crisis moratorium
  
  The definition of a mental health moratorium provided by r 28 of The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 is that it is a one in respect of a debtor who is receiving mental health crisis treatment. Mental ...
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- Letter to client explaining debt respite scheme moratoriums
- Letter to client enclosing details of debt respite scheme moratorium
- Enclosure - Breathing space moratorium
- Enclosure - Mental health crisis moratorium
- Letter to client seeking confirmation of eligibility for a breathing space or mental health crisis moratorium
- Statement of affairs - Individual insolvency
- Letter to debt advice provider making an application for a moratorium
- Letter to petitioning creditor requesting a stay of an existing bankruptcy petition
- Letter to petitioning creditor enclosing application for a stay of an existing bankruptcy petition
- Letter to client advising start and duration of moratorium
- Letter to creditor advising start and duration of moratorium
- Letter to potential creditor giving notice of moratorium
- Letter to creditor following unlawful contact with debtor during moratorium
- Letter to debt advice provider with reasons moratorium should not be cancelled following midway review
- If required - Acting for a creditor requesting a review
  - Creditor’s request for review of a moratorium
    
    A creditor can request that the debt advice provider carries out a review to determine whether it should continue or be cancelled in respect of some or all of the moratorium debts: r 17(1) of The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and ...
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  - Letter to debt advice provider requesting review of moratorium
  - Letter to debt advice provider after rejection of review giving notice of intention to apply to county court
E. Debt management plans
- Debt management plans
  
  A debt management plan enables a debtor to reach an agreement with their creditors. The aim is to help people manage such debts as credit cards, store cards, and loans. The agreement is informal between the debtor and their creditors and the debtor agrees to a monthly payment plan to satisfy their ...
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- Letter to client explaining debt management plans
- Letter to debt advice provider requesting services
- Letter to client confirming commencement of debt management plan
F. Administration orders
- Administration orders
  
  An administration order allows a debtor to make a payment each week or month towards their creditors. The payments are made to the debtor’s local court. The court divides the payment amongst the creditors. Those listed in the administration order cannot take any enforcement action. An application ...
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- Letter to client explaining administration orders
- Application for an administration order
- Letter to creditor giving notice of client’s administration order
- If required - Acting for an objecting creditor
  - Letter to personal insolvency provider objecting to debt being included in an administration order
  - Letter to creditor in response to objection to debt being included in administration order
G. Debt relief orders
- Letter to client enclosing consent to provide information to insolvency practitioner
- Consent to provide information - General
- Debt relief orders
  
  A debt relief order is a means by which individuals with low value debts, low income, and few assets can have some form of respite. The power to make a debt relief order is provided for by s 251A of the Insolvency Act 1986.
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- Letter to client explaining debt relief orders
- Letter to debt advice provider requesting availability for an application for a debt relief order
- Letter to client confirming debt adviser has been instructed
- Letter to client explaining obligations following debt relief order
- Letter to official receiver providing further information and documents
- Letter to official receiver challenging refusal to make a debt relief order
- Letter to creditor giving notice of debt relief order
- Letter to potential lender giving notice of debt relief order
- Letter to official receiver setting out change of client’s circumstances following debt relief order
- If required - Acting for an objecting or challenging creditor
  - Letter to official receiver objecting to debt being included as a qualifying debt
  - Letter to personal insolvency practitioner giving notice of intention to make application challenging debt relief order
- Debt relief restrictions orders
  - Letter to debt advice provider enclosing client’s financial details
  - Letter to official receiver requesting a debt relief restrictions order
  - Letter to official receiver with grounds and evidence against a debt relief restrictions order
  - Letter to client with hearing date for application for a debt relief restrictions order
  - Letter to official receiver acknowledging notification of intention to seek debt relief restrictions order and advising dispute
  - Letter to official receiver acknowledging notification of intention to seek debt relief restrictions order and advising acceptance
- Letter to creditor giving notice of discharge of debt relief order
H. Individual voluntary arrangements
- Letter to client enclosing consent to provide information to insolvency practitioner
- Consent to provide information - General
- Individual Voluntary Arrangements
  
  An individual voluntary arrangement is a formal agreement between a debtor and their unsecured creditors to pay off some or all their debts in final settlement by making regular payments over a period. An insolvency practitioner works with the debtor to draft a proposal to put before the creditors. ...
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- Letter to personal insolvency practitioner requesting they act as nominee
- Letter to personal insolvency practitioner enclosing statement of affairs for individual voluntary arrangement
- Letter to client enclosing details of individual voluntary arrangements
- Enclosure - Individual voluntary arrangements
- If required - Interim order
  - Insolvency act application notice
  - Letter to creditor giving notice of application to court for interim moratorium
  - Letter to creditor giving notice of hearing of application for interim order
  - Letter to creditor enclosing interim order
  - Letter to court giving notice of approval of individual voluntary arrangement and requesting discharge of interim order
  - Letter to court giving notice of rejection of individual voluntary arrangement and seeking discharge of interim order
- Preparing the proposal
  
  The Insolvency (England and Wales) Rules 2016 provide guidance on the content and form of a proposal. Rule 8.2 provides that a proposal must:
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- Letter to client enclosing draft proposal for approval
- Draft proposal for puttting forward an individual voluntary arrangement
- Letter to personal insolvency practitioner nominee enclosing draft proposal
- Working with the supervisor
  
  Once an individual voluntary arrangement begins to take effect, the nominee steps into the role of supervisor: s 263 of the Insolvency Act 1986. The debtor is under a duty throughout the period of the individual voluntary arrangement to work with the supervisor. These duties include:
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- Letter to client confirming individual voluntary arrangement approved
- Letter to creditor giving notice of approval of individual voluntary arrangement
- If required - Acting for a creditor
  - Letter to creditor giving notice of application challenging creditors’ approval of an individual voluntary arrangement
  - Letter to personal insolvency practitioner supervisor giving notice of intention to make application to set aside individual voluntary arrangement
- If required - Replacing a nominee
  - Insolvency act application notice
  - Letter to personal insolvency practitioner nominee giving notice of intention to apply for nominee to be replaced
  - Letter to personal insolvency practitioner nominee giving notice of hearing of removal application
  - Letter to personal insolvency practitioner nominee enclosing order granting debtor’s application for their replacement
  - Letter to client confirming replacement of nominee
- Finishing the individual voluntary arrangement
  
  Once the individual voluntary arrangement has been finished, in the sense that all arrangements under it have been fulfilled, the debtor is effectively discharged from the debts that the arrangement included. The supervisor sends a Certificate of Completion to the debtor. Any debts that were not ...
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- Letter to client confirming individual voluntary arrangement has ended
I. Bankruptcy
- Bankruptcy
  
  Bankruptcy is a formal process to manage the debts of the individual. In the past, bankruptcy was a criminal offence. Now, however, the insolvency regime that stemmed from the Insolvency Act 1986 encourages a rescue culture for debtors. The effect of bankruptcy in the modern world is that the ...
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- Preliminary steps for a bankruptcy petition
  
  It is not sufficient for a creditor to petition for a debtor’s bankruptcy merely on the grounds of an existing debt. The fundamental rule is that the creditor must show that a genuine debt is owed, and that the debtor is unable to pay.
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- Letter to client enclosing bankruptcy petition
- Letter to interim receiver enclosing statement of affairs
- Letter to client explaining interim process
- Statement of affairs - Individual insolvency
- Letter to client enclosing summary of bankruptcy process
- Enclosure - A summary of the bankruptcy process
- Letter to trustee in bankrutcy enclosing client’s statement of affairs
- Effects of the bankruptcy order
  
  An individual being made bankrupt will want to know what assets will form part of their bankruptcy estate. This is not always the same as the debtor’s assets do not necessarily form part of the bankrupt’s estate. The distinction is important as those assets that do form part of the bankruptcy ...
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- Letter to client explaining effects of a bankruptcy order being made against them
- Letter to client enclosing bankruptcy order
- Letter to personal insolvency practitioner giving notice of change of debtor’s circumstances
- Letter to personal insolvency practitioner disputing assets or property vested in trustee
- Letter to creditor giving notice of bankruptcy order
- Letter to client giving notice of debtor’s bankruptcy
- If required - Acting for a creditor petitioning for bankruptcy
  - Creditor’s petition
    
    A creditor’s petition is served pursuant to s 264 of the Insolvency Act 1986. The grounds of such are set out in s 267. A creditor’s petition must be in respect of one or more debts owed by the debtor, and the petitioning creditor or each of the petitioning creditors must be a person to ...
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  - Letter to personal insolvency practitioner enclosing proof of debt
  - Proof of debt - general form
  - Letter instructing process server
  - Creditor’s bankruptcy petition on failure to comply with a statutory demand for a liquidated sum payable immediately
  - Creditor’s bankruptcy petition where execution or other process on a judgment has been returned in whole or part
  - Statement of truth
  - Letter to court filing documents
  - Certificate of service
  - Letter to court with certificate of service
  - Letter to debtor serving bankruptcy petition
  - Letter to client enclosing summary of bankruptcy process
  - Enclosure - A summary of the bankruptcy process
  - Letter to client explaining effects on them of debtor’s insolvency
  - Letter to client explaining effects of a bankruptcy order being made against one of their debtors
  - Letter to personal insolvency practitioner giving details of charge over debt
  - Letter to personal insolvency practitioner disputing exclusion of debtor’s property vesting in trustee
- If required - Annulling a bankruptcy
  - Annulling a bankruptcy
    
    The court has the power to annul a bankruptcy order when it appears to the court that, on any grounds existing at the time the order was made, the order ought not to have been made: s 282(a). The court’s power under s 282(a) is discretionary, which means that even if the bankrupt has ...
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  - Letter to client stating that an application will be made to annul bankruptcy
  - Letter to creditor client giving notice of annulment of debtor’s bankruptcy
- Discharge of the bankruptcy
  
  The discharge of the bankruptcy will release the bankrupt from all the bankruptcy debts and any restrictions placed on them by the bankruptcy order: s 281. Discharge does not affect the right of any secured creditor to enforce their security for the payment of a debt from which the bankrupt is ...
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- Letter to court requesting proof bankruptcy has been discharged
- Letter to court requesting certificate of discharge
- Letter to creditor enclosing certificate of discharge
- Letter to client explaining discharge of bankruptcy
- Letter to creditor giving notice of discharge of bankruptcy
J. Finalising the matter
- Letter to client finalising the matter
- Example invoice
- Invoice recital - Individual insolvency
- Enclosure - Explaining the bill
- Closing the file
- File closing checklist
- File review form - General
Comments and suggestions for By Lawyers

ALERTS - Nil
Full Commentary - Corporate Insolvency
Reference materials
- Electronic Signing and Witnessing
- Looking to the Future
- Further information
Overview

Running a profitable business is challenging. Most businesses use credit at some point. While this allows the business to function and grow, the existence of debt can determine how it is run and its future. When a business takes on debt, it is generally envisaged that it will be paid off. However, ...
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Summary of the process

The usual steps in acting in a corporate insolvency matter include:
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A. Getting the matter underway
- File cover sheet - Corporate insolvency
- To do list - Corporate insolvency
- First steps
- Retainer instructions - Corporate insolvency
- Compliance documents
  - Client Due Diligence and Anti-money Laundering Guidance
  - Client Details, Identity Verification and Source of Funds
  - Conflict of interest check
  - Client and matter risk assessment
  - If required - Reporting an issue
    
    Anti-money laundering internal disclosure
- Initial letter to client enclosing Client Care and Terms of Business
- Enclosures for initial letter to client
  - Client care information
  - Terms of business
  - Scope of work - Corporate insolvency
- Letter to client enclosing statement of affairs for completion
- Statement of affairs - Corporate insolvency
- Time and costs estimates
- If required - Letter to client varying the Client Care and Terms of Business
  - Letter to client varying the Client Care and Terms of Business
- General deeds, agreements, statements, declarations, consents, and execution clauses
  - Deeds and agreements
  - Deeds
    
    Deed for general use
    
    Deed of assignment of agreement
    
    Deed of assignment of agreement with consent
    
    Deed of assignment of an insurance policy
    
    Deed of assignment of equitable interest in residential land
    
    Deed of gift
    
    Deed of guarantee
    
    Deed of release
    
    Deed of release and grant
    
    General deed of indemnity
    
    Library of standard clauses for deeds
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Agreements
    
    Agreement for general use
    
    Boundary agreement
    
    Confidentiality agreement
    
    Construction agreement
    
    Heads of agreement
    
    Library of standard clauses for agreements
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Statements and declarations
    
    Statement of truth
    
    Statement of truth - High Court
    
    Statutory declaration
    
    Statutory declaration of solvency
    
    Affidavit - General
    
    Exhibit sheet for affidavits - General
    
    Witness statement - Family matters
    
    Exhibit sheet to witness statement - Family matters
    
    Witness statement - Civil matters
    
    Exhibit sheet to witness statement - Civil matters
  - Execution clauses
    
    Execution clauses - Agreements and contracts
    
    Execution clauses - Deeds
    
    Execution clauses - Overseas companies
  - Consents
    
    If required - Personal data consent - General
    
    Letter to client enclosing consent - General
    
    Letter to third party enclosing consent - General
    
    General letter enclosing client consent
    
    General letter enclosing third party consent
    
    Consent to provide information - General
    
    Consent to provide information - General - Third party
    
    If required - Personal data consent - Health professional
    
    Letter to client enclosing consent - Health professional
    
    Letter to third party enclosing consent - Health professional
    
    Letter to doctor enclosing client consent
    
    Letter to doctor enclosing third party consent
    
    Consent to provide information - Health professional
    
    Consent to provide information - Health professional - Third party
    
    Change of name
    
    Change of name deed for an adult - Concise
    
    Change of name deed for a minor - Concise
    
    If required - Enrolment by an adult
    
    Change of name deed for an adult - For enrolment
    
    Statutory declaration - Enrolment of adult change of name deed
    
    Notice for the London Gazette on the change of name of an adult
    
    Consent to enrolment of change of name of an adult
    
    If required - Enrolment by a minor
    
    Change of name deed for a minor - For enrolment
    
    Statutory declaration - Enrolment of minor change of name deed
    
    Affidavit of best interest for the change of name of a minor
    
    Consent to enrolment of change of name of a minor
B. Pre-insolvency considerations
- Insolvency as a means of enforcement
  
  The Enforcement publication provides all the tools for enforcing a debt. However, when the debt remains unpaid, both the creditor and the debtor have options. Insolvency is a risky approach to use or threaten for enforcement of a debt. The risk is that the debtor will have other creditors and ...
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- Definition of corporate insolvency
  
  Corporate insolvency is governed by:
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- Statutory demands
  
  A statutory demand is a formal way of demanding debt payment. It is a precursor to insolvency proceedings and can be issued against individual partnerships and corporate entities. In response to a statutory demand the debtor has three options:
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- Letter to debtor serving statutory demand
- Statutory demand under Section 123(1)(a) or 222(1)(a) of the Insolvency Act 1986
- Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for liquidated sum payable immediately
- Statutory demand under Section 268(2) of the Insolvency Act 1986. Debt payable at future date
- Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for liquidated sum payable immediately following a judgment or order of the court
- Letter to client confirming the statutory demand was served
- Proof of debt - general form
- Insolvency act application notice
- Creditors getting paid
  
  Unless the company enters an arrangement with its creditors to pay its debts, and its deemed insolvent, it will enter liquidation, the effect of which is that the assets of the debtor come under the control of the liquidator. Creditors will receive funds when the assets are sold. This can take some ...
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- The Insolvency Service
  
  The Insolvency Service is an executive agency of the Department of Business and Trade. Its duties are to oversee all individual and corporate insolvencies, investigate companies and directors, and act as the prosecutor when wrongdoing has been discovered.
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- The official receiver
  
  The official receiver is a civil servant acting for the Insolvency Service. There is no single official receiver, but multiple office holders located with their teams in regional offices across the country. Their appointment is provided for by s 399 of the Insolvency Act 1986. As officers of ...
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- Insolvency practitioners
  
  In insolvency matters, a licensed insolvency practitioner is instructed to have the ongoing management of the process. Insolvency practitioners are officers of the court and are regulated by the Insolvency Service. They balance the interests of the creditors with those of the debtor. When ...
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- The London Gazette
  
  The London Gazette, usually just referred to as the Gazette, is an official journal of records. It consists largely of notices that are required by law, although it also includes non-statutory notices. Insolvency is one area in which statutory notices are required, and the Gazette includes ...
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- Letter to court filing Gazette notice and certificate of compliance
C. Priority of creditors
- Priority of creditors
  
  In the event of a liquidation, the order in which creditors’ claims are met is as follows:
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- Letter to insolvency practitioner indicating goods are subject to retention of title clause
- Letter to insolvency practitioner enclosing proof of debt
- Proof of debt - general form
D. Moratoriums
- Moratoriums
  
  A moratorium provides a period of breathing space for a company to seek advice and negotiate with creditors to reach an agreement on its recovery. Enforcement action is either stayed or prevented from starting. Moratoriums are described as being a debtor-in-possession process because, although it ...
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- Appointing a monitor
  
  The monitor’s role is to provide hands-off assistance to the company during the moratorium, rather than the more managerial and supervisory role that an insolvency practitioner has in other insolvency proceedings. Ahead of an application, the directors engage with an insolvency practitioner with ...
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- Letter to proposed insolvency practitioner monitor enclosing relevant documents
- Enclosure - Details of company’s assets and liabilities
- Enclosure - List and details of company’s creditors
- Giving notice of the moratorium
  
  Once the moratorium comes into force, the directors notify the monitor who notifies the other parties:
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- Letter to insolvency practitioner monitor giving notice of commencement of moratorium
- Notice publicising moratorium for displaying at company premises
- Wording of required information to be included in business documents
- Letter to insolvency practitioner monitor advising of intention to commence an insolvency process
- Library of forms for a moratorium
  - Notice of commencement of moratorium
  - Notice of extension of a moratorium
  - MT02 (Continuation) Notice of extension of moratorium
  - Notice of early end of moratorium
  - Notice of end of moratorium by a monitor
  - MT04 (Continuation) Notice of end of moratorium by a monitor
  - Notice of end of moratorium by a court
  - Notice of end of moratorium following disposal of application for extension by the court of following CVA proposal taking effect of being withdrawn
  - Court order permitting disposal of property of goods
  - Notice of appointment of replacement or additional monitor following court order
  - MT08 (Continuation) Notice of appointment of replacement or additional monitor following court order
  - Notice of monitor ceasing to act following court order
E. Company voluntary arrangements
- Company voluntary arrangements
  
  A company voluntary arrangement (CVA) is where a company enters into a formal arrangement with its creditors to pay its debts over a fixed period. The benefit from the company’s perspective is that it can continue to trade while it pays off its debts. A limited liability partnership can also enter ...
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- Starting the process
  
  The first task is to understand the business’ debts and, if a CVA can be arranged, whether the debts can be paid and the business can continue. If the directors consider a CVA the most appropriate course, they prepare a proposal for the intended nominee on which the nominee can make a report to the ...
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- Letter to insolvency practitioner seeking report for proposal of company voluntary arrangement
- Company voluntary arrangement proposal
- Enclosure - Company creditor details for company voluntary arrangement
- Letter to insolvency practitioner acknowledging receipt of report for company voluntary arrangement
- Library of forms for company voluntary arrangement
  - Notice of voluntary arrangement taking effect
  - Notice of order of revocation or suspension of voluntary arrangement
  - Notice of supervisor’s progress report in voluntary arrangement
  - Notice of termination or full implementation of voluntary arrangement
  - Notice of court order in respect of a voluntary arrangement
  - Name and address of insolvency practitioner (Continuation)
- If required - When a company voluntary arrangement fails
  - When a company voluntary arrangement fails
    
    If the company does not comply with the terms of the CVA, usually by not keeping up with the agreed payments, the CVA fails. The company can propose an alternative arrangement with its creditors, but on the basis that the earlier proposal would have been considered carefully by the creditors, they ...
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  - Letter to insolvency practitioner supervisor giving notice of potential one-off failure of arrangement
  - Letter to insolvency practitioner supervisor giving notice of potential complete failure of arrangement
  - Letter to insolvency practitioner supervisor proposing change to arrangement
  - Letter to supervisor confirming receipt of notice of potential failure of arrangement
  - Letter to supervisor following failure of arrangement setting out proposed next steps
  - Letter to supervisor accepting proposed change to arrangement
  - Letter to supervisor declining to accept proposed change to arrangement
F. Administration and receivership
- Administration
  
  Administration is another method by which a company or its directors seek to rescue a business. An administrator is appointed, either by a qualifying floating charge holder, the company’s directors, or by an order of the court on application by the company, its directors, or creditors. ...
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- Letter to proposed insolvency practitioner administrator enclosing relevant documents
- Statement of affairs - Administration
- Enclosure - Company creditor details for use in an administration
- Letter to creditor notifying them of administration
- Library of Companies House forms for administration and receivership
  - Administration application
  - Notice of administrator’s appointment
  - Notice of administrator’s appointment (Continuation)
  - Notice of statement of affairs
  - Notice of administrator’s proposals
  - Notice of extension of time to deliver administrator's proposals
  - Notice of extension of time to seek approval of administrator’s proposals
  - Notice of approval of administrator’s proposals
  - Notice of creditor’s decision on administrator’s proposals
  - Notice of revision of administrator’s proposals
  - Notice of result of creditors’ decision on revised administrator’s proposals
  - Notice of administrator’s progress report
  - Notice of appointment of replacement or additional administrator
  - Notice of order limiting disclosure of statement of affairs or proposals in administration
  - Notice of rescission or amendment of order limiting disclosure of statement of affairs or proposals in administration
  - Notice of an order to dispose of charged property in administration
  - Notice of resignation of administrator
  - Notice of order removing administrator from office
  - Notice of vacation of office when administrator ceases to be qualified to act
  - Notice of deceased administrator
  - Notice of extension of period of administration
  - Notice of automatic end of administration
  - Notice of end of administration
  - Notice of move from administration to creditors’ voluntary liquidation
  - Notice of move from administration to dissolution
  - Notice of court order in respect of date of dissolution
  - Notice of court order ending administration
  - Notice establishment of creditors’ or liquidation committee
  - Notice of change of membership of a creditors’ or liquidation committee
  - Notice of continuation of creditors’ committee in winding-up by court following administration
  - Notice of cessation of liquidation committee in winding-up when creditors paid in full
  - Notice of administrative receiver’s report
  - Notice of summary of receipts and payments by administrative receiver, receiver or receiver manager
  - Notice or order of disposal of charged property in administrative receivership
  - Notice of statement of affairs in administrative receivership
  - Notice of deceased administrative receiver
  - Notice of appointment of an administrative receiver, receiver or manager
- Notice of establishment of creditors’ or liquidation committee
- Notice of change of membership of a creditors’ or liquidation committee
G. Liquidation and winding up
- Winding-up petition
- Verification of the petition (Comp 2)
- Certificate of compliance
- Notice of persons intending to appear
- List of appearances (Comp 5)
- Petition by contributory
- Office-holder's winding-up petition
- Letter to client enclosing copy winding up order
- Letter to debtor serving winding up petition
- Certificate of service
- Letter to court filing documents
- Letter to court filing Gazette notice and certificate of compliance
- Letter to court with certificate of service
- Library of winding up forms
  - Notice of order of appointment of provisional liquidator in winding-up by the court
  - Notice of termination of appointment of provisional liquidator in a winding-up by the court
  - Notice of appointment of liquidator in a winding-up by the court
  - Notice of progress report in a winding-up by the court
  - Notice of order of court on appeal against secretary of state’s decision in a winding-up by the court
  - Notice of order for removal of liquidator by court in a winding-up by the court
  - Notice of final account prior to dissolution in a winding-up by the court
- Voluntary liquidation
  - Members’ voluntary liquidation
    
    Letter to creditor giving notice of intention of company to enter members’ voluntary liquidation
    
    Declaration of solvency - Members’ voluntary liquidation
    
    Notice of statutory declaration of solvency
    
    Letter to creditor giving notice that company has entered into members’ voluntary liquidation
    
    Resolution for winding up - Members’ voluntary liquidation
    
    Notice to creditors - Members’ voluntary liquidation
    
    Letter to creditor enclosing notice to creditors
    
    Appointment of liquidators
  - Creditors’ voluntary liquidation
    
    Notice of meeting of creditors - Creditors’ voluntary liquidation
    
    Appointment of liquidators
    
    Letter to creditor enclosing notice to creditors
    
    Resolution for winding up - Creditors’ voluntary liquidation
    
    Statement of affairs - Creditors’ voluntary liquidation
    
    Letter to client enclosing statement of affairs for completion
  - Library of forms for voluntary liquidation
    
    Notice of appointment of liquidator voluntary winding up (members or creditors)
    
    600 (Continuation) Notice of appointment of liquidator in a members’ or creditors’ voluntary winding up
    
    Notice of statutory declaration of solvency
    
    Notice of statement of affairs
    
    Notice of progress report in voluntary winding-up
    
    Notice of order deferring the date of dissolution in MVL or CVL
    
    Notice of order limiting disclosure of statement of affairs in CVL
    
    Notice of liquidator’s resignation in MVL or CVL
    
    Notice of removal of liquidator by creditors
    
    Notice of loss of qualification as insolvency practitioner in MVL and CVL
    
    Notice of deceased liquidator in MVL and CVL
    
    Notice of removal of liquidator by court in MVL or CVL
    
    Notice of removal of liquidator by company meeting in MVL
    
    Notice of final account prior to dissolution in MVL
    
    Notice of final account prior to dissolution in CVL
    
    Notice of establishment of creditors’ or liquidation committee
    
    Notice of change of membership of a creditors’ or liquidation committee
    
    Notice of continuation of creditors’ committee in winding up by court following administration
    
    Notice of cessation of liquidation committee in winding up when creditors paid in full
- Winding up by the court
  - Creditor’s petition to wind up a company
  - Appointment of liquidators
  - Letter to client enclosing statement of affairs for completion
  - Statement of affairs - Winding up by the court
H. Insolvency-related investigations and post-insolvency matters
- Letter to client director advising to seek independent legal advice on grounds of conflict of interest
- Letter to client seeking details of transaction alleged by insolvency practitioner to be unlawful
- Letter to insolvency practitioner requesting details of allegations of unlawful transactions against client
- Letter to insolvency practitioner disputing allegations against client of unlawful transactions
- Letter to client informing them that allegations have been made against them in their role as former director of the company
- Letter to insolvency practitioner requesting details of allegations against client as director
- Letter to insolvency practitioner disputing allegations made against client in their role as former director of the company
I. Finalising the matter
- Letter to client finalising the matter
- Example invoice
- Invoice recital - Corporate insolvency
- Enclosure - Explaining the bill
- Closing the file
- File closing checklist
- File review form - General
Comments and suggestions for By Lawyers

This publication guides practitioners advising businesses and individuals in debt.

Overview

Precedents in this publication include:

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