Service of documents in insolvency proceedings—how service is effected, what needs to be served and when
Published by a LexisNexis Restructuring & Insolvency expert
Practice notesService of documents in insolvency proceedings—how service is effected, what needs to be served and when
Published by a LexisNexis Restructuring & Insolvency expert
Practice notes
Opening proceedings
When insolvency proceedings are commenced, each process will have its own procedure for serving the relevant documents. The positions for bankruptcy, compulsory liquidation and administration are summarised below.
Bankruptcy
Bankruptcy petitions presented by a creditor must be personally served by the creditor (or on their behalf) on the debtor, unless an order is made by the court for substituted service. This is dealt with at paragraph 1 and the table at the end of the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, Sch 4. Service is typically effected by the petitioning creditor (or their solicitor/authorised agent) delivering a sealed copy of the bankruptcy petition to the debtor.
The bankruptcy petition must be served at least 14 days before the first hearing, unless the court hears the matter as an 'expedited' petition where:
- •
the debtor has absconded
- •
the court is satisfied that it is a proper case for an expedited hearing, or
- •
the debtor consents in writing to a hearing within
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Insolvency definition
What does Insolvency mean?
This can be defined by two alternative tests (Insolvency Act 1986, s 123):
• cash flow test: a company is solvent if it can pay its debts as they fall due, no matter what the state of its balance sheet (Re Patrick & Lyon Ltd [1933] Ch 786);
• balance sheet test: a company which can pay its debts as they fall due may be insolvent if, according to its balance sheet, liabilities (including contingent liabilities) exceed assets.
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