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Scotland vs England: difference between insolvency processes

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An often asked question is the difference in the insolvency process between Scotland and England. Although the aim of each system is similar, the legislation between the two jurisdictions is different and this means that the processes are also different.

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Scotland vs England: difference between insolvency processes

  1. 1. Scotland vs England: difference between insolvency processes Similar aims but different processes
  2. 2. Why the difference?  Both are governed by The Insolvency Act 1986 BUT:  England has specific legislation  Scotland works on a “principle-approach” and case law plays a big role
  3. 3. What are the differences? In Scotland:  No Liquidator of last resort  No Law of Property Act Receiver  No statutory power to disclaim onerous property or contracts in an insolvency  No ability to agree fees in advance with creditors
  4. 4. What are the differences? In England:  Official Receiver is first appointed  Law of Property Act Receiver exists  Sections 178 or 179 of the Insolvency Act allows onerous property or contracts in an insolvency to be disclaimed  Fees can be agreed in advance with creditors
  5. 5. Want to know more? Visit: https://www.business-sale.com/insights/for- buyers/scotland-vs-england-difference-between- insolvency-processes-218140
  6. 6. The UK’s leading source of mid-market acquisition information and leading independent business for sale & distressed business listing service for over 20 years. You can contact the author, Chris St Cartmail at chris@business-sale.com Visit us at www.business-sale.com Call us on +44 208 875 0200

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