Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Collections UsingThe Insolvency Act 1986          Rob SurridgeHead of Commercial Debt Recovery
Advantages•   Very Fast•   A certain date in the Debtors mind•   Lower “small claims” limit•   Availability of CFA and Ins...
Test of Insolvency• S123 Insolvency Act 1986  – Served a statutory demand, or  – HCEO returns writ of fi-fe  – Sheriff ret...
Demand Letter•   A demand in writing•   Giving 2 clear days to pay or set out defence•   Sets out consequences for non com...
Winding Up Petition•   Filed with the High Court•   Based on the proof of insolvency•   Gives time and date of hearing•   ...
Statutory Demands• Prepared by the creditor, not the court• Personal service on the debtor at his/her  home• Gives 18 days...
Bankruptcy Petition•   Filed with the County Court•   Based on the proof of insolvency•   Gives time and date of hearing• ...
Post Insolvency• The Insolvency Service is appointed• They call in the assets of the debtor• They may appoint an IP• They ...
Upcoming SlideShare
Loading in …5
×

Collections Using The Insolvency Act 1986

779 views

Published on

An overview of the process of collecting debt using bankruptcy and winding up

  • Be the first to comment

  • Be the first to like this

Collections Using The Insolvency Act 1986

  1. 1. Collections UsingThe Insolvency Act 1986 Rob SurridgeHead of Commercial Debt Recovery
  2. 2. Advantages• Very Fast• A certain date in the Debtors mind• Lower “small claims” limit• Availability of CFA and Insurance
  3. 3. Test of Insolvency• S123 Insolvency Act 1986 – Served a statutory demand, or – HCEO returns writ of fi-fe – Sheriff returns on decree (SCOT) – Certificate of unenforceability (NI) – “some other reason”
  4. 4. Demand Letter• A demand in writing• Giving 2 clear days to pay or set out defence• Sets out consequences for non compliance• Establishes a rebuttable presumption of insolvency
  5. 5. Winding Up Petition• Filed with the High Court• Based on the proof of insolvency• Gives time and date of hearing• Is advertised in the London Gazette• May only be withdrawn if the court agrees
  6. 6. Statutory Demands• Prepared by the creditor, not the court• Personal service on the debtor at his/her home• Gives 18 days to apply to court if disputed• Gives 21 days to pay• Establishes a rebuttable presumption of insolvency
  7. 7. Bankruptcy Petition• Filed with the County Court• Based on the proof of insolvency• Gives time and date of hearing• Is not advertised
  8. 8. Post Insolvency• The Insolvency Service is appointed• They call in the assets of the debtor• They may appoint an IP• They report to the creditors at the end of the appointment• A dividend may be awarded to the creditors

×