Q&As

Can a creditor issue a claim for a balance outstanding under a fixed-sum credit agreement, where the repayment term has expired, without issuing a default notice?

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Published on LexisPSL on 15/07/2019

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Can a creditor issue a claim for a balance outstanding under a fixed-sum credit agreement, where the repayment term has expired, without issuing a default notice?

The process by which a creditor makes a claim against a company or person subject to an insolvency procedure is known as proving a debt. The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 give prescriptive requirements for this process. For more information, see Practice Note: Proof of debt—the position under the Insolvency (England and Wales) Rules 2016.

The purpose of the proof of debt is to provide sufficient information to the officeholding insolvency practitioner who will be assessing the validity of the claim to enable them to make an accurate and correct decision. See also Practice Note: Rejection of proof of debt—the position under the Insolvency (England and Wales) Rules 2016.

IR 2016, SI 2016/1024, r 14.4 requires a proof of debt to include, inter alia, the name and address of the creditor, to be ma

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