Q&As

What rights does a creditor have in a members’ voluntary liquidation if their claim is rejected by the liquidator? What is the process to follow?

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Produced in partnership with Caroline Clark
Published on LexisPSL on 28/02/2018

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

  • What rights does a creditor have in a members’ voluntary liquidation if their claim is rejected by the liquidator? What is the process to follow?

What rights does a creditor have in a members’ voluntary liquidation if their claim is rejected by the liquidator? What is the process to follow?

Creditors now have virtually the same rights in both members' and creditors' voluntary liquidations as regards to the agreement of their claims as creditors. The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, Pt 14 gives the procedures for the agreement of creditors' claims and this applies to winding up proceedings regardless of their nature (ie whether or not the winding up is compulsory, creditors' or members' voluntary) unless specific rules state otherwise. For more information on this, 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].

It is not known why the liquidator has rejected the claim. Under IR 2016, SI 2016/1024, r 14.1, it is not necessary

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