Dealing with an insolvent debtor
Dealing with an insolvent debtor

The following Local Government guidance note provides comprehensive and up to date legal information covering:

  • Dealing with an insolvent debtor
  • Proof of debt
  • What can be claimed in a proof of debt

STOP PRESS: The Insolvency (England and Wales) Rules 2016, SI 2016/1024, came into force on 6 April 2017, entirely replacing the Insolvency Rules 1986. For a summary of the main changes introduced see Practice Note: A summary of the key changes in the Insolvency (England and Wales) Rules 2016 [Archived].

This Practice Note is intended to provide guidance to a local authority on dealing with an insolvent debtor. Debts can arise from arrears of:

  1. council tax

  2. non domestic business rates (NNDR)

  3. sundry debts

  4. liabilities from property

  5. liabilities from social care provision, see Practice Note: Securing and enforcing community care liabilities

  6. financial penalties imposed on a landlord for breaches of Houses of Multiple Occupation Legislation and other provisions deriving from the Housing and Planning Act 2016, see Practice Note: Houses in multiple occupation (HMOs)—sanctions

owed by a debtor entering into a formal insolvency process—see table below for summary of the forms of insolvency that may be used by a debtor.

Individual Partnership Limited liability partnership (LLP) Company
bankruptcy administration administration administration
debt relief order