Bankruptcy level meaning

Boris Franz Becker (a bankrupt) v Ford and others [2024] EWHC 1001 (Ch), [2024] All ER (D) 11 (May) What are the practical implications of this case? The ruling offers a clear distillation of the approach reflected in the authorities reviewed by Chief ICC Judge Briggs, summarised as: If the court has previously found non-compliance warranting a suspension of discharge, it should likewise be persuaded that the bankrupt has later co-operated to a level aligned with his duties under the Insolvency Act 1986 (IA 1986). As a rule, the court will attach proper weight to a report from the official receiver or the trustee; as officers of the court, they possess insight into the bankruptcy and can brief the court on the bankrupt's conduct. Co-operation exists on a sliding scale: at one end sit bankrupts who are maximally obstructive with the aim of thwarting the trustee's inquiries; at the other are those broadly co-operative who nonetheless have not fully met their obligations... ...

In this issue: Key R&I law developments Corporate insolvency processes Personal insolvency Restructuring Directors and insolvency The office-holder International restructuring and insolvency Daily and weekly news alerts Key dates for restructuring and insolvency professionals Key R&I law developments Insolvency Service publishes monthly insolvency statistics for September 2025 The Insolvency Service has released its monthly figures for September 2025 covering corporate and personal insolvencies across England and Wales. It covers company and individual procedures across England and Wales during the period, as set out therein. The figures show 2,000 corporate insolvencies, broadly matching August 2025 (2,046) and the level recorded a year earlier (1,967 in September 2024). For individuals, total insolvencies in September 2025 stood at 11,101, down 3% on August 2025 but 7% above September 2024. See: LNB News 17/10/2025 29. Corporate insolvency processes Can liquidators or their firms dealing with a members’ voluntary liquidation limit their...

The role and functions of a liquidator A liquidator must be a licensed insolvency practitioner, authorised by a recognised professional body, and must hold appropriate authorisation. Put simply, the liquidator’s role is to safeguard the company’s assets, ensure they are realised into value, and distribute the proceeds to the company’s creditors and, where any balance remains, to the company’s contributories. The liquidator must carry out this role strictly in line with the duties imposed and powers conferred by the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. Liquidators owe a duty to promote the interests of creditors and contributories generally, as a whole, and are required to exercise a high level of care and skill. They must at all times act impartially and independently. A liquidator acts as the company’s agent, albeit in a way that differs from a typical agency, as the agent both directs the principal and acts on its behalf. The liquidator does not step into the...

The purpose of a statutory demand The purpose of a statutory demand is to demonstrate that a company cannot pay its debts, rather than the creditor relying on section 123(1)(e) or section 123(2) of the Insolvency Act 1986 (IA 1986). A statutory demand is a written demand, in the prescribed form, for a debt over £750, served on a company by leaving it at the company’s registered office (IA 1986, s 123(1)(a)). This threshold is not altered by the increase in the bankruptcy level for bankruptcy petitions from £750 to £5,000 that came into force on 1 October 2015. If the statutory demand is left unpaid and is not disputed, the company is treated as unable to pay its debts, giving a creditor grounds to present a winding-up petition against the company. When not to use a statutory demand A statutory demand should not be used where: there is a genuine dispute about the amount owed the company has a cross-claim or counterclaim...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

INSOLVENCY ACT APPLICATION NOTICE Note: Use with an application notice template compliant with the Insolvency (England and Wales) Rules 2016, SI 2016/1024 (Form IAA), IR 2016, r 1.35... Case No: [insert]. [In the High Court of Justice, Business and Property Courts (Insolvency and Companies List (ChD)) in England and Wales or in [location]; or in the County Court at [location], Business and Property Work]... In the matter of [bankrupt’s name] (In Bankruptcy) and the Insolvency Act 1986. Between [Applicant(s)] and [Respondent(s)]. Application under section 284... Applicant(s): [names/addresses]. Respondent(s): [names/addresses]. The application concerns [details of the relevant bankruptcy]. To be heard by [level of judge] at [court/hearing centre]. Within existing insolvency proceedings? YES/NO. Court reference: [insert]... Declaration that [the disposition] is void under section 284. Order restoring the position as if the disposition had not occurred. Order that the Respondent(s) pay the Applicant(s)’ costs. Further or other relief as the Court considers appropriate. Grounds: set out in the...

INSOLVENCY ACT APPLICATION NOTICE Use this Precedent alongside an application notice template that accords with the Insolvency (England and Wales) Rules 2016, SI 2016/1024, including Form IAA under IR 2016, r 1.35. Complete the following: case number; court heading (High Court—Business and Property Courts, Insolvency and Companies List (ChD), specifying location where appropriate, or County Court—Business and Property Work); and the matter (company or bankrupt) in bankruptcy and under the Insolvency Act 1986. Identify the Applicant(s) and Respondent(s) with full names and addresses, the company/bankrupt concerned, and the judicial level and court or hearing centre. Confirm whether the application sits within existing insolvency proceedings (YES/NO) and provide the related court reference. Statutory basis: section(s) 238, 239, 339 and/or 340. Relief sought: declaration of preference/transaction at an undervalue; repayment to restore the position; interest under the Court’s equitable jurisdiction or section 35A Senior Courts Act 1981; costs; any further order. Grounds: set out in the numbered witness statement with author and date. Service: list...