Order of payments

Order of payments guidance:

This Practice Note will give a basic overview of what amounts to an administration expense and some of the case law on this topic. Expenses of an administration are...

Practice Note

This Practice Note provides an overview of the role and operation of the Financial Services Compensation Scheme (FSCS) and the ranking of deposits protected by it in the...

Practice Note

From 6 April 2017, the Insolvency Rules 1986 (IR 1986), SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024....

Practice Note

Although suppliers are generally unsecured creditors (unless they establish a valid retention of title (ROT) claim) they may be key to a successful turnaround or pre-pack...

Practice Note

Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146) As of exit day (31 January 2020) the UK is no longer an EU Member...

Practice Note

Provable debts The general rule as to what constitutes a provable debt in administration, winding-up and bankruptcy is set out in the IR 2016, SI 2016/1024, r 14.2(1)...

Practice Note

This Brexit Deposit Guarantee Schemes Directive 2014/49/EU (DGSD) quick guide details current UK legislation and retained EU legislation that will be amended and/or...

Practice Note

Introduction Set-off refers to claims that may be set-off against other claims. A set-off is the right of one party, Party A, who is owed money by another party, Party B,...

Practice Note

How did the problem arise? Lehman Brothers International Europe (in administration) (LBIE) was (rather unusually) a private unlimited company and was the UK subsidiary of...

Practice Note

What are business rates? Business rates are a tax on property used for business purposes. They are charged on most non-domestic properties, such as shops, offices and...

Practice Note

What is marshalling? Marshalling is where two or more creditors are owed money by the same debtor, and one creditor has more than one security whereas the other has...

Practice Note

In finance transactions, the terms 'netting' and 'set-off' are sometimes used interchangeably even though they are not the same thing. The confusion comes from the fact...

Practice Note

General Where the assets of a company in liquidation are insufficient to enable it to pay liabilities as well as the expenses of the liquidation, the contributories may...

Practice Note

This Brexit Deposit Guarantee Schemes Directive (EC) 94/19 (amended by Directive (EC) 2009/14) (DGSD) quick guide details current UK legislation, retained EU legislation...

Practice Note

This Brexit Deposit Guarantee Schemes Directive 2014/49/EU (DGSD) quick guide details current UK legislation, retained EU legislation and FCA and PRA regulatory rules and...

Practice Note

Creditors are often keen to establish proprietary claims as they create rights in rem (which attach to the property itself) rather than personal claims (which just attach...

Practice Note

This Practice Note considers the scope of the reflective loss rule. It addresses the background to and implications of the rule against reflective loss with reference to...

Practice Note

This Practice Note summarises a number of key and/or illustrative cases relevant to the rule against reflective loss. For further guidance on the background to and...

Practice Note

This Practice Note summarises a number of key and/or illustrative cases relevant to the rule against reflective loss. For further guidance on the background to and...

Practice Note

1 Set-off permitted by either party Each party may set off any amount that the other party owes it under this agreement[ or otherwise] against any amount it owes to the...

Precedents

This Practice Note sets out certain key cases and associated relevant content in relation to set-off. The cases are divided by topic area and include: • Principles of...

Practice Note

Introduction This Practice Note gives a basic overview of the anti-deprivation principle (the ADP), and difference between the anti-deprivation principle and the pari...

Practice Note

ARCHIVED: This Practice Note has been archived and is not maintained. The Insolvency Rules 2016—coming into force and changes The Insolvency (England and Wales) Rules...

Practice Note

The primary function of office-holders in personal and corporate insolvency is to collect in the assets belonging to a company or individual and to distribute these to...

Practice Note

Liquidation and bankruptcy When a sufficient fund of assets has been collected and realised, the liquidator/trustee in bankruptcy (trustee) may begin to discharge the...

Practice Note

There are five main types of set-off: • independent set-off (sometimes known as legal set-off or statutory set-off) • transaction set-off (also known as equitable...

Practice Note

The order of distribution of a company’s assets in administration is found in the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR...

Practice Note

Administrative Receivership The order of distribution in administrative receivership is not well-delineated in IA 1986 and (from 6 April 2017), IR 2016, SI 2016/1024, and...

Practice Note

After satisfying the claims of secured creditors, the trustee in bankruptcy (trustee) must distribute the remaining assets in accordance with the prescribed order of...

Practice Note

The order of distribution in liquidation, following the realisation of security by secured creditors (other than those with floating charges) for their benefit, is...

Practice Note