The court process in insolvency proceedings

The court can be involved in insolvency proceedings for a number of purposes, including:

•
opening the insolvency process
•
issuing claims against individuals and entities to, among other things, recover property or obtain damages
•
issuing proceedings to compel individuals and entities to co-operate with the insolvency office-holder
•
issuing applications to obtain the court's direction on a particular issue

The court’s involvement in insolvency proceedings is to some extent subject to procedure and case management separate from the Civil Procedure Rules. In this regard, certain aspects are governed by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, Pt 12 and the Practice Direction on Insolvency Proceedings (PDIP). For further information, see Practice Note: Practice Direction on Insolvency Proceedings. Regard should also be given to the Chancery Guide.

Opening the insolvency process

Insolvency proceedings commenced using the court route are typically commenced on a petition or an application to court (on notice to the debtor company or individual). Compulsory liquidations and bankruptcies are commenced by a petition (bankruptcies can also be commenced by way of an application

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