Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Creditor definition

What does Creditor mean? A creditor is a person or entity to whom a monetary obligation is owed, with a right to demand and enforce payment from the debtor. In legal practice the term is used across contract, litigation and insolvency, and is also defined for specific purposes in legislation (for example, the Insolvency Act 1986, the Bankruptcy (Scotland) Act 2016, and, in Ireland, the Bankruptcy Act 1988 and Companies Act 2014). Those statutory uses commonly include present, future, contingent or unliquidated claims, and both secured and unsecured creditors. Key types include trade creditors, judgment creditors and secured creditors (such as mortgagees and fixed...

Scotland: Entering a creditors’ voluntary liquidation—directors’ and members’ steps, QFCH notice, liquidator nomination, statement of affairs and timelines under IA 1986 and ISRWUP Rules 2018 (Part 4)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

This Practice Note addresses the initiation of creditors’ voluntary liquidations (CVLs) as provided in Part IV of the Insolvency Act 1986 (IA 1986) and the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (ISRWUP Rules 2018), SSI 2018/347, r 4.1 (Part 4). It excludes the commencement of members’ voluntary liquidations (MVLs) in Scotland and does not deal with the relevant law, procedure and practice after a CVL has begun and been approved by creditors, through to exit and dissolution.

Scottish Insolvency Rules 2018

The Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018, SI 2018/1082, and the ISRWUP Rules 2018, SSI 2018/347 (together, the ‘2018 Rules’), took effect on 6 April 2019. This Practice Note has been revised to reflect the operation of the 2018 Rules. It does not consider any transitional provision, on the basis that few cases are expected to remain to which such provisions would apply. Note also that the 2018 Rules do not extend to LLPs.

CVLs in Scotland

A CVL in Scotland is a voluntary formal insolvency procedure, undertaken for the purpose of winding‑up the affairs of...

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Tim Cooper

Addleshaw Goddard

Tim is a Business Support & Restructuring partner at Addleshaw Goddard, based in Edinburgh, working in all aspects of corporate restructuring, asset recovery and insolvency. He has worked throughout his career as a corporate restructuring and insolvency lawyer, and has over 20 years career experience from the North of England and Scotland as a specialist in this area. Tim has worked on many high profile restructurings and insolvencies, including leading the team advising the liquidators of The Scottish Coal Company, administrators of Hawick Knitwear and of Ferguson Shipbuilders. Other career highlights range from handling Premier League and Championship football club restructurings, retail cases such as Dolcis Shoes, Whittard of Chelsea and Adams Childrenswear, manufacturing such as Silentnight Group, Behar Carpets, insurance mediation businesses such as FirstCity Group, and many others. Tim is also the Chair of R3 in Scotland, R3 Council Member for...

David Menzies

ICAS

David Menzies is Director of Practice at ICAS with responsibility, amongst other things, for co-ordinating engagement with IPs and other insolvency stakeholders, delivering enhanced support and representation on issues, and ensuring that ICAS is well-placed to influence a challenging policy and regulatory landscape.On a day to day basis David has responsibility for developing policy responses to Scottish and UK Government consultations on insolvency and restructuring matters, representing the views of the ICAS insolvency community in discussions with stakeholder groups and providing technical support to ICAS insolvency licence holders and members of the general public through the ICAS technical helpline service. David also provides support to the R3 Scottish Technical Committee and the Joint Insolvency Committee and is a member of the LexisNexis PSL Restructuring and Insolvency Scotland editorial board....

Louise Laing

Solicitor, Burness Paull

Louise is a Senior Associate in the Restructuring and Insolvency team at Brodies LLP. She has extensive experience in corporate restructuring and insolvency work, having specialised in the area for over 15 years (including a secondment to a financial institution). Louise has been involved in a number of high-profile formal insolvency appointments and multi-jurisdictional cases. She regularly advises insolvency practitioners on a wide range of insolvency issues in administrations, liquidations and receiverships and has acted for a number of administrators in achieving objective one: rescuing the company as a going concern.Louise has particular experience of advising banks and other lenders in relation to security enhancement and enforcement and formal insolvency strategies and appointments. She also has experience in relation to loan and security acquisition transactions and enforcement following on therefrom. Louise also advises corporates and directors in times of financial difficulty and acts for clients...

Web page updated on 21/05/2026

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