Q&As

Can a creditor prove for its debt and make a claim in the insolvency process after the bar date?

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Produced in partnership with Caroline Clark
Published on LexisPSL on 06/09/2019

The following Restructuring & Insolvency Q&A produced in partnership with Caroline Clark provides comprehensive and up to date legal information covering:

  • Can a creditor prove for its debt and make a claim in the insolvency process after the bar date?

Can a creditor prove for its debt and make a claim in the insolvency process after the bar date?

Proving a debt is the term given in insolvency legislation for the process by which a creditor formally makes a claim for the outstanding debt to the insolvency practitioner (IP) who is the office-holder in the case concerned. This claim, once accepted by the IP, will rank for dividend should there be sufficient realisations in the insolvent estate for payment of a dividend to unsecured creditors.

A creditor owed less than £1,000 is owed a small debt under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 14.1. Creditors owed small debts are deemed to have proved their claim without the need to submit a formal proof of debt under IR 2016, SI 2016/1024, r 14.3.

Creditors may prove their claims at any time. The more pressing question is whether a creditor can prove for its debt and rank for dividend in

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