A method of rescuing a company or disposing of its business and/or assets with protection from creditors.
An insolvency practitioner appointed by the holder of a floating charge entered into before 15 September 2003 (although there are exceptions to this cut off date), covering the whole, or substantially the whole, of a company’s property. Appointed to recover sums due to the secured lender.
The insolvency practitioner in office during an administration.
Order preventing the disposal of assets by a defendant pending the resolution of legal proceedings.
A person authorised by the county court to act privately for landlords and certain public bodies in the seizure of goods for unpaid rent, rates and taxes.
An officer of the county court who acts in the execution of warrants and seizure of goods on judgment debts of the county court. See also: sheriff’s officer.
Fidelity insurance for an insolvency practitioner.
A fixed charge granted over a moveable asset.
This Act sets out the circumstances in which a person can be disqualified from acting as a company director.
A request to the registrar of companies to provide information from a company’s public file.
The Act that provides the framework of current company law.
Court orders for the confiscation of assets representing the proceeds of crime.
Someone closely related to the insolvent company, including directors, the directors’ family members and subsidiary or associated companies.
Any person, business or organisation to whom the debtor owes money.
The right of separate government departments to be treated as a single entity for the purpose of setting off amounts due to and from an insolvent company or individual.
A document, issued by a company, normally granting security in exchange for borrowings.
Any person who owes money to another.
Anyone who holds the office of director, or acts in the management of a company as though a director, irrespective of title.
When an individual is discharged from bankruptcy, they are released from liability in respect of pre-bankruptcy debts.
A company is dissolved when removed from the companies’ register.
Seizure of goods for non-payment of rent, rates or taxes.
Same as distraint.
This Act includes provisions for the Department of Trade and Industry to pay certain claims of employees in an insolvency.
The seizure and sale of goods to satisfy a judgement debt.
Security granted by a company charging general assets in exchange for borrowing. The borrower may continue to deal with the assets in the ordinary course of business.
Running a company with intent to defraud creditors.
Where A owes B, B owes C and C obtains a judgement against B, C may apply for a garnishee order for A to pay C direct, by-passing B.
An operational business / the value of an operational business as distinct from the sum of the values of its individual assets.
The Act which provides the framework of current insolvency law.
A person licensed to accept appointment as office holder in a formal insolvency.
These provide the detailed working procedure of the Insolvency Act 1986.
A right to retain possession of assets or documents until the settlement of a debt.
The process of realising a company’s assets and distributing the proceeds to creditors. Can include:
- Members’ voluntary liquidation – this applies where the directors declare that the company is solvent, so that the creditorswill be paid in full.
- Creditors’ voluntary liquidation – this applies where the directors consider that the company is insolvent. The shareholders appoint a liquidator who has to be confirmed in office by the creditors.
- Compulsory liquidation – this applies where a creditor has petitioned the court for the winding-up of the company. The official receiver becomes liquidator, but may be replaced by an insolvency practitioner.
A shorthand term for a receiver of a property, or of a specified category of property, not being an administrative receiver; in practice appointed under the terms of a mortgage or charge document and not under the terms of the Law of Property Act 1925.
Breach of duty in relation to the funds or property of a company by its directors.
Security taken over land for the payment of a debt.
A lender to whom a mortgage is granted.
A borrower who mortgage their property.
A type of application to court.
- Wages: 4 months prior to insolvency – limited to £800 per employee
- Holiday pay: no limits
- Pension contributions: 4 months prior to insolvency (employee contributions), 12 months prior to insolvency (employer contributions to contracted out schemes).
A document enabling a person to vote on behalf of a company, partnership or individual at a meeting.
A person appointed to take possession of assets either with a power of sale or in a protective capacity. See also: administrative receiver.
A contractual term meaning that ownership of goods sold does not pass to the customer until the supplier has been paid.
A colloquial term for reservation of title, derived from an important Court of Appeal case, Aluminium Industrie Vaassen BV v Romalpa Aluminium Limited (1975).
A compromise or arrangement made under the authority of the Companies Act 1985 between a company and its creditors or members.
Lenders who have the benefit of mortgages, or fixed or floating charges over the assets of a borrower.
A granting of rights over assets by a borrower to protect a lender.
Where A owes B and B owes A and B is insolvent, only the net balance may be paid or claimed, in certain circumstances.
A person in accordance with whose directions or instructions the directors of a company are accustomed to act.
A sworn statement of the assets and liabilities of an insolvent company or individual.
Assuming the rights of a creditor following payment of that creditor’s claim.
The insolvency practitioner who implements a voluntary arrangement.
A person appointed by the sheriff, generally a solicitor, to take practical responsibility for the administration of the law in the county.
A person who has been made bankrupt and has not yet received discharge. See also: discharge of bankrupt.
A binding arrangement, supervised by an insolvency practitioner, between an insolvent company, partnership or individual and their creditors (see also company voluntary arrangement and individual voluntary arrangement).
Court order for the compulsory liquidation of a company.