Q&As

Can an unsecured creditor assign its debt in an administration estate?

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Published on: 05 November 2019
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A party wishing to file a claim for their debt in an administration must submit a written claim to the administrator. The document by which they seek to establish their claim is called their proof of debt. A creditor who claims is referred to as ‘proving’ for their debt, and the document by which they seek to establish their claim is called their proof.

The rules applicable to proving a debt under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 are found in IR 2016, SI 2016/1024, rr 14.2–14.25 regardless of whether the insolvency proceeding in which the proof is made is an administration, winding up or bankruptcy proceeding. See Practice Note: Proof of debt.

Each creditor will need to provide specific information under IR 2016, SI 2016/1024, r 14.4, which, among others, includes the particulars of how and when the debt

Eleanor Stephens
Eleanor Stephens

Solicitor

Eleanor qualified in 1998 into the insolvency team at ASB law. She became a partner in 2005, and went on to head up the Recovery & Insolvency team and latterly the Dispute Resolution team incorporating the R&I team. Whilst originally specialising mainly in contentious corporate insolvency matters, in recent years she also moved into the non-contentious arena, in particular specialising in advisory work and company administrations. For many years she led a team acting for the Department of Business Innovation and Skills in disqualifying company directors for the Secretary of State. Eleanor joined Lexis Nexis in February 2011 to set up the Lexis PSL Restructuring & Insolvency product, heading up a team of in house lawyers writing on line content for lawyers and insolvency practitioners. Eleanor now works as a freelance solicitor, including writing for Lexis Nexis.

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Jurisdiction(s):
United Kingdom
Key definition:
Proof of debt definition
What does Proof of debt mean?

A party wishing to reclaim their debt must submit a written claim known as a proof of debt.

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