Insolvency Debt in UK Law

Leading Cases
  • Re Nortel GmbH
    • Chancery Division
    • 10 Dic 2010

    I therefore conclude that the Toshoku principle does indeed establish as a general rule that where by statute Parliament imposes a financial liability which is not a provable debt on a company in an insolvency process then, unless it constitutes an expense under any other sub-paragraph in the twin expenses regimes for liquidation and administration, it will constitute a necessary disbursement of the liquidator or administrator.

  • Cambridge Gas Transport Corporation v Official Committee of Unsecured Creditors of Navigator Holdings Plc and Others
    • Privy Council
    • 16 May 2006

    But the domestic court must at least be able to provide assistance by doing whatever it could have done in the case of a domestic insolvency. The purpose of recognition is to enable the foreign office holder or the creditors to avoid having to start parallel insolvency proceedings and to give them the remedies to which they would have been entitled if the equivalent proceedings had taken place in the domestic forum.

  • Re Nortel GmbH ((in Administration)) and related companies
    • Supreme Court
    • 24 Jul 2013

    If these two requirements are satisfied, it is also, I think, relevant to consider (c) whether it would be consistent with the regime under which the liability is imposed to conclude that the step or combination of steps gave rise to an obligation under rule 13.12(1)(b).

  • Richard Dale Agnew and Another v The Commissioner of Inland Revenue and Another
    • Privy Council
    • 05 Jun 2001

    Once these have been ascertained, the Court can then embark on the second stage of the process, which is one of categorisation. If their intention, properly gathered from the language of the instrument, is to grant the company rights in respect of the charged assets which are inconsistent with the nature of a fixed charge, then the charge cannot be a fixed charge however they may have chosen to describe it.

  • Doorbar v Alltime Securities Ltd (No 1)
    • Court of Appeal (Civil Division)
    • 30 Nov 1995

    The context of the crucial words in r.5.17(3) is that there is a general prohibition on voting by the creditor with an unliquidated or unascertained claim, to which prohibition there is an exception if the chairman agrees. It is not an agreement on the value (that, in the voluntary arrangement, is for the supervisor who might arrive at a significantly higher value): the chairman only agrees to put on the debt an estimated minimum value.

  • Re Kaupthing Singer & Friedlander Ltd (No 2)
    • Supreme Court
    • 19 Oct 2011

    The function of the rule is not to prevent a double proof of the same debt against two separate estates (that is what insolvency practitioners call "double dip"). The rule prevents a double proof of what is in substance the same debt being made against the same estate, leading to the payment of a double dividend out of one estate. It is for that reason sometimes called the rule against double dividend.

  • Re Lehman Brothers International (Europe) ((in Administration))
    • Chancery Division
    • 14 Mar 2014

    There are, as I see it, a number of serious difficulties with this submission. First, on a natural reading of 2.88(7) it applies to a surplus in the hands of the administrator rather than in the hands of a subsequent liquidator. Read in its context, it seems to direct the administrator as to the application of the surplus which he holds.

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Legislation
  • Corporate Insolvency and Governance Act 2020
    • UK Non-devolved
    • 1 de Enero de 2020
    ...... (d) (d) a statement from the directors that, in their view, the company is, or is likely to become, unable to pay its debts, and . (e) (e) a statement from the proposed monitor that, in the proposed monitor’s view, it is likely that a moratorium for the company would ......
  • Small Business, Enterprise and Employment Act 2015
    • England & Wales
    • 1 de Enero de 2015
    ...... appointments relating to companies; to make provision about insolvency; to make provision about the law relating to employment; and for connected ...(b) arranges or facilitates the provision of debt or equity finance in the course of a business, or. (c) provides, arranges ......
  • The Insolvency (England and Wales) Rules 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ...... [Note: “bankrupt's estate” is defined in section 283]; . “bankruptcy application” means the bankruptcy application submitted by the debtor to the adjudicator requesting the making of a bankruptcy order against the debtor; . “bankruptcy file” means the file opened by the adjudicator ......
  • Bankruptcy (Scotland) Act 2016
    • Scotland
    • 1 de Enero de 2016
    ......(Scotland) Act 2007, Part 2 of the Home Owner and Debtor Protection (Scotland) Act 2010, the Bankruptcy and Debt Advice (Scotland) ... qualified creditor or qualified creditors only if the apparent insolvency founded on in the petition was constituted within 4 months before the date ......
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Books & Journal Articles
  • Wrongful Trading: An Impotent Remedy?
    • Núm. 4-1, Marzo 1996
    • Journal of Financial Crime
    • 38-46
    Improved creditor and community protection seemed attainable goals when Professor Daniel Prentice described s. 214 of the Insolvency Act (‘s. 214’) as ‘one of the most important developments in com...
    ...... y o f a paren t company' s responsibilit y fo r th e debt s o f it s subsidiarie s an d provid e a wa y t o dea l wit h ... n durin g th e transitio n fro m 'questionabl e insolvency ' t o 'immi - nen t insolvency' . Durin g thi s perio d th e ......
  • Seeking Shelter in Personal Insolvency Law: Recession, Eviction, and Bankruptcy's Social Safety Net
    • Núm. 44-3, Septiembre 2017
    • Journal of Law and Society
    Many legal systems understand consumer insolvency laws as social insurance, providing relief and a ‘fresh start’ to over‐indebted households who fall through gaps in the social safety net. Personal...
    ...... England and Wales in practice functions similarly, but in terms of legal principle and policy is ambivalent ± sometimes emphasizing household debt relief, other times creditor wealth maximization. This article assesses, in the context of novel debt prob- lems brought to prominence by recession ......
  • The German consumer bankruptcy law and moral hazard – the case of indebted immigrants
    • Núm. 28-2, Abril 2020
    • Journal of Financial Regulation and Compliance
    • 161-181
    Purpose: The purpose of this paper is to investigate to what extent the increased insolvency filings by migrants since the enactment of the consumer insolvency law in 1999 is associated with moral ...
    ...... of this paper is to investigate to what exten t the increased insolvency fi lings by migrants since the enactment of the consumer insolvency law ... may take place.Quantitative data were gathered to understand the debt pro fi le of migrant debtors, types of liabilit ies and creditors ’ ......
  • Mastication for the nation.
    • Núm. 2007, Septiembre - Diciembre 2007
    • Financial Management (UK)
    • Mangled metaphors - Mike Gerrard of Grant Thornton L.L.P. - Brief article
    ..."Commenting on the continuing problem of personal debt, Mike Gerrard, head of personal insolvency at Grant Thornton, says: 'In ......
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Law Firm Commentaries
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