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. For further information on the changes to the procedure for proving a debt brought about by IR 2016, see Practice Note: The Insolvency (England and Wales) Rules 2016—Part 14: Claims by and distributions to creditors in administration, winding-up and bankruptcy [Archived].

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

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