South Square Chambers

This Practice Note, produced in partnership with South Square, looks at the cashflow and balance sheet tests in light of the Eurosail case and also how the two tests are relevant in practice.

This Practice Note, produced in partnership with South Square, considers a creditor’s remedy if their proof of debt has been rejected by an office-holder. It details how a creditor may appeal against that decision, what process must be followed in order to do so, and what the potential outcome may be. It should be read in conjunction with Practice Note: Rejection of proof of debt.

This Practice Note, produced in partnership with South Square and BDO LLP, discusses how a creditor may vote at a meeting by proxy rather than personal attendance and the formalities surrounding this.

This Practice Note, produced in partnership with South Square and BDO LLP, looks at creditors’ meetings in relation to the voting on and approval of a scheme of arrangement (or Part 26 scheme or s 895 scheme). It looks at the court’s powers to call the meeting, the requirements under the practice statement, calling and constitution of the meeting, quorum, the role of the chairman, valuation, voting, and majority requirements.

This Practice Note, produced in partnership with South Square & BDO, looks at the position of foreign creditors and foreign currency debts in an English insolvency.

This Practice Note, produced in partnership with South Square, looks at formal creditors’ committees in bankruptcy.

This Practice Note, produced in partnership with South Square and BDO, sets out the function and make up of formal creditors’ committees, and details their role in a formal insolvency process.

This Practice Note, produced in partnership with South Square, looks at debt in an insolvency process. It considers provable debts, future debts, contingent debts and secured debts. It looks at applicable case law and dealing with different types of debt.

This Practice Note, produced in partnership with South Square and BDO LLP, looks at income payments orders (IPOs) made under section 310 of the Insolvency Act 1986 that allow trustees in bankruptcy to claim a bankrupt’s surplus income for the benefit of the bankruptcy estate. This Practice Note summarises who can apply for an IPO, and when, and how much a trustee in bankruptcy can claim as part of an IPO.

This Practice Note, produced in partnership with South Square and BDO LLP, considers who are bondholders, and why it may be beneficial for them to form a committee in order to protect their interests in a restructuring situation. It gives information on the formation and membership of such a committee, and what role they may be able to undertake.

This Practice Note, produced in partnership with South Square and BDO LLP, looks at set-off and its application in insolvency processes (bankruptcy, liquidation and administration), including when claims must be due, claims that are commensurable, mutual claims and the exceptions to set-off.

This Practice Note, produced in partnership with South Square and BDO LLP, looks at interim receivers in personal insolvency appointed under section 286 of the Insolvency Act 1986 in the period between the presentation of a bankruptcy petition and the making of a bankruptcy order.

This Practice Note, produced in partnership with South Square and BDO LLP, looks at the obligation to settle liabilities before the receipt of any dividend, which can be achieved by the contributories making a payment. It examines the general position and the position following a call in a liquidation. It looks at the position prior to a dividend, set off and the position where the contributory enters bankruptcy.

This Practice Note, produced in partnership with South Square, looks at what a proof of debt is and the procedure for a creditor to prove a debt (or file a claim) in a formal insolvency situation (ie administration, winding-up/liquidation or bankruptcy). It looks at when to file a proof, what should be contained within that proof and discusses how debts are assessed and valued by the office-holder.

This Practice Note, produced in partnership with South Square, looks at why a proof of debt from a creditor may be rejected by an office-holder. A proof may be admitted in part or in full, or may be rejected in its entirety. The office-holder must approve or reject proofs within a certain time frame. It should be read in conjunction with Practice Note: Creditor’s appeal against rejection of proof of debt.

This Practice Note, produced in partnership with South Square, considers the origins and scope of the anti-deprivation principle (the ADP) (formerly known as fraud on the bankruptcy laws or the rule in British Eagle) which prevent parties from contracting out of the statutory regime for the collection, realisation and distribution of an insolvent estate.

This Practice Note, produced in partnership with South Square and BDO LLP, considers the timing and size of distributions in insolvency. It considers when the office-holder will declare and distribute dividends among creditors and the procedures to be followed by an office-holder who intends to declare and pay a distribution, including notice and advertisement requirements, proofs of debt and payment of the dividend.

This Practice Note, produced in partnership with South Square, looks at the order of payments to creditors in administrative receivership. It includes discussion of: the treatment of free assets, assets subject to fixed and floating charges and secured debts generally, expenses, remuneration and distribution of surplus..

This Practice Note, produced in partnership with South Square, looks at the waterfall of payments (ie order of payments) in relation to bankruptcy. It looks at the position of preferential and secured creditors and the position where there is a surplus.

This Practice Note, produced in partnership with South Square, compares the order of payments to creditors in various insolvency processes: liquidation, administration, administrative receivership, company voluntary arrangements (CVAs) and bankruptcy and the key issues/considerations for each. It covers: the pari passu principle, preferential debts, the prescribed part under s 176A of IA 1986 , fixed and floating charges and secured debts generally, expenses, remuneration and distribution of surplus.