Personal insolvency

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Compulsory winding up of a company—the process and procedure

STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose

Key elements of a standstill agreement

When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the

What is a statutory declaration of solvency, and what happens if a false declaration of solvency is made

Statutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For

The pari passu principle and collection remedies for the office-holder—the position under the Insolvency (England and Wales) Rules 2016

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

Practice notes

Court-appointed receivers—when a court will appoint a receiver and who may be appointed

This Practice Note covers receivers who are appointed by the court, including the circumstances in which a court will appoint a receiver and who may...

Produced in partnership with John Hughes of Shakespeare Martineau LLP 30th Oct

Practice notes

The deemed consent procedure, decision-making procedure, and meetings—the position under the Insolvency (England and Wales) Rules 2016

The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) provide for a revised scheme for decision making in insolvency from 6 April...

Produced in partnership with Richard Bowles 23rd Oct

Practice notes

Covenant waivers and resets

One of the initial signs of distress is usually a covenant breach by the company. The lenders may agree to a simple waiver, which cures a temporary...

22nd Oct

Practice notes

Debt for equity swaps

A popular restructuring method is a debt for equity swap; financial creditors receive equity in the restructured vehicle in return for reducing or...

15th Oct

Practice notes

Transactions defrauding creditors—claims under section 423 of the Insolvency Act 1986

It is possible for a claim to be brought under section 423 of the Insolvency Act 1986 (IA 1986) against a company or individual following a...

15th Oct

In-house

Practice notes

Role, powers, functions and duties of a liquidator

Coronavirus (COVID-19)This content is affected by the coronavirus (COVID-19) pandemic. For further details, take a look at our Coronavirus (COVID-19)...

9th Oct

Practice notes

Practice Direction on Insolvency Proceedings

Coronavirus (COVID-19)This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and...

5th Oct

Practice notes

Effect of a moratorium in a company voluntary arrangement (CVA) on creditors and the company [ARCHIVED]

The Court of Appeal has made it clear in JCAM that a moratorium cannot be obtained through the back door by filing a notice of intention to appoint an...

27th Sep

Practice notes

Winding-up and administration searches for companies at the Central Registry

STOP PRESS: This Practice Note is being updated for the Corporate Insolvency and Governance Act 2020 (CIGA 2020), which introduces a new insolvency...

26th Sep

Practice notes

What is considered onerous property or contracts?

DisclaimerUnder sections 178 and 315 of the Insolvency Act 1986 (IA 1986), a liquidator or a trustee in bankruptcy (trustee) has the power to disclaim...

26th Sep

Practice notes

US ipso facto clauses

Ipso facto clauses definedContracts often contain provisions to the effect that the contracts will terminate upon the bankruptcy or insolvency of one...

25th Sep

Practice notes

Loan to value covenants

This Practice Note looks at:•the key features of loan to value (LTV) covenants•possible issues with calling an event of default based on a LTV...

25th Sep

Practice notes

Equitable accounting—how it works in practice

This Practice Note looks at equitable accounting, what it is, how and when it applies. It does not look at how the trustee in bankruptcy (trustee)...

25th Sep

Practice notes

Effect of equitable, contractual and structural subordination

Senior creditors will ensure that in addition to having higher security rights over junior creditors, juniors are also subordinated to them.Generally...

25th Sep

Practice notes

Proprietary claims

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

25th Sep

Practice notes

Cashflow and balance sheet tests for insolvency

IntroductionThis Practice Note will give a basic overview of the applicable tests for cashflow and balance sheet insolvency under section 123 of the...

25th Sep

Most recent Personal insolvency content

Practice notes

Discharge from bankruptcy

At the heart of the bankruptcy legislation is the concept of a bankrupt surrendering their estate for the benefit of creditors in return for...

25th Sep

Practice notes

Trustee in bankruptcy—remuneration and expenses

Trustee in bankruptcy’s remunerationThe trustee in bankruptcy (trustee) will usually look to the estate for their remuneration. The remuneration of...

25th Sep

Practice notes

The impact of bankruptcy on divorce proceedings

The impact that bankruptcy and divorce proceedings have on one another has been subject to several cases in both the bankruptcy and family courts....

25th Sep

Practice notes

Debt relief orders (DROs)

What is a DRO?DROs are 'a new and simplified way of wiping the slate clean for debtors who are too poor to go bankrupt.'A DRO is made in respect of...

25th Sep

Practice notes

Property that vests in the trustee in bankruptcy on bankruptcy and how the trustee in bankruptcy ascertains the extent of their interest in it

One of the main functions of the trustee in bankruptcy (trustee) is, in accordance with section 305(2) of the Insolvency Act 1986 (IA 1986), to get...

25th Sep

Practice notes

The equity of exoneration and how it applies in practice

This Practice Note looks at the equity of exoneration: what it is, and when and how it applies. It does not look at how the trustee in bankruptcy...

25th Sep

Practice notes

How a pension is dealt with in bankruptcy

The position of a personal pension on bankruptcyA bankrupt’s estate automatically vests in the official receiver (or an insolvency practitioner if...

25th Sep

Practice notes

Role, powers, functions and duties of the nominee and supervisor of an individual voluntary arrangement (IVA)

Who is the nominee/supervisor and what is their role in the individual voluntary arrangement?The nominee and the supervisor are key individuals in an...

25th Sep

Practice notes

Avoidance of general assignment of book debts (bankruptcy)

This Practice Note explains when a general assignment of book debts by a bankrupt prior to their bankruptcy is invalid. See also Practice Note:...

25th Sep

Practice notes

Income payments agreements (IPAs) under section 310A of the Insolvency Act 1986

An income payments agreement (IPA) is an alternative to an income payments order (IPO), used in circumstances where the bankrupt voluntarily agrees to...

25th Sep

Practice notes

Unwinding unlawful transactions in bankruptcy

General duties of the trustee in bankruptcyThe main function and duty of a trustee in bankruptcy (trustee) is to get in, realise and distribute the...

25th Sep

Practice notes

Effect and duration of bankruptcy restrictions orders (BROs)

Effect of a bankruptcy restrictions orderThe effect of a bankruptcy restrictions order (BRO) is to impose wide ranging restrictions on a bankrupt....

25th Sep

Practice notes

Bankruptcy restrictions undertakings (BRUs)

A bankrupt is discharged from bankruptcy one year after their bankruptcy commences, unless the court grants a suspension of that discharge by reason...

25th Sep

Practice notes

Debt management and relief for individual debtors

IntroductionPart 5 of the Tribunals, Courts and Enforcement Act 2007 (TCEA 2007) introduced new regimes for debt management and relief, although not...

25th Sep

Practice notes

Equitable accounting—how it works in practice

This Practice Note looks at equitable accounting, what it is, how and when it applies. It does not look at how the trustee in bankruptcy (trustee)...

25th Sep

Practice notes

The 'three-year rule' in bankruptcy under section 283A of the Insolvency Act 1986

The 'three-year rule' and why it appliesThe reforms introduced by the Enterprise Act 2002 (EnA 2002) included the insertion of a new section 283A into...

25th Sep

Practice notes

Conflicts in restructuring and insolvency

In any insolvency situation, there are a number of parties involved that require legal advice and, in certain circumstances, parties with common...

25th Sep

Practice notes

Comparison table of personal insolvency processes for dispute resolution practitioners

NoteThis table provides a summary of individual personal and debt management processes from a dispute resolution perspective. Name of processNature of...

25th Sep

Practice notes

The effect of a bankruptcy order on an individual voluntary arrangement (IVA), its assets, and the creditors

The gap in the insolvency legislationIt is a striking gap in the drafting of the insolvency legislation that the effects of the making of a bankruptcy...

25th Sep

Practice notes