Creditors Portal & Information | Harveys Insolvency & Turnaround

The adjudicator isn't a judge. They are a government official who works for the Insolvency Service & their role is to review & make decisions about an individual's petition to become bankrupt. 

A type of insolvency procedure which puts a company under the control of a licensed Insolvency Practitioner. See here for further information

A court order on the petition of a company, its director, liquidator or a creditor, placing a company that is, or is likely to become, insolvent under the control of an administrator in order to achieve the purpose of administration.

A licensed insolvency practitioner appointed by the holder of a floating charge. An administrative receiver's powers include the ability to carry on or sell the business & assets of the company comprised in the security to repay the secured & the preferential creditors. See here for further information. 

A licensed insolvency practitioner appointed in relation to a company to manage its affairs & to achieve the purpose of administration.

A report produced by the appointee in insolvency proceedings which accounts the progress of the proceedings, assets realised, the creditors' position, the costs & anticipated outcome. The information provided & the timing of the report are as stated by statue.

Property of value owned by the insolvent entity which will be sold by the appointee (liquidator or administrator).

The trade association for the UK's insolvency & restructuring professionals. Does not equate to a professional qualification but carries the right for a member to state MABRP or FABRP.

Bailiffs are now known as Enforcement Agents (EA). They are authorised by the Courts & granted powers to visit your business premises or homes to recover unpaid debts by way of payment or seizure of assets. They are required to have a current Enforcement Agents Certificate issued by the County Court which you can check on the Ministry of Justice EA register. 

They act on behalf of creditors with CCJs or High Court Writs or under a right to enforce a debt, such as a landlord's rights. The debtor pays the EA fees on top of the debt. The fees are set out in regulations & are fixed. Also see Enforcement Notice for useful information. 

An individual person against whom a bankruptcy order has been made by a Court.

The process of dealing with the assets, liabilities & a bankrupt (an individual).

An order made by a Court against an individual at a point where they are unable to pay their debts when they are due.

An application to the Court, made by a creditor or debtor, for a bankruptcy order to be made in relation to debt owed & unpaid by an individual. In the case of a creditor, it is a condition that the debt owed exceeds £750.

Enforcement action taken under the Taking Control of Goods Act (1988), in which a Landlord directly instructs an Enforcement Agent to recover rent owed for more than 7 days. The recovery action is limited to rent only & cannot include service charges or insurance. 

Also see Forfeiture, Bailiffs/Enforcement Agents /Enforcement Notices for related information  

A charge is a legal right registered against a company giving a creditor first rights to designated assets of the borrower. This is registered at the Registrar of Companies.

A charge can also be registered against an individual's or business's land or property which is registered at the Land Registry.

A government body that stores information on all the limited, plc or foreign registered companies & limited liability partnerships registered in the UK. The legal entity is obliged to file documents such as accounts & information about directors/shareholders. This information is available to the public. 

A legal procedure available to limited companies that gives time for it to repay its debts in part or full. The company can continue to trade during a CVA.  The Insolvency Practitioner acts as a supervisor. Please click here for further info 

A composition is an agreement between a party who owes money with their creditor(s) who consent to accept a lesser sum in satisfaction of the amount due.

The liquidation of a company via the Court, normally arising from a petition being presented to the Court by a creditor. Please click here for further information 

A CCJ can be made against you on the application to Court for monies due & unpaid to cause payment. An undefended application is likely to result in an automatic CCJ. An application can be made for disputed debts to cause the matter to be settled.  

The CCJ is the Court ordering you to pay the debt within an allocated time. If you fail to pay the creditor can take action such as instructing Enforcement Officers, issue a statutory demand or petition for your bankruptcy or winding up.

A party (corporate or individual) who is owed money.

A credit score, also known as a credit rating, is a number that reflects the likelihood of you paying credit back. The higher your credit score, the better your chances of being accepted for credit by banks, financial institutions & suppliers. Your score can become poor where you do not pay your debts on time or at all, applying for credit too often in a calendar year or having CCJs.

A credit score influences your chances of getting credit cards, loans & supplier credit. It applies to companies & individuals.

A small group of usually 3-5 creditors who are owed sums in an insolvency who volunteer to represent the interests of all creditors. Typically, they act as a sounding board for the insolvency practitioner. They can also be asked to approve resolutions on behalf of the wider creditor group. Creditors’ committees are rarely formed.

Please see Decision Procedure

The liquidation of a company incepted by its directors. Please click here for more information.

A document that is drawn up in relation to sums advanced by a creditor & secures the creditor's position over (specific) assets which is often referred to as a fixed & floating charge debenture. Also see ‘Charge’, ‘Fixed Charge, ‘Floating Charge’. 

A DMP is an informal agreement between an individual & his/her creditors to pay all their debts.

These are mostly handled by debt management companies or debt charities, not insolvency practitioners or the Official Receiver. Please click here for more information.  

A sum of money owed to you or  money you owe.

A formal process of dealing with personal debt where you cannot afford to pay your creditors in full. The total debts must be less than £20,000 & assets of less than £1,000. You must be able to afford to pay a fee of £90 & contributions to the debts for a period of no more than 12 months. At the end of the period the individual is debt free. 

Most student loans, child support payments, fines & debts incurred through fraud are excluded in a DRO & remain payable. 

An individual or company who owes money.

The process by which an insolvency practitioner asks creditors to make decisions in an insolvency proceeding. This is applied from the commencement of insolvency proceedings where a company is put into CVL or where an administrator seeks consent to proposals.

The decision procedure can be a virtual meeting, physical meeting, or by correspondence. 

Where appropriate an insolvency practitioner can make a decision to treat the matter as ‘deemed consent’. The decision is made by the passing of time & no or inadequate challenge being made to cause the alternative decision procedure. 

A decision procedure can evolve from deemed, virtual or correspondence to a physical meeting where it is sought in time by one of the following: - 

 10% of creditors in value 

 10% of creditors in number; or 

 10 creditors 

A Government department which runs the Insolvency Service in England & Wales. It has been formerly known as the DTI & BISS.

A person or a group of people who are responsible for the affairs of a limited company.  They are protected from liability for a company’s creditors if they act properly.

The restrictions for a bankrupt or DRO have come to an end. This is usually on the one year anniversary of the bankruptcy order or DRO. Exceptions apply to discharge where it is a criminal bankruptcy order, or a bankruptcy restriction agreement or order has been made in the intervening period, or the bankrupt has had repeated bankruptcy orders over specific periods.

Discharge does NOT revert assets subject to the bankrupt estate back to the bankrupt if they are not already sold.

A process that legally brings the life of a limited company to an end.  To start a dissolution process the limited company must have ceased trading for at least three months.

When sufficient assets are realised & costs provided for, the insolvency practitioner shall, where funds permit, make payments to  creditors in their respective priority rights. This may be pence in the £ on the sum owed.

The law which protects employees' rights where there is no contract or an employment contract is silent.

A Notice of Enforcement is the first stage of the enforcement process & gives 7 clear days to pay. Failure to take positive action in this time will result in enforcement. Your debt has then gone beyond the ability to dispute with the EA; you will need to pay it, then dispute it. If disputed you need immediate specialist legal advice. 

If you are unable to pay in full within the 7 days, the EA will still need to attend with a view to taking control of your goods, even if you make an offer to pay by instalments. The EA will seek to identify a list of your goods (an inventory) that may be sold if the debt is not paid. This process is called “taking control” & places your goods under the legal control of the EA. The EA can allow you to keep the goods at the address & a short time in which to raise cash. In this event you will have to sign a Control of Goods Agreement (CGA). This confirms that you will keep the goods safe & in the same condition, not to dispose of the goods, nor allow another CGA to be put in place, without notification. This is legally binding. If you do not sign the agreement, the EA will consider taking good immediately.

If you share your premises or have 3rd party goods the EA must give you or the owner time to evidence title. They are not entitled to enforce on other parties' goods. In most cases EAs do not have an automatic right to enter your premises. In cases where this applies the police can attend with them. Also see Bailiffs/Enforcements Agents.

A service provided by a financial institution which buys the right to an invoice for a % of its value from the service or goods provider. The invoice is assigned (transferred) to a financial institution & payment is collected directly by them. 

A form of security over specific assets preventing the debtor from dealing with the assets without the consent of the secured creditor (fixed charge holder). Fixed charge assets are commonly buildings & land or items with a unique identity such as a serial number. In a company it is usual for the company’s goodwill to be a fixed charge asset. 

A form of security granted to a creditor over general assets of a company. When a company becomes insolvent the floating charge usually crystallises. Floating charge assets are fluid assets such as cash, stock, WIP, chattels, book debts. 

A legal remedy available to landlords to instruct EA’s to re-enter their property for non-payment of rent without notice; this action ends the lease. The only remedy is for a tenant is to apply to the Court to re-instate the lease, but this also requires all rent arrears to be paid to the Court before a hearing. Landlords can only use this remedy when referred to in the lease agreement & where no other remedy such as CRAR has been used in the same quarter. Also see CRAR & Bailiffs or Enforcement Agents for relevant information. 

A legal commitment to repay a debt if the principal borrower fails to repay. It is common for directors to provide personal guarantees to lenders or suppliers who provide funding or supplies to their company.

A formal debt solution to pay back debts over a period of time. Please click here 

The most common definitions being:  

Cashflow test: Unable to pay debts as and when they fall due

Balance sheet test: Having insufficient assets to meet all debts 

The Insolvency Act 1986 is the legal framework for all matters relating to personal & corporate insolvency in the UK.

Licensed Insolvency Practitioners are qualified individuals who are authorised by a governing body (that is approved by the government regulator) to act as an office holder in formal insolvency proceedings.  

Properly authorised & licensed IPs who are appointed to act in insolvencies hold a current license (granted annual on 1 January), PI insurance, a bond & can be verified on their regulator's website. 

A government agency that helps to deliver economic confidence by supporting those in financial distress, tackling financial wrongdoing & maximising returns to creditors. The IS house divisions such as the OR & RPS.

A period of time in an IVA or CVA in which a Court Order is in force that stops all legal action or enforcement by creditors without the Court’s permission. 

A finance facility that allows businesses to get early income from a financier against the value of their sales ledger. When the you send out an invoice to your customer, a proportion of the total amount becomes available from the lender, providing an invaluable source of working capital throughout the month.

See Commercial Rent Arrears Recovery (CRAR) & Forfeiture 

The UK Law of Property Act passed in 1925 is a statute that contains provisions that give a secured creditor the right to appoint a receiver over the property of a debtor. Please click here for more 

The process where the assets of a company are sold & or converted to cash & paid to satisfy its liabilities as far as possible. In the event of a surplus, after payment of all liabilities plus statutory interest, this will be distributed to the shareholders.

A name given to a person who is responsible for dealing with the winding up of a company.  A liquidator must be a Licensed Insolvency Practitioner or the OR.

The owner of a company or a partner of a limited liability partnership. Also known as stakeholder & shareholder.

A process that enables members  to appoint a liquidator in order to formally close down a solvent company. Please click here for more information 

A period of time where enforcement action is prohibited in pending insolvency or insolvency proceedings.

A licensed insolvency practitioner nominated in an IVA, CVA or PVA proposal to act as supervisor. 

The Official Receiver (OR) is a civil servant & an officer of the Court, who deals with bankruptcy & compulsory liquidations although a licensed insolvency practitioner can replace them as liquidator or trustee in bankruptcy. The OR’s primary duty is to investigate the reason for insolvency & that the debtors account for their losses. 

Please see Company Voluntary Arrangement (CVA)

See Guarantee

A petition is a written application to the Court including the legal information required under statute for relief or remedy. For example a winding up petition or petition to bankrupt.

Creditors whose debts are preferential as defined by the IA. Most common being the employees for £800 arrears of wages plus accrued holiday entitlement. 

A document submitted by a creditor to the office holder or the OR that states their debt.

This is the name given to a licensed insolvency practitioner appointed by the Court to safeguard a company’s assets after the presentation of a winding up petition, but before a winding up order is made by the court. A temporary measure.

Authority given by a creditor or member to another individual (the proxy holder) to represent them (attend, speak &/or vote) at a decision procedure. The proxy may be a general proxy, giving the proxy holder discretion on voting, or a special proxy requiring them to vote as directed.

If a company defaults on a loan or payment to a secured creditor they can appoint a receiver over the company to sell its assets to pay back some or all of the debt. This is rarely used since Administration became prevalent in 2003. 

Employment termination through no fault of the employee, as a result of the job becoming redundant.  Redundancy pay is a statutory monetary entitlement under the employee's contract of employment or the ERA which, in insolvency, is paid to the employee by the RPS. 

A division of the Insolvency Services, which can take the place of the insolvent employer & settle some of its debts to its employees & steps in the shoes of the employee in the company, for the sums paid. See Employee section.

A provision stated in a contract between a supplier & customer which causes the title to the goods supplied to remain with the supplier until paid for. 

A charge or mortgage over assets that secures the payment of a debt. If the debt is not repaid, a lender, with the benefit of the security, has a right to sell the charged assets.

An individual who owns a business (which is not incorporated) who is wholly responsible for its day to day running & its debts. Generally small firms with few employees.

A document presented by the director(s) of a limited company or a debtor, which estimates/shows all the assets & liabilities at a specific date on or around the insolvency.

A formal demand for payment, which would have followed a letter before action, of an unpaid disputed debt over £35,000 for individuals or £750 for companies, which must be paid or properly challenged within 21 days of being issued. 

Failure to defend or pay a statutory demand can lead to a winding up or bankruptcy petition being issued.

The insolvency practitioner who is appointed to oversee IVAs, PVAs & CVAs. 

The legal practice under which an Enforcement Agent (EA) or HMRC issue a 7 clear day notice to recover a debt.  If the debt is not paid by 7 clear days after the notice,  the EA can call to take control of goods to the value of the debt & costs of enforcement. 

The debtor will be given a Controlled Goods Agreement (CGA) to sign against goods identified; if refused, goods may be removed immediately. The EA has to give 7 clear days notice of the sale. it’s usually best to agree to the CGA so your goods aren't taken away immediately. If the goods stay, they must not be sold or traded, it is a criminal offence.

In this period, to avoid your goods being taken & sold at auction you should pay the debt or agree a T2P. 

A T2P  is an informal agreement to repay your debts in installments over a specific period of time. 

Legislation protecting the contract & right of employees where a business is transferred in whole or part. 

The insolvency practitioner who is appointed to deal with a bankrupt’s estate. 

A creditor who does not hold security in relation to the debtor. Unsecured creditors are the general body of creditors whose rights to payment fall after preferential creditors. 

A phrase to describe the start of a liquidation.