Rejection of proof of debt—the position under the Insolvency (England and Wales) Rules 2016
Produced in partnership with South Square Chambers

The following Restructuring & Insolvency practice note produced in partnership with South Square Chambers provides comprehensive and up to date legal information covering:

  • Rejection of proof of debt—the position under the Insolvency (England and Wales) Rules 2016
  • Insolvency (England and Wales) Rules 2016
  • Rejection of proof
  • Double proof and guarantees
  • Double proof
  • Guarantees—creditor’s proof
  • Guarantees—guarantor’s proof

Rejection of proof of debt—the position under the Insolvency (England and Wales) Rules 2016

Insolvency (England and Wales) Rules 2016

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 to 14.25 regardless of whether the insolvency proceeding in which the proof is made is an administration, winding-up or bankruptcy proceeding.

Rejection of proof

As far as creditors are concerned, office-holders must endeavour to ascertain all the debts and liabilities of the company/individual, and they must deal with all the proofs of debt submitted to them by admitting them or rejecting them or requiring further evidence in support of them (see Re Shruth).

A proof may be admitted for dividend either for the whole amount claimed by the creditor or for part of that amount.

In adjudicating whether a proof is admitted or rejected, the office-holder acts in a quasi-judicial capacity. An office-holder has the power to enquire as to the consideration for a judgment debt when adjudicating upon a proof.

If the liquidator/administrator/trustee in bankruptcy rejects a proof in whole or in part, they shall prepare a written statement of their reasons for doing so, and send it is as soon as reasonably practicable to the creditor. The statement should advise the creditor that they may appeal against the decision. An office-holder

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