Insolvency Made Clear: A Guide for Debtors

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Legal Terms Defined a bankruptcy order is made, but a private Insolvency Practitioner can replace them if the creditors wish. An ‘order’ is when the court requires something to happen or not happen. A ‘party’ to a claim is someone who participates in that claim. For example, the debtor and petitioning creditor are parties to a bankruptcy petition. The ‘PDIP’ is the ‘Practice Direction - Insolvency Proceedings’. This forms part of the procedural rules which the court will follow. It can be found at https:// www.justice.gov.uk/courts/procedure-rules/civil/rules/insolvency_pdf. A ‘personal representative’ is in charge of the estate of someone who has died. ‘Personal service’ means that a document must be physically handed to its addressee, as opposed to posted or sent by email. If personal service is not possible, the court may permit ‘alternative’ or ‘substituted’ service – typically service by post. A ‘petition’ is a request for the court. In this book, it refers to a request to bankrupt someone, except in Chapter 12 where a winding up petition is to put a company into liquidation. When the request is submitted to the court, the petition is said to be ‘presented’. The ‘petitioning creditor’ is the creditor who brings a petition, as opposed to any other creditor who might support or oppose the petition, or not be involved at all. A ‘privileged’ document is one which does not need to be disclosed to the other side of a dispute. Legal advice is usually privileged, and so is a document which is sent ‘without prejudice’. ‘Pro bono’ legal advice is legal advice given for free. ‘Proceedings’ is shorthand for ‘the court process when a claim is made’. A ‘process server’ is someone whose job is to serve documents, i.e. to deliver court documents to individuals. They are frequently used when a document requires personal service. ‘Property’ means something similar to ‘an asset’. It refers to someone’s possessions. Property does not need to be land (this is known as ‘real property’). For example, a car is a type of property. xxv
Insolvency Law Made Clear – A Guide For Debtors ‘Proving’ a debt means demonstrating to the Trustee in Bankruptcy or liquidator that the individual or company owed the creditor the debt. It can be as simple as sending them an invoice. Only certain debts are ‘provable’: the list is set out on in Box 8 on page 26. To ‘realise’ property is to sell it. The ‘respondent’ is the defendant to an application. If a debtor applies to set aside a statutory demand, the debtor is the applicant and the creditor is the respondent. The ‘Rules’ refer to the Insolvency (England and Wales) Rules 2016. If a reference is in the form (r[number]), it will be to the Rules. They can be found at https://www.legislation.gov.uk/uksi/2016/1024/contents/made. The ‘Secretary of State’ is shorthand for the Secretary of State for Business, Energy and Industrial Strategy. In practice, the Minister’s decisions will be made through the Insolvency Service. ‘Security’ for a loan is when, if the debtor defaults, the lender has some claim over an item. The lender can then sell that item and repay their own debt. The most common example is a mortgage, where the lender has a right to the house on which the mortgage is secured if the debtor does not pay. To ‘secure’ a debt is to provide security for it. ‘Secured’ creditors hold security. ‘Unsecured’ creditors do not. ‘Service’ of a court document means how it is to be given to its recipient. Two examples are service by post and ‘personal service’ where the recipient is given a document in person. It is usually enough to send a document by email. Certain documents, in particular statutory demands and bankruptcy petitions, have special requirements and must be served personally. A ‘statement of truth’ is a formal declaration by someone that the contents of the document is true to the best of their knowledge and belief. A ‘statutory demand’ is a formal request for payment. It must state that it is a statutory demand. A ‘stay’ of a claim, application or an order is when the court decides that it should be paused. ‘Solvency’ is the opposite of ‘insolvency’. If someone is solvent, they can pay their debts, and their total assets are greater than their debts. xxvi
Page 1 and 2: INSOLVENCY LAW MADE CLEAR A GUIDE F
Page 3 and 4: Published June 2021 ISBN 978-1-9163
Page 6: Acknowledgments I owe special thank
Page 9 and 10: Insolvency Law Made Clear - A Guide
Page 20 and 21: Preface: the effects of the pandemi
Page 22 and 23: Legal terms defined ‘The Act’:
Page 24 and 25: Legal Terms Defined A ‘dispositio
Page 28 and 29: Legal Terms Defined A ‘third part
Page 30 and 31: Introduction and aim of this book T
Page 32 and 33: Introduction And Aim Of This Book A
Page 34: Part 1 BANKRUPTCY The next few chap
Page 46 and 47: Chapter 2 Effect of bankruptcy This
Page 48 and 49: Effect Of Bankruptcy will only choo
Page 50 and 51: Effect Of Bankruptcy Box 5: HOW MUC
Page 52 and 53: Effect Of Bankruptcy by giving noti
Page 54 and 55: Effect Of Bankruptcy the seller goe
Page 56 and 57: Effect Of Bankruptcy The judge held
Page 58 and 59: Effect Of Bankruptcy Finally, the f
Page 60 and 61: Effect Of Bankruptcy to have an awk
Page 62 and 63: Effect Of Bankruptcy 2.10 Running t
Page 64 and 65: Effect Of Bankruptcy although it is
Page 66 and 67: Effect Of Bankruptcy either volunta
Page 68 and 69: Effect Of Bankruptcy 2.16 Investiga
Page 70 and 71: Effect Of Bankruptcy ‘privileged

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