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The Insolvency Rules (Northern Ireland) 1991

Type Ni-Statutory-Rule

Publication 1991-08-05

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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Substitution of petitioner

6.027

(1) This Rule applies where a creditor petitions and is subsequently found not entitled to do so, or where the petitioner—

(a) consents to withdraw his petition or to allow it to be dismissed, or consents to an adjournment, or fails to appear in support of his petition when it is called on in court on the original hearing date, or on a date to which it is adjourned, or

(b) appears, but does not apply for an order in the terms of the prayer of his petition.

(2) The court may, on such terms as it thinks just, order that there be substituted as petitioner any creditor who—

(a) has under Rule 6.020 given notice of his intention to appear at the hearing or who has been given leave to appear under that Rule,

(b) is desirous of prosecuting the petition, and

(c) was, at the date on which the petition was presented, in such a position in relation to the debtor as would have enabled him (the creditor) on that date to present a bankruptcy petition in respect of a debt or debts owed to him by the debtor, sub-paragraphs (a) to (d) of Article 241 (2) being satisfied in respect of that debt or those debts.

Change of carriage of petition

6.028-CP

(1) On the hearing of a creditor's petition, any person who claims to be a creditor of the debtor, and who has given notice under Rule 6.020 of his intention to appear at the hearing or has been given leave to appear under that Rule, may apply to the court for an order giving him carriage of the petition in place of the petitioning creditor, but without requiring any amendment of the petition.

(2) The court may, on such terms as it thinks just, make a change of carriage order if satisfied that—

(a) the applicant is an unpaid and unsecured creditor of the debtor, and

(b) the petitioning creditor either—

(i) intends by any means to secure the postponement, adjournment or withdrawal of the petition, or

(ii) does not intend to prosecute the petition, either diligently or at all.

(3) The court shall not make the order if satisfied that the petitioning creditor's debt has been paid, secured or compounded for by means of—

(a) a disposition of property made by some person other than the debtor, or

(b) a disposition of the debtor's own property made with the approval of, or ratified by, the court.

(4) A change of carriage order may be made whether or not the petitioning creditor appears at the hearing.

(5) If the order is made, the person given the carriage of the petition is entitled to rely on all evidence previously adduced in the proceedings (whether by affidavit or otherwise).

Petitioner seeking dismissal or leave to withdraw

6.029

(1) Where the petitioner applies to the court for the petition to be dismissed, or for leave to withdraw it, he must, unless the court otherwise orders, file in court an affidavit specifying the grounds of the application and the circumstances in which it is made.

(2-CP) If, since a creditor's petition was filed, any payment has been made to the petitioner by way of settlement (in whole or in part) of the debt or debts in respect of which the petition was presented, or any arrangement has been entered into for securing or compounding it or them, the affidavit must state—

(a) what dispositions of property have been made for the purposes of the settlement or arrangement, and

(b) whether, in the case of any disposition, it was property of the debtor himself, or of some other person, and

(c) whether, if it was property of the debtor, the disposition was made with the approval of, or has been ratified by, the court (if so, specifying the relevant court order).

(3) No order giving leave to withdraw a petition shall be given before the petition is heard.

Settlement, content and certification of bankruptcy order

6.030

(1) The bankruptcy order shall be settled by the court.

(2) The order shall—

(a) state the date of the presentation of the petition on which the order is made, and the date and time of the making of the order, and

(b) contain a notice requiring the bankrupt, forthwith after service of the order on him, to attend on the official receiver at the place stated in the order.

(3) Subject to Article 88 of the Judgments Enforcement (Northern Ireland) Order 1981 [^f00017] (effect of bankruptcy on enforcement), the order may include provision staying any action or proceeding against the bankrupt.

(4) Where the petitioner is represented by a solicitor, the order shall be endorsed with the latter's name, address, telephone number, fax number (if any) and reference (if any).

(5) The copy of the order required by section 3B(1) of the Registration of Deeds Act (Northern Ireland) 1970 to be certified by the High Court shall be certified by the Master.

Action to follow making of order

6.031

(1) The court shall forthwith after the making of the bankruptcy order—

(a) send at least 5 sealed copies (one of which shall be certified by the Master) to the official receiver,

(b) send one sealed copy to the Clerk of the Crown, and

(2) On receiving the copy orders the official receiver shall—

(a) forthwith send one of the uncertified copies to the bankrupt, and

(b) subject to paragraph (3)—

(i) send notice of the making of the order to the Enforcement of Judgments Office,

(ii) register the order in the Registry of Deeds in accordance with section 3B(1) of the Registration of Deeds Act (Northern Ireland) 1970 [^f00018]

(iii) cause the order to be advertised in such newspaper as he thinks fit, and

(iv) cause the order to be gazetted.

(3) The court may, on the application of the bankrupt or a creditor, order the official receiver to suspend action under paragraph (2), pending a further order of the court.

(4) An application under paragraph (3) shall be supported by an affidavit stating the grounds on which it is made.

(5) Where an order is made under paragraph (3), the applicant for the order shall forthwith deliver a copy of it to the official receiver.

Amendment of title of proceedings

6.032

(1) At any time after the making of the bankruptcy order, the official receiver, the trustee or any person aggrieved may apply to the court for an order amending the full title of the proceedings.

(2) Where such an order is made, the official receiver shall forthwith—

(a) send a sealed copy of the order to the Enforcement of Judgments Office,

(b) send 2 sealed copies of the order (one of which shall be certified by the Master) to the Registrar of Deeds for registration, and

(c) if notice of the presentation of the petition or of the bankruptcy order has been given to the Registrar of Titles, send a sealed and certified copy of the order to him, for registration.

(3) If the court so directs, the official receiver shall also—

(a) cause notice of the order to be gazetted, and

(b) cause notice of the order to be advertised in such newspaper as he thinks appropriate.

Old debtor's summonses

6.033-CP

(1) Subject to paragraphs (2) and (3), a person who has before the appointed day served a debtor's summons under the Bankruptcy (Ireland) Amendment Act 1872[^f00019] may, on or after that day, proceed on the summons as if it were a statutory demand duly served under Chapter 1.

(2) The conditions of the application of this Rule are that—

(a) the debt in respect of which the debtor's summons was served has not been paid, secured or compounded for in the terms of the debtor's summons and the Bankruptcy (Ireland) Amendment Act 1872;

(b) the date by which compliance with the debtor's summons was required was not more than 6 months before the date of presentation of the petition; and

(c) there has not, before the appointed day, been presented any bankruptcy petition with reference to an act of bankruptcy arising from non-compliance with the debtor's summons.

(3) If before, on or after the appointed day, application is made (under the Bankruptcy (Ireland) Amendment Act 1872) to dismiss the debtor's summons, that application is to be treated, on and after that day, as an application duly made (on the date on which it was in fact made) to set aside a statutory demand duly served on the date on which the debtor's summons was in fact served.

(4) In this Rule, “appointed day” means the day appointed under Article 1(2) by the Head of the Department for the coming into operation of Article 242.

CHAPTER 3 — BANKRUPTCY PETITION (DEBTOR'S)

Preliminary

6.034

This Chapter relates to a debtor's petition, and the making of a bankruptcy order thereon.

Identification of debtor

6.035

(1) The petition shall state the following matters with respect to the debtor—

(a) his name, place of residence and occupation (if any);

(b) the name or names in which he carries on business, if other than his true name, and whether, in the case of any business of a specified nature, he carries it on alone or with others;

(d) any name or names, other than his true name, in which he has carried on business in the period in which any of his bankruptcy debts were incurred and, in the case of any such business, whether he has carried it on alone or with others; and

(e) any address or addresses at which he has resided or carried on business during that period, and the nature of that business.

(2) The particulars of the debtor given under this Rule determine the full title of the proceedings.

(3) If the debtor has at any time used a name other than the one given under paragraph (1)(a), that fact shall be stated in the petition.

Admission of insolvency

6.036

(1) The petition shall contain the statement that the petitioner is unable to pay his debts, and a request that a bankruptcy order be made against him.

(2) If within the period of 5 years ending with the date of the petition the petitioner has been adjudged bankrupt, or has made a composition with his creditors in satisfaction of his debts or a scheme of arrangement of his affairs, or he has entered into any voluntary arrangement or been subject to an administation order under Article 80 of the Judgments Enforcement (Northern Ireland) Order 1981[^f00020], particulars of these matters shall be given in the petition.

(3) If there is at the date of the petition in force for the debtor a voluntary arrangement, the particulars required by paragraph (2) shall contain a statement to that effect and the name and address of the supervisor of the voluntary arrangement.

Statement of affairs

6.037

(1) The petition shall be accompanied by a statement of the debtor's affairs, verified by affidavit.

(2) Section B of Chapter 5 applies with respect to the statement of affairs.

Procedure for presentation and filing

6.038

(1) The petition and the statement of affairs shall be filed in court, together with 3 copies of the petition, and 2 copies of the statement. No petition shall be filed unless there is produced with it the receipt for the deposit payable on presentation.

(2) Subject to paragraph (3), the court may hear the petition forthwith. If it does not do so, it shall fix a venue for the hearing.

(3) If the petition contains particulars of a voluntary arrangement in force for the debtor, the court shall fix a venue for the hearing and give at least 14 days' notice of it to the supervisor of the voluntary arrangement; the supervisor may appear and be heard on the petition.

(4) Of the 3 copies of the petition delivered—

(a) one shall be returned to the petitioner, endorsed with any venue fixed;

(b) another, so endorsed, shall be sent by the court to the official receiver; and

(c) the remaining copy shall be retained by the court, to be sent to an insolvency practitioner (if appointed under Article 247(2)).

(5) Of the 2 copies of the statement of affairs—

(a) one shall be sent by the court to the official receiver; and

(b) the other shall be retained by the court to be sent to the insolvency practitioner (if appointed).

(6) The affidavit verifying the debtor's statement of affairs may be sworn before an officer of the court duly authorised in that behalf.

(7) Where the court hears a petition forthwith, or it will in the opinion of the court otherwise expedite the delivery of any document to the official receiver, the court may, instead of sending that document to the official receiver, direct the bankrupt forthwith to deliver it to him.

(8) Where a petition contains a request for the appointment of a person as trustee in accordance with Article 270(4) (appointment of former supervisor as trustee) the person whose appointment is sought shall, not less than 2 days before the day appointed for hearing the petition, file in court a report including particulars of—

(a) a date on which he gave written notification to creditors bound by the voluntary arrangement of the intention to seek his appointment as trustee, such date to be at least 10 days before the day on which the report under this paragraph is filed, and

(b) details of any response from creditors to that notice, including any objections to his appointment.

Notice and registration of petition

6.039

(1) When the petition is filed, the court shall forthwith—

(a) send notice of its presentation to the Enforcement of Judgments Office, and

(b) register the petition in the Registry of Deeds in accordance with section 3A(1) of the Registration of Deeds Act (Northern Ireland) 1970[^f00021], and

(2) The copy of the document required by section 3A(1) of the Registration of Deeds Act (Northern Ireland) 1970 to be certified by the High Court shall be certified by the Master.

(3) If at any time after the petition is filed it appears to the Master that the person by whom it is presented is the registered owner of any land, he shall give notice of the presentation of the petition to the Registrar of Titles in accordance with section 67A(1) of the Land Registration Act (Northern Ireland) 1970[^f00022].

Dismissal or withdrawal of petition or stay of proceedings

6.040

(1) If an order is made dismissing the petition or giving leave to withdraw it, the order shall include provision permitting vacation of the registration of the petition in the Registry of Deeds and, if notice of the presentation of the petition has been given to the Registrar of Titles, permitting the cancellation of any entry in the register of the said notice and the court shall send to the debtor 2 sealed copies of the order together with the certificate required by section 3(4) of the Registration of Deeds Act (Northern Ireland) 1970, as applied by section 3A(3) of that Act, signed by the Master.

(2) If the petition is dismissed or withdrawn, or if proceedings on it are stayed, the court shall send notice of the making of the order of dismissal or stay or of the withdrawal to the Enforcement of Judgments Office.

(3) Where, on the application of the debtor, the court is satisfied that, under Article 234(6), the petition is deemed to be dismissed by reason of an interim order ceasing to have effect, it shall—

(a) make an order permitting vacation of the registration of the petition in the Registry of Deeds and, if notice of the presentation of the petition has been given to the Registrar of Titles, permitting cancellation of any entry in the register of the said notice,

(b) send to the debtor 2 sealed copies of the order, and

Report of insolvency practitioner

6.041

(1) If the court under Article 247(2) appoints an insolvency practitioner to act in the debtor's case, it shall forthwith—

(a) send to the person appointed—

(i) a sealed copy of the order of appointment, and

(ii) copies of the petition and statement of affairs,

(b) fix a venue for the responsible insolvency practitioner's report to be considered, and

(2) The responsible insolvency practitioner shall file his report in court and send one copy of it to the debtor, so as to be in his hands not less than 3 days before the date fixed for consideration of the report, and a further copy to the official receiver.

(3) The debtor is entitled to attend when the report is considered, and shall attend if so directed by the court. If he attends, the court shall hear any representations which he makes with respect to any of the matters dealt with in the report.

Settlement, content and certification of bankruptcy order

6.042

(1) The bankruptcy order shall be settled by the court.

(2) The order shall—

(a) state the date of the presentation of the petition on which the order is made, and the date and time of the making of the order, and

(b) contain a notice requiring the bankrupt, forthwith after the service of the order on him, to attend on the official receiver at the place stated in the order.

(3) Subject to Article 88 of the Judgments Enforcements (Northern Ireland) Order 1981[^f00023] (effect of bankruptcy on enforcement procedures), the order may include provision staying any action or proceeding against the bankrupt.

(4) Where the bankrupt is represented by a solicitor, the order shall be endorsed with the latter's name, address, telephone number, fax number (if any) and reference.

(5) The copy of the order required by section 3B(1) of the Registration of Deeds Act (Northern Ireland) 1970 to be certified by the High Court shall be certified by the Master.

Action to follow making of order

6.043

(1) The court shall forthwith after the making of the bankruptcy order—

(a) send at least 5 sealed copies (one of which shall be certified by the Master) to the official receiver,

(b) send one sealed copy to the Clerk of the Crown, and

(2) On receiving the copy orders the official receiver shall—

(a) forthwith send one of the uncertified copies to the bankrupt, and

(b) subject to paragraph (3)—

(i) send notice of the making of the order to the Enforcement of Judgments Office,

(ii) register the order in the Registry of Deeds in accordance with section 3B(1) of the Registration of Deeds Act (Northern Ireland) 1970,

(iii) cause the order to be advertised in such newspaper as he thinks fit, and

(iv) cause the order to be gazetted.

(3) The court may, on the application of the bankrupt or a creditor, order the official receiver to suspend action under paragraph (2), pending a further order of the court.

(4) An application under paragraph (3) shall be supported by an affidavit stating the grounds on which it is made.

(5) Where an order is made under paragraph (3), the applicant shall forthwith deliver a copy of it to the official receiver.

Expenses of voluntary arrangement

6.044

Where a bankruptcy order is made on a debtor's petition and there is at the time of the petition in force for the debtor a voluntary arrangement, any expenses properly incurred as expenses of the administration of the voluntary arrangement in question shall be a first charge on the bankrupt's estate.

Amendment of title of proceedings

6.045

(1) At any time after the making of the bankruptcy order, the official receiver, the trustee or any person aggrieved may apply to the court for an order amending the full title of the proceedings.

(2) Where such an order is made, the official receiver shall forthwith—

(a) send a sealed copy of the order to the Enforcement of Judgments Office,

(b) send 2 sealed copies of the order (one of which shall be certified by the Master) to the Registrar of Deeds for registration, and

(c) if the notice of the presentation of the petition or of the bankruptcy order has been given to the Registrar of Titles, send a sealed and certified copy of the order to him, for registration.

(3) If the court so directs, the official receiver shall also—

(a) cause notice of the order to be gazetted, and

(b) cause notice of the order to be advertised in such newspaper as he thinks appropriate.

Certificate for summary administration

6.046

(1) If the court under Article 249 issues a certificate for the summary administration of the bankrupt's estate, the certificate may be included in the bankruptcy order.

(2) If the certificate is not so included, the court shall forthwith send copies of it to the official receiver and the bankrupt.

Duty of official receiver in summary administration

6.047

(1) Where a trustee has been appointed, the official receiver shall send a copy of the certificate of summary administration (whether or not included in the bankruptcy order) to him.

(2) Within 12 weeks after the issue of the certificate the official receiver shall (insofar as he has not already done so) give notice to creditors of the making of the bankruptcy order.

Revocation of certificate for summary administration

6.048

(1) The court may under Article 249(3) revoke a certificate for summary administration, either of its own motion or on the application of the official receiver.

(2) If the official receiver applies for the certificate to be revoked, he shall give at least 14 days' notice of the application to the bankrupt.

(3) If the court revokes the certificate, it shall forthwith give notice to the official receiver and the bankrupt.

(4) If at the time of revocation there is a trustee other than the official receiver, the official receiver shall send a copy of the court's notice to him.

CHAPTER 4 — THE INTERIM RECEIVER

Application for appointment of interim receiver

6.049

(1) An application to the court for the appointment of an interim receiver under Article 259 may be made—

(a) by a creditor,

(b) by the debtor,

(d) by an insolvency practitioner appointed under Article 247(2).

(2) The application must be supported by an affidavit stating—

(a) the grounds on which it is proposed that the interim receiver should be appointed,

(b) whether or not the official receiver has been informed of the application and, if so, has been furnished with a copy of it,

(d) the applicant's estimate of the value of the property or business in respect of which the interim receiver is to be appointed.

(3) If an insolvency practitioner has been appointed under Article 24 7, and it is proposed that he (and not the official receiver) should be appointed interim receiver, and it is not the insolvency practitioner himself who is the applicant under this Rule, the affidavit under paragraph (2) must state that he has consented to act.

(4) The applicant shall send copies of the application and the affidavit to the person proposed to be appointed interim receiver. If that person is the official receiver and an insolvency practitioner has been appointed under Article 247 (and he is not himself the applicant), copies of the application and affidavit shall be sent by the applicant to the insolvency practitioner.

(5) If, in any case where a copy of the application is to be sent to a person under paragraph (4), it is for any reason not practicable to send a copy, that person must be informed of the application in sufficient time to enable him to be present at the hearing.

(6) The official receiver and (if appointed) the insolvency practitioner may attend the hearing of the application and make representations.

(7) The court may on the application, if satisfied that sufficient grounds are shown for the appointment, make it on such terms as it thinks fit.

Order of appointment

6.050

(1) The order appointing the interim receiver shall state the nature and give a short description of the property of which the person appointed is to take possession, and the duties to be performed by him in relation to the debtor's affairs.

(2) The court shall, forthwith after the order is made, send 2 sealed copies of it to the person appointed interim receiver (one of which shall be sent by him forthwith to the debtor).

Deposit

6.051

(1) Before an order appointing the official receiver as interim receiver is issued, the applicant for it shall deposit with him, or otherwise secure to his satisfaction, such sum as the court directs to cover his remuneration and expenses.

(2) If the sum deposited or secured subsequently proves to be insufficient, the court may, on application by the official receiver, order that an additional sum be deposited or secured. If the order is not complied with within 2 days after service on the person to whom the order is directed, the court may discharge the order appointing the interim receiver.

(3) If a bankruptcy order is made after an interim receiver has been appointed, any money deposited under this Rule shall (unless it is required by reason of insufficiency of assets for payment of remuneration and expenses of the interim receiver, or the deposit was made by the debtor out of his own property) be repaid to the person depositing it (or as that person may direct) out of the bankrupt's estate, in the prescribed order of priority.

Security

6.052

(1) Paragraph (2) and Rule 6.053 apply where an insolvency practitioner is appointed to be interim receiver under Article 259(2).

(2) The cost of providing the security required under the Order shall be paid in the first instance by the interim receiver; but—

(a) if a bankruptcy order is not made, the person so appointed is entitled to be reimbursed out of the property of the debtor, and the court may make an order on the debtor accordingly, and

(b) if a bankruptcy order is made, he is entitled to be reimbursed out of the estate in the prescribed order of priority.

Failure to give or keep up security

6.053

(1) If the interim receiver fails to give or keep up his security, the court may remove him, and make such order as it thinks fit as to costs.

(2) If an order is made under this Rule removing the interim receiver, or discharging the order appointing him, the court shall give directions as to whether any, and if so what, steps should be taken for the appointment of another person in his place.

Remuneration

6.054

(1) The remuneration of the interim receiver (other than the official receiver) shall be fixed by the court from time to time on his application.

(2) In fixing the interim receiver's remuneration, the court shall take into account—

(a) the time properly given by him (as interim receiver) and his staff in attending to the debtor's affairs,

(b) the complexity (or otherwise) of the case,

(c) any respects in which, in connection with the debtor's affairs, there falls on the interim receiver any responsibility of an exceptional kind or degree,

(d) the effectiveness with which the interim receiver appears to be carrying out, or to have carried out, his duties as such, and

(e) the value and nature of the property with which he has to deal.

(3) Without prejudice to any order the court may make as to costs, the interim receiver's remuneration (whether the official receiver or another) shall be paid to him, and the amount of any expenses incurred by him (including the remuneration and expenses of any special manager appointed under Article 341) reimbursed—

(a) if a bankruptcy order is not made, out of the property of the debtor, and

(b) if a bankruptcy order is made, out of the estate in the prescribed order of priority,

or, in either case (the relevant funds being insufficient), out of the deposit under Rule 6.051.

(4) Unless the court otherwise directs, in a case falling within paragraph (3)(a) the interim receiver may retain out of the debtor's property such sums or property as are or may be required for meeting his remuneration and expenses.

Termination of appointment

6.055

(1) The appointment of the interim receiver may be terminated by the court on the application of—

(a) the interim receiver himself,

(b) the official receiver,

(d) any creditor, or

(e) on a petition under Article 238 (1)(d), the petitioner.

(2) If the interim receiver's appointment terminates, in consequence of the dismissal of the bankruptcy petition or otherwise, the court may give such directions as it thinks fit with respect to the accounts of his administration and any other matters which it thinks appropriate.

CHAPTER 5 — DISCLOSURE BY BANKRUPT WITH RESPECT TO THE STATE OF HIS AFFAIRS

SECTION A: PETITION OTHER THAN DEBTOR'S

Preliminary

6.056

This Section applies with respect to the statement of affairs required by Article 261 (1) to be submitted by the bankrupt, following a bankruptcy order made otherwise than on his own petition, and the further and other disclosure which is required of him in that case.

The statement of affairs

6.057

The bankrupt's statement of affairs shall be in Form 6.36, and contain all the particulars required by that form.

Verification and filing

6.058

(1) The bankrupt shall be furnished by the official receiver with instructions for the preparation of his statement of affairs, and the forms required for that purpose.

(2) The statement of affairs shall be verified by affidavit and delivered to the official receiver, together with one copy.

(3) The official receiver shall file the verified statement in court.

(4) The affidavit may be sworn before an official receiver or a deputy official receiver, or before an officer of the Department or the court duly authorised in that behalf.

Limited disclosure

6.059

(1) Where the official receiver thinks that it would prejudice the conduct of the bankruptcy for the whole or part of the statement of affairs to be disclosed, he may apply to the court for an order of limited disclosure in respect of the statement, or any specified part of it.

(2) The court may on the application order that the statement or, as the case may be, the specified part of it be not filed in court, or that it is to be filed separately and not be open to inspection otherwise than with leave of the court.

Release from duty to submit statement of affairs; extension of time

6.060

(1) The power of the official receiver under Article 261(3) to release the bankrupt from his duty to submit a statement of affairs, or to grant an extension of time, may be exercised at the official receiver's own discretion, or at the bankrupt's request.

(2) The bankrupt may, if he requests a release or extension of time and it is refused by the official receiver, apply to the court for it.

(3) The court may, if it thinks that no sufficient cause is shown for the application, dismiss it; but it shall not do so unless the bankrupt has had an opportunity to attend the court for an ex parte hearing, of which he has been given at least 7 days' notice.

(4) If the application is not dismissed under paragraph (3), the court shall fix a venue for it to be heard, and give notice to the bankrupt accordingly.

(5) The bankrupt shall, at least 14 days before the hearing date, send to the official receiver a notice stating the venue and accompanied by a copy of the application, and of any evidence which he (the bankrupt) intends to adduce in support of it.

(6) The official receiver may appear and be heard on the application; and, whether or not he appears, he may file a written report of any matters which he considers ought to be drawn to the court's attention.

(7) If the official receiver files a report under paragraph (6), he shall send a copy of it to the bankrupt not later than 5 days before the hearing date.

(8) Sealed copies of any order made on the application shall be sent by the court to the bankrupt and the official receiver.

(9) On any application under this Rule the bankrupt's costs shall be paid in any event by him and, unless the court otherwise orders, no allowance towards them shall be made out of the estate.

Expenses of statement of affairs

6.061

(1) If the bankrupt cannot himself prepare a proper statement of affairs, the official receiver may, at the expense of the estate, employ some person or persons to assist in the preparation of the statement.

(2) At the request of the bankrupt, made on the grounds that he cannot himself prepare a proper statement, the official receiver may authorise an allowance payable out of the estate (in accordance with the prescribed order of priority) towards expenses to be incurred by the bankrupt in employing some person or persons to assist him in preparing it.

(3) Any such request by the bankrupt shall be accompanied by an estimate of the expenses involved; and the official receiver shall only authorise the employment of a named person or a named firm, being in either case approved by him.

(4) An authorisation given by the official receiver under this Rule shall be subject to such conditions (if any) as he thinks fit to impose with respect to the manner in which any person may obtain access to relevant books and papers.

(5) Nothing in this Rule relieves the bankrupt from any obligation with respect to the preparation, verification and submission of his statement of affairs, or to the provision of information to the official receiver or the trustee.

Requirement to submit accounts

6.062

(1) The bankrupt shall, at the request of the official receiver, furnish him with accounts relating to his affairs of such nature, as at such date and for such period as he may specify.

(2) The period specified may begin from a date up to 3 years preceding the date of the presentation of the bankruptcy petition.

(3) The court may, on the official receiver's application, require accounts in respect of any earlier period.

(4) Rule 6.061 applies (with the necessary modifications) in relation to accounts to be furnished under this Rule as it applies in relation to the statement of affairs.

Submission and filing of accounts

6.063

(1) The accounts to be furnished under Rule 6.062 shall, if the official receiver so requires, be verified by affidavit, and (whether or not so verified) delivered to him within 21 days of the request under Rule 6.062), or such longer period as he may allow.

(2) Two copies of the accounts and (where required) the affidavit shall be delivered by the bankrupt to the official receiver, who shall file one copy in court (with the affidavit, if any).

Further disclosure

6.064

(1) The official receiver may at any time require the bankrupt to submit (in writing) further information amplifying, modifying or explaining any matter contained in his statement of affairs, or in accounts submitted in pursuance of the Order or the Rules.

(2) The information shall, if the official receiver so directs, be verified by affidavit, and (whether or not so verified) delivered to him within 21 days of the requirement under this Rule, or such longer period as he may allow.

(3) Two copies of the documents containing the information and (where verification is directed) the affidavit shall be delivered by the bankrupt to the official receiver, who shall file one copy in court (with the affidavit, if any).

SECTION B: DEBTOR'S PETITION

Preliminary

6.065

This Section applies with respect to the statement of affairs required in the case of a person petitioning for a bankruptcy order to be made against him and the further disclosure which is required of him in that case.

Contents of statement

6.066

The statement of affairs required by Rule 6.037 to accompany the debtor's petition shall be in Form 6.31, and contain all the particulars required by that form.

Requirement to submit accounts

6.067

(1) The bankrupt shall, at the request of the official receiver, furnish him with accounts relating to his affairs of such nature, as at such date and for such period as he may specify.

(2) The period specified may begin from a date up to 3 years preceding the date of the presentation of the bankruptcy petition.

(3) The court may, on the official receiver's application, require accounts in respect of any earlier period.

Submission and filing of accounts

6.068

(1) The accounts to be furnished under Rule 6.067 shall, if the official receiver so requires, be verified by affidavit, and (whether or not so verified) delivered to him within 21 days of the request under Rule 6.067, or such longer period as he may allow.

(2) Two copies of the accounts and (where required) the affidavit shall be delivered by the bankrupt to the official receiver, who shall file one copy in court (with the affidavit, if any).

Expenses of preparing accounts

6.069

(1) If the bankrupt cannot himself prepare proper accounts under Rule 6.067, the official receiver may, at the expense of the estate, employ some person or persons to assist in their preparation.

(2) At the request of the bankrupt, made on the grounds that he cannot himself prepare the accounts, the official receiver may authorise an allowance payable out of the estate (in accordance with the prescribed order of priority) towards expenses to be incurred by the bankrupt in employing some person or persons to assist him in their preparation.

(3) Any such request by the bankrupt shall be accompanied by an estimate of the expenses involved; and the official receiver shall only authorise the employment of a named person or a named firm, being in either case approved by him.

(4) An authorisation given by the official receiver under this Rule shall be subject to such conditions (if any) as he thinks fit to impose with respect to the manner in which any person may obtain access to relevant books and papers.

(5) Nothing in this Rule relieves the bankrupt from any obligation with respect to the preparation and submission of accounts, or to the provision of information to the official receiver or the trustee.

Further disclosure

6.070

(1) The official receiver may at any time require the bankrupt to submit (in writing) further information amplifying, modifying or explaining any matter contained in his statement of affairs, or in accounts submitted in pursuance of the Order or the Rules.

(2) The information shall, if the official receiver so directs, be verified by affidavit, and (whether or not so verified) delivered to him within 21 days from the date of the requirement under paragraph (1), or such longer period as he may allow.

(3) Two copies of the documents containing the information and (where verification is directed) the affidavit shall be delivered by the bankrupt to the official receiver, who shall file one copy in court, with the affidavit (if any).

CHAPTER 6 — INFORMATION TO CREDITORS

General duty of official receiver

6.071

(1) In accordance with this Chapter, the official receiver shall, at least once after the making of the bankruptcy order, send a report to creditors with respect to the bankruptcy proceedings, and the state of the bankrupt's affairs.

(2) The official receiver shall file in court a copy of any report sent under this Chapter.

Those entitled to be informed

6.072

Any reference in this Chapter to creditors is to creditors of the bankrupt who are known to the official receiver or, where the bankrupt has submitted a statement of affairs, are identified in the statement.

Report where statement of affairs lodged

6.073

(1) Where the bankrupt has submitted a statement of affairs, and it has been filed in court, the official receiver shall send out to creditors a report containing a summary of the statement (if he thinks fit, as amplified, modified or explained by virtue of Rule 6.064 or 6.070) and such observations (if any) as he thinks fit to make with respect to it or to the bankrupt's affairs generally.

(2) The official receiver need not comply with paragraph (1) if he has previously reported to creditors with respect to the bankrupt's affairs (so far as known to him) and he is of opinion that there are no additional matters which ought to be brought to their attention.

Statement of affairs dispensed with

6.074

(1) This Rule applies where the bankrupt has been released from the obligation to submit a statement of affairs.

(2) Subject to paragraph (3), as soon as may be after the release has been granted, the official receiver shall send to creditors a report containing a summary of the bankrupt's affairs (so far as within his knowledge), and his observations (if any) with respect to it or the bankrupt's affairs generally.

(3) The official receiver need not comply with paragraph (2) if he has previously reported to creditors with respect to the bankrupt's affairs (so far as known to him) and he is of opinion that there are no additional matters which ought to be brought to their attention.

General rule as to reporting

6.075

(1) The court may, on the official receiver's application, relieve him of any duty imposed on him by this Chapter, or authorise him to carry out the duty in a way other than there required.

(2) In considering whether to act under paragraph (1), the court shall have regard to the cost of carrying out the duty, to the amount of the funds available in the estate, and to the extent of the interest of creditors or any particular class of them.

Bankruptcy order annulled

6.076

If the bankruptcy order is annulled, the duty of the official receiver to send reports under this Chapter ceases.

CHAPTER 7 — CREDITORS' MEETINGS

First meeting of creditors

6.077

(1) If under Article 266(1) the official receiver decides to summon a meeting of creditors, he shall fix a venue for the meeting, not more than 4 months from the date of the bankruptcy order.

(2) When a venue has been fixed, notice of the meeting shall be given—

(a) to the court, and

(b) to every creditor of the bankrupt who is known to the official receiver or is identified in the bankrupt's statement of affairs.

(3) Notice to the court shall be given forthwith; and the notice to creditors shall be given at least 21 days before the date fixed for the meeting.

(4) The notice to creditors shall specify a time and date, not more than 4 days before the date fixed for the meeting, by which they must lodge proofs and (if applicable) proxies, in order to be entitled to vote at the meeting.

(5) Notice of the meeting shall also be given by public advertisement.

(6) Where the official receiver receives a request by a creditor under Article 267 for a meeting of creditors to be summoned, and it appears to him that the request is properly made in accordance with the Order, he shall—

(a) withdraw any notice already given by him under Article 266(2) (that he has decided not to summon such a meeting), and

(b) fix the venue of the meeting for not more than 3 months from his receipt of the creditor's request, and

(7) A meeting summoned by the official receiver under Article 266 or 267 is known as “the first meeting of creditors”.

Business at first meeting

6.078

(1) At the first meeting of creditors, no resolutions shall be taken other than the following—

(a) a resolution to appoint a named insolvency practitioner to be trustee in bankruptcy or two or more named insolvency practitioners as joint trustees;

(b) a resolution to establish a creditors' committee;

(c) (unless it has been resolved to establish a creditors' committee) a resolution specifying the terms on which the trustee is to be remunerated, or to defer consideration of that matter;

(d) (if, and only if, two or more persons are appointed to act jointly as trustee) a resolution specifying whether acts are to be done by both or all of them or by only one;

(e) (where the meeting has been requisitioned under Article 267) a resolution authorising payment out of the estate, as an expense of the bankruptcy, of the cost of summoning and holding the meeting;

(f) a resolution to adjourn the meeting for not more than 3 weeks;

(g) any other resolution which the chairman thinks it right to allow for special reasons.

(2) No resolution shall be proposed which has for its object the appointment of the official receiver as trustee.

General power to call meetings

6.079

(1) The official receiver or the trustee may at any time summon and conduct meetings of creditors for the purpose of ascertaining their wishes in all matters relating to the bankruptcy.

(2) In relation to any meeting of creditors, the person summoning it is referred to as “the convener”.

(3) When a venue for the meeting has been fixed, notice of the meeting shall be given by the convener to every creditor who is known to him or is identified in the bankrupt's statement of affairs.

(4) The notice under paragraph (3) shall be given at least 21 days before the date fixed for the meeting.

(5) The notice to creditors shall specify the purpose for which the meeting is summoned, and a time and date (not more than 4 days before the meeting) by which creditors must lodge proxies and those who have not already lodged proofs must do so, in order to be entitled to vote at the meeting.

(6) Additional notice of the meeting may be given by public advertisement if the convener thinks fit, and shall be so given if the court so orders.

The chairman at a meeting

6.080

(1) Where the convener of a meeting is the official receiver, he, or a person nominated by him, shall be chairman.

(2) A nomination under paragraph (1) shall be in writing, unless the nominee is another official receiver or a deputy official receiver.

(3) Where the convener is other than the official receiver, the chairman shall be he, or a person nominated by him in writing to act.

(4) A person nominated under paragraph (3) must be either—

(a) one who is qualified to act as an insolvency practitioner in relation to the bankrupt, or

(b) an employee of the trustee or his firm who is experienced in insolvency matters.

Requisitioned meetings

6.081

(1) Subject to paragraph (2), a request by creditors to the official receiver for a meeting of creditors to be summoned shall be accompanied by—

(a) a list of the creditors concurring with the request and the amount of their respective claims in the bankruptcy,

(b) from each creditor concurring, written confirmation of his concurrence, and

(2) Paragraph (1)(a) and (b) does not apply if the requisitioning creditor's debt is alone sufficient, without the concurrence of other creditors.

(3) The official receiver, if he considers the request to be properly made in accordance with the Order, shall—

(a) fix a venue for the meeting, to take place not more than 35 days from the receipt of the request, and

(b) give 21 days' notice of the meeting, and of the venue for it, to creditors.

(4) Where a request for a creditors' meeting is made to the trustee, this Rule applies to him as it does to the official receiver.

(5) Paragraph (3) does not apply to a first meeting of creditors.

Attendance at meetings of bankrupt, etc.

6.082

(1) Whenever a meeting of creditors is summoned, the convener shall give at least 21 days' notice of the meeting to the bankrupt.

(2) If the meeting is adjourned, the chairman of the meeting shall (unless for any reason it appears to him to be unnecessary or impracticable) give notice of the fact to the bankrupt, if the latter was not himself present at the meeting.

(3) The convener may, if he thinks fit, give notice to the bankrupt that he is required to be present, or in attendance.

(4) In the case of any meeting, the bankrupt or any other person may, if he has given reasonable notice of his wish to be present, be admitted; but this is at the discretion of the chairman.

(5) The chairman's decision is final as to what (if any) intervention may be made by the bankrupt, or by any other person admitted to the meeting under paragraph (4).

(6) If the bankrupt is not present, and it is desired to put questions to him, the chairman may adjourn the meeting with a view to obtaining his attendance.

(7) Where the bankrupt is present at a creditors' meeting, only such questions may be put to him as the chairman may in his discretion allow.

Notice of meetings by advertisement only

6.083

(1) In the case of any meeting to be held under the Order or the Rules, the court may order that notice of it be given by public advertisement, and not by individual notice to the persons concerned.

(2) In considering whether to act under this Rule, the court shall have regard to the cost of public advertisement, to the amount of the funds available in the estate, and to the extent of the interest of creditors or any particular class of them.

Venue of meetings

6.084

(1) In fixing the venue for a meeting of creditors, the person summoning the meeting shall have regard to the convenience of the creditors.

(2) Meetings shall in all cases be summoned for commencement between 10.00 and 16.00 hours on a business day, unless the court otherwise directs.

(3) With every notice summoning a creditors' meeting there shall be sent out forms of proxy.

Expenses of summoning meetings

6.085

(1) Subject to paragraph (3), the expenses of summoning and holding a meeting of creditors at the instance of any person other than the official receiver or the trustee shall be paid by that person, who shall deposit security for their payment with the trustee or, if no trustee has been appointed, with the official receiver.

(2) The sum to be deposited shall be such as the trustee or (as the case may be) the official receiver determines to be appropriate; and neither shall act without the deposit having been made.

(3) Where a meeting is so summoned, it may vote that the expenses of summoning and holding it shall be payable out of the estate, as an expense of the bankruptcy.

(4) To the extent that any deposit made under this Rule is not required for the payment of expenses of summoning and holding the meeting, it shall be repaid to the person who made it.

Resolutions

6.086

(1) Subject to paragraphs (2), (4) and (5), at a meeting of creditors, a resolution is passed when a majority (in value) of those present and voting, in person or by proxy, have voted in favour of the resolution.

(2) In the case of a resolution for the appointment of a trustee—

(a) if on any vote there are two nominees for appointment, the person who obtains the more support is appointed if such support represents a majority in value of all those present (in person or by proxy) at the meeting and entitled to vote;

(b) if there are three or more nominees, and one of them has a clear majority over both or all the others together, that one is appointed; and

(c) in any other case the chairman shall continue to take votes (disregarding at each vote any nominee who has withdrawn and, if no nominee has withdrawn, the nominee who obtained the least support last time), until a clear majority is obtained for any one nominee.

(3) The chairman may at any time put to the meeting a resolution for the joint appointment of any two or more nominees.

(4) Where a resolution is proposed which affects a person in respect of his remuneration or conduct as trustee, or as proposed or former trustee, the vote of that person, and of any partner or employee of his, shall not be reckoned in the majority required for passing the resolution.

(5) Paragraph (4) applies with respect to a vote given by a person (whether personally or on his behalf by a proxy-holder) either as creditor or as proxy-holder for a creditor (but subject to Rule 8.6).

Chairman of meeting as proxy-holder

6.087

Where the chairman at a meeting holds a proxy for a creditor, which requires him to vote for a particular resolution, and no other person proposes that resolution—

(a) he shall himself propose it, unless he considers that there is good reason for not doing so, and

(b) if he does not propose it, he shall forthwith after the meeting notify his principal of the reason why not.

Suspension of meeting

6.088

Once only in the course of any meeting, the chairman may, in his discretion and without an adjournment, declare the meeting suspended for any period up to one hour.

Adjournment

6.089

(1) Subject to paragraph (2), the chairman at any meeting may, in his discretion, and shall if the meeting so resolves, adjourn it to such time and place as seems to him to be appropriate in the circumstances.

(2) Rule 6.126(3) applies in a case where the trustee or his nominee is chairman and a resolution has been proposed for the trustee's removal.

(3) If within a period of 30 minutes from the time appointed for the commencement of a meeting a quorum is not present, then the chairman may, at his discretion, adjourn the meeting to such time and place as he may appoint.

(4) An adjournment under this Rule shall not be for a period of more than 21 days; and Rule 6.084(1) and (2) applies with regard to the venue of the adjourned meeting.

(5) If there is no person present to act as chairman, some other person present (being entitled to vote) may make the appointment under paragraph (3), with the agreement of others present (being persons so entitled).

(6) Failing agreement, the adjournment shall be to the same time and place in the next following week or, if that is not a business day, to the business day immediately following.

(7) Where a meeting is adjourned under this Rule, proofs and proxies may be used if lodged at any time up to midday on the business day immediately before the adjourned meeting.

Entitlement to vote

6.090

(1) Subject to paragraphs (2) to (6), at a meeting of creditors a person is entitled to vote as a creditor only if—

(a) there has been duly lodged, by the time and date stated in the notice of the meeting, a proof of the debt claimed to be due to him from the bankrupt, and the claim has been admitted under Rule 6.091 for the purpose of entitlement to vote, and

(b) there has been lodged, by that time and date, any proxy requisite for that entitlement.

(2) The court may, in exceptional circumstances, by order declare the creditors, or any class of them, entitled to vote at creditors' meetings, without being required to prove their debts.

(3) Where a creditor is entitled to vote under paragraph (2), the court may, on the application of the trustee, make such consequential orders as it thinks fit (as for example an order treating a creditor as having proved his debt for the purpose of permitting payment of dividend).

(4) A creditor shall not vote in respect of a debt for an unliquidated amount, or any debt whose value is not ascertained, except where the chairman agrees to put upon the debt an estimated minimum value for the purpose of entitlement to vote and admits his proof for that purpose.

(5) A secured creditor is entitled to vote only in respect of the balance (if any) of his debt after deducting the value of his security as estimated by him.

(6) A creditor shall not vote in respect of a debt on, or secured by, a current bill of exchange or promissory note, unless he is willing—

(a) to treat the liability to him on the bill or note of every person who is liable on it antecendently to the bankrupt, and against whom a bankruptcy order has not been made (or, in the case of a company, which has not gone into liquidation), as a security in his hands, and

(b) to estimate the value of the security and (for the purpose of entitlement to vote, but not for dividend) to deduct it from his proof.

Admission and rejection of proof

6.091

(1) At any creditors' meeting the chairman has power to admit or reject a creditor's proof for the purpose of his entitlement to vote; and the power is exercisable with respect to the whole or any part of the proof.

(2) The chairman's decision under this Rule, or in respect of any matter arising under Rule 6.090, is subject to appeal to the court by any creditor, or by the bankrupt.

(3) If the chairman is in doubt whether a proof should be admitted or rejected, he shall mark it as objected to and allow the creditor to vote, subject to his vote being subsequently declared invalid if the objection to the proof is sustained.

(4) If on an appeal the chairman's decision is reversed or varied, or a creditor's vote is declared invalid, the court may order that another meeting be summoned, or make such other order as it thinks just.

(5) Neither the official receiver nor any person nominated by him to be chairman is personally liable for costs incurred by any person in respect of an application to the court under this Rule; and the chairman (if other than the official receiver or a person so nominated) is not so liable unless the court makes an order to that effect.

Record of proceedings

6.092

(1) The chairman at any creditors' meeting shall cause minutes of the proceedings at the meeting, signed by him, to be retained by him as part of the records of the bankruptcy.

(2) He shall also cause to be made up and kept a list of all the creditors who attended the meeting.

(3) The minutes of the meeting shall include a record of every resolution passed; and it is the chairman's duty to see to it that particulars of all such resolutions, certified by him, are filed in court not more than 21 days after the date of the meeting.

Bankruptcy on petition under Article 238 (1)(d)

6.093

Where a bankruptcy order is made against a solicitor on a petition under Article 238(1)(d), the Law Society of Northern Ireland may be represented at any meeting of creditors and is to be given or sent any notice or report under the Order or the Rules which is required or authorised to be given or sent to creditors.

CHAPTER 8 — PROOF OF BANKRUPTCY DEBTS

SECTION A: PROCEDURE FOR PROVING

Meaning of “prove”

6.094

(1) A person claiming to be a creditor of the bankrupt and wishing to recover his debt in whole or in part must (subject to any order of the court under Rule 6.090(2)) submit his claim in writing to the official receiver, where acting as receiver and manager, or to the trustee.

(2) The creditor is referred to as “proving” for his debt; and the document by which he seeks to establish his claim is his “proof”.

(3) Subject to paragraphs (4), (5) and (6), the proof must be in the form known as “proof of debt” (whether the form prescribed by the Rules, or a substantially similar form), which shall be made out by or under the directions of the creditor, and signed by him or a person authorised in that behalf.

(4) Where a debt is due to a Minister of the Crown or a Government Department, the proof need not be in that form, but it must show all such particulars of the debt as are required in the form used by other creditors, and as are relevant in the circumstances.

(5) Where an existing trustee proves in a later bankruptcy under Article 308(5), the proof must be in Form 6.41.

(6) Where a trustee so requires under Rule 6.097, the proof must be in the form of an affidavit.

Supply of forms

6.095

(1) Forms of proof shall be sent out by the official receiver or the trustee to every creditor of the bankrupt who is known to the sender, or is identified in the bankrupt's statement of affairs.

(2) The forms shall accompany (whichever is first)—

(a) the notice to creditors under Article 266(2) (official receiver's decision not to call meeting of creditors), or

(b) the first notice calling a meeting of creditors, or

(c) where a certificate of summary administration has been issued by the court, the notice sent by the official receiver under Rule 6.047(2), or

(d) where a trustee is appointed by the court, the notice of his appointment sent by him to creditors.

(3) Where, with the leave of the court under Article 270(6), the trustee advertises his appointment, he shall send proofs to the creditors within 4 months after the date of the bankruptcy order.

(4) Paragraphs (1) to (3) are subject to any order of the court dispensing with the requirement to send out forms of proof, or altering the time at which the forms are to be sent.

Contents of proof

6.096

(1) Subject to Rule 6.094(4), the following matters shall be stated in a creditor's proof of debt—

(a) the creditor's name and address;

(b) the total amount of his claim as at the date of the bankruptcy order;

(d) whether or not the claim includes value added tax;

(e) whether the whole or any part of the debt falls within any (and if so which) of the categories of preferential debts under Article 346 of, and Schedule 4 to, the Order (as read with Schedule 4 to the Social Security Pensions (Northern Ireland) Order 1975 [^f00024]);

(f) particulars of how and when the debt was incurred by the debtor;

(g) particulars of any security held, the date when it was given and the value which the creditor puts upon it; and

(h) the name, address and authority of the person signing the proof (if other than the creditor himself).

(2) There shall be specified in the proof any documents by reference to which the debt can be substantiated; but (subject to paragraph (3)) it is not essential that such documents be attached to the proof or submitted with it.

(3) The trustee, or the convener or chairman of any meeting, may call for any document or other evidence to be produced to him, where he thinks it necessary for the purpose of substantiating the whole or any part of the claim made in the proof.

Claim established by affidavit

6.097

(1) The trustee may, if he thinks it necessary, require a claim of debt to be verified by affidavit, for which purpose there shall be used the form known as “affidavit of debt”.

(2) An affidavit may be required notwithstanding that a proof of debt has already been lodged.

(3) The affidavit may be sworn before an official receiver or before an officer of the Department or of the court duly authorised in that behalf.

Cost of proving

6.098

(1) Subject to paragraphs (2) and (3), every creditor bears the cost of proving his own debt, including such as may be incurred in providing documents or evidence under Rule 6.096(3).

(2) Costs incurred by the trustee in estimating the value of a bankruptcy debt under Article 295(3) (debts not bearing a certain value) fall on the estate, as an expense of the bankruptcy.

(3) Paragraphs (1) and (2) apply unless the court otherwise orders.

Trustee to allow inspection of proofs

6.099

The trustee shall, so long as proofs lodged with him are in his hands, allow them to be inspected, at all reasonable times on any business day, by any of the following persons—

(a) any creditor who has submitted his proof of debt (unless his proof has been wholly rejected for purposes of dividend or otherwise),

(b) the bankrupt, and

Transmission of proofs to trustee

6.100

(1) Where a trustee is appointed, the official receiver shall forthwith transmit to him all the proofs which he has so far received, together with an itemised list of them.

(2) The trustee shall sign the list by way of receipt for the proofs, and return it to the official receiver.

(3) From then on, all proofs of debt shall be sent to the trustee and retained by him.

Admission and rejection of proofs for dividend

6.101

(1) A proof may be admitted for dividend either for the whole amount claimed by the creditor, or for part of that amount.

(2) If the trustee rejects a proof in whole or in part, he shall prepare a written statement of his reasons for doing so, and send it forthwith to the creditor.

Appeal against decision on proof

6.102

(1) If a creditor is dissatisfied with the trustee's decision with respect to his proof (including any decision on the question of preference), he may apply to the court for the decision to be reversed or varied.

(2) An application under paragraph (1) must be made within 21 days of his receiving the statement sent under Rule 6.101(2).

(3) The bankrupt or any other creditor may, if dissatisfied with the trustee's decision admitting or rejecting the whole or any part of a proof, make such an application within 21 days of becoming aware of the trustee's decision.

(4) Where application is made to the court under this Rule, the court shall fix a venue for the application to be heard, notice of which shall be sent by the applicant to the creditor who lodged the proof in question (if it is not himself) and to the trustee.

(5) The trustee shall, on receipt of the notice, file in court the relevant proof, together (if appropriate) with a copy of the statement sent under Rule 6.101(2).

(6) After the application has been heard and determined, the proof shall, unless it has been wholly disallowed, be returned by the court to the trustee.

(7) The official receiver is not personally liable for costs incurred by any person in respect of an application under this Rule; and the trustee (if other than the official receiver) is not so liable unless the court makes an order to that effect.

Withdrawal or variation of proof

6.103

A creditor's proof may at any time, by agreement between himself and the trustee, be withdrawn or varied as to the amount claimed.

Expunging of proof by the court

6.104

(1) The court may expunge a proof or reduce the amount claimed—

(a) on the trustee's application, where he thinks that the proof has been improperly admitted, or ought to be reduced; or

(b) on the application of a creditor, if the trustee declines to interfere in the matter.

(2) Where application is made to the court under this Rule, the court shall fix a venue for the application to be heard, notice of which shall be sent by the applicant—

(a) in the case of an application by the trustee, to the creditor who made the proof, and

(b) in the case of an application by a creditor, to the trustee and to the creditor who made the proof (if not himself).

SECTION B: QUANTIFICATION OF CLAIM

Negotiable instruments, etc.

6.105

Unless the trustee allows, a proof in respect of money owed on a bill of exchange, promissory note, cheque or other negotiable instrument or security cannot be admitted unless there is produced the instrument or security itself or a copy of it, certified by the creditor or his authorised representative to be a true copy.

Secured creditors

6.106

(1) If a secured creditor realises his security, he may prove for the balance of his debt, after deducting the amount realised.

(2) If a secured creditor voluntarily surrenders his security for the general benefit of creditors, he may prove for his whole debt, as if it were unsecured.

Discounts

6.107

There shall in every case be deducted from the claim all trade and other discounts which would have been available to the bankrupt but for his bankruptcy, except any discount for immediate, early or cash settlement.

Debt in foreign currency

6.108

(1) For the purpose of proving a debt incurred or payable in a currency other than sterling, the amount of the debt shall be converted into sterling at the official exchange rate prevailing on the date of the bankruptcy order.

(2) “The official exchange rate” is the middle market rate at the Bank of England, as published for the date in question. In the absence of any such published rate, it is such rate as the court determines.

Payments of a periodical nature

6.109

(1) In the case of rent and other payments of a periodical nature, the creditor may prove for any amounts due and unpaid up to the date of the bankruptcy order.

(2) Where at that date any payment was accruing due, the creditor may prove for so much as would have fallen due at that date, if accruing from day to day.

Interest

6.110

(1) In the circumstances described in paragraphs (2) and (3), and subject to paragraph (4), the creditor's claim may include interest on the debt for periods before the bankruptcy order, although not previously reserved or agreed.

(2) If the debt is due by virtue of a written instrument and payable at a certain time, interest may be claimed for the period from that time to the date of the bankruptcy order.

(3) If the debt is due otherwise, interest may only be claimed if, before the presentation of the bankruptcy petition, a demand for payment was made in writing by or on behalf of the creditor, and notice given that interest would be payable from the date of the demand to the date of payment and for all the purposes of the Order and the Rules shall be chargeable at a rate not exceeding that mentioned in paragraph (5).

(4) Interest under paragraph (3) may only be claimed for the period from the date of the demand to that of the bankruptcy order.

(5) The rate of interest to be claimed under paragraphs (2) and (3) is the rate applicable to a money Judgment of the High Court on the date of the bankruptcy order.

Debt payable at future time

6.111

A creditor may prove for a debt of which payment was not yet due at the date of the bankruptcy order, but subject to Rule 11.13 (adjustment of dividend where payment made before time).

CHAPTER 9 — SECURED CREDITORS

Value of security

6.112

(1) A secured creditor may, with the agreement of the trustee or the leave of the court, at any time alter the value which he has, in his proof of debt, put upon his security.

(2) However, if a secured creditor—

(a) being the petitioner, has in the petition put a value on his security, or

(b) has voted in respect of the unsecured balance of his debt,

he may re-value his security only with leave of the court.

Surrender for non-disclosure

6.113

(1) If a secured creditor omits to disclose his security in his proof of debt, he shall surrender his security for the general benefit of creditors, unless the court, on application by him, relieves him from the effect of this Rule on the ground that the omission was inadvertent or the result of honest mistake.

(2) If the court grants that relief, it may require or allow the creditor's proof of debt to be amended, on such terms as may be just.

Redemption by trustee

6.114

(1) The trustee may at any time give notice to a creditor whose debt is secured that he proposes, at the expiration of 28 days from the date of the notice, to redeem the security at the value put upon it in the creditor's proof.

(2) The creditor then has 21 days (or such longer period as the trustee may allow) in which, if he so wishes, to exercise his right to re-value his security (with the leave of the court, where Rule 6.112(2) applies).

(3) If the creditor re-values his security, the trustee may only redeem at the new value.

(4) If the trustee redeems the security, the cost of transferring it is borne by the estate.

(5) A secured creditor may at any time, by a notice in writing, call on the trustee to elect whether he will or will not exercise his power to redeem the security at the value then placed on it; and the trustee then has 6 months in which to exercise the power or determine not to exercise it.

Test of security's value

6.115

(1) Subject to paragraphs (2) and (3), the trustee, if he is dissatisfied with the value which a secured creditor puts on his security (whether in his proof or by way of re-valuation under Rule 6.114), may require any property comprised in the security to be offered for sale.

(2) The terms of sale shall be such as may be agreed, or as the court may direct; and if the sale is by auction, the trustee on behalf of the estate, and the creditor on his own behalf, may appear and bid.

(3) This Rule does not apply if the security has been re-valued and the revaluation has been approved by the court.

Realisation of security by creditor

6.116

If a creditor who has valued his security subsequently realises it (whether or not at the instance of the trustee)—

(a) the net amount realised shall be substituted for the value previously put by the creditor on the security, and

(b) that amount shall be treated in all respects as an amended valuation made by him.

CHAPTER 10 — THE TRUSTEE IN BANKRUPTCY

SECTION A: APPOINTMENT AND ASSOCIATED FORMALITIES

Appointment by creditors' meeting

6.117

(1) This Rule applies where a person has been appointed trustee by resolution of a creditors' meeting.

(2) The chairman of the meeting shall certify the appointment, but not unless and until the person to be appointed has provided him with a written statement to the effect that he is an insolvency practitioner, duly qualified under the Order to act as trustee in relation to the bankrupt, and that he consents so to act.

(3) The trustee's appointment is effective from the date on which the appointment is certified, that date to be endorsed on the certificate.

(4) The chairman of the meeting (if not himself the official receiver) shall send the certificate to the official receiver.

(5) The official receiver shall in any case send the certificate to the trustee and file a copy of it in court.

Appointment by the court

6.118

(1) This Rule applies where the court under Article 270(2), (3) or (4) appoints the trustee.

(2) The court's order shall not issue unless and until the person appointed has filed in court a statement to the effect that he is an insolvency practitioner, duly qualified under the Order to be the trustee, and that he consents so to act.

(3) Thereafter, the court shall send 2 copies of the order to the official receiver. One of the copies shall be sealed, and this shall be sent by him to the person appointed as trustee.

(4) The trustee's appointment takes effect from the date of the order.

Appointment by Department

6.119

(1) This Rule applies where the official receiver—

(a) under Article 268 or 273, refers to the Department the need for an appointment of a trustee, or

(b) under Article 269, applies to the Department to make the appointment.

(2) If the Department makes an appointment it shall send 2 copies of the certificate of appointment to the official receiver, who shall transmit one such copy to the person appointed, and file the other copy in court.

(3) The certificate shall specify the date from which the trustee's appointment is to be effective.

Authentication of trustee's appointment

6.120

Where a trustee is appointed under Rule 6.117, 6.118 or 6.119, a sealed copy of the order of appointment or (as the case may be) a copy of the certificate of his appointment may in any proceedings be adduced as proof that he is duly authorised to exercise the powers and perform the duties of trustee of the bankrupt's estate.

Advertisement of appointment

6.121

(1) Where the trustee is appointed by a creditors' meeting, he shall, forthwith after receiving his certificate of appointment, give notice of his appointment in such newspaper as he thinks most appropriate for ensuring that it comes to the notice of the bankrupt's creditors.

(2) The expense of giving the notice shall be borne in the first instance by the trustee; but he is entitled to be reimbursed by the estate, as an expense of the bankruptcy.

(3) Paragraph (2) applies also in the case of the notice or advertisement under Article 269(4) (appointment of trustee by Department), and of the notice or advertisement under Article 270(6) (appointment by the court).

Hand-over of estate to trustee

6.122

(1) This Rule applies only where—

(a) the bankrupt's estate vests in the trustee under Chapter IV of Part IX of the Order, following a period in which the official receiver is the receiver and manager of the estate according to Article 260, or

(b) the trustee is appointed in succession to the official receiver acting as trustee.

(2) When the trustee's appointment takes effect, the official receiver shall forthwith do all that is required for putting him into possession of the estate.

(3) On taking possession of the estate, the trustee shall discharge any balance due to the official receiver on account of—

(a) expenses properly incurred by him and payable under the Order or the Rules, and

(b) any advances made by him in respect of the estate, together with interest on such advances at the rate applicable to a money judgment of the High Court on the date of the bankruptcy order.

(4) Alternatively, the trustee may (before taking office) give to the official receiver a written undertaking to discharge any such balance out of the first realisation of assets.

(5) The official receiver has a charge on the estate in respect of any sums due to him under paragraph (3). But, where the trustee has realised assets with a view to making those payments, the official receiver's charge does not extend in respect of sums deductible by the trustee from the proceeds of realisation, as being expenses properly incurred therein.

(6) The trustee shall from time to time out of the realisation of assets discharge all guarantees properly given by the official receiver for the benefit of the estate, and shall pay all the official receiver's expenses.

(7) The official receiver shall give to the trustee all such information, relating to the affairs of the bankrupt and the course of the bankruptcy, as he (the official receiver) considers to be reasonably required for the effective discharge by the trustee of his duties in relation to the estate.

(8) The trustee shall also be furnished with any report of the official receiver under Chapter 6.

SECTION B: RESIGNATION AND REMOVAL; VACATION OF OFFICE

Creditors' meeting to receive trustee's resignation

6.123

(1) Before resigning his office, the trustee must call a meeting of creditors for the purpose of receiving his resignation. The notice summoning the meeting shall indicate that this is the purpose, or one of the purposes, of it, and shall draw the attention of creditors to Rule 6.132 with respect to the trustee's release.

(2) A copy of the notice shall at the same time also be sent to the official receiver.

(3) The notice to creditors under paragraph (1) must be accompanied by an account of the trustee's administration of the bankrupt's estate, including—

(a) a summary of his receipts and payments and

(b) a statement by him that he has reconciled his account with that which is held by the Department in respect of the bankruptcy.

(4) Subject to paragraph (5), the trustee may only proceed under this Rule on grounds of ill health or because—

(a) he intends ceasing to be in practice as an insolvency practitioner, or

(b) there is some conflict of interest or change of personal circumstances which precludes or makes impracticable the further discharge by him of the duties of trustee.

(5) Where two or more persons are acting as trustee jointly, any one of them may proceed under this Rule (without prejudice to the continuation in office of the other or others) on the ground that, in his opinion and that of the other or others, it is no longer expedient that there should continue to be the present number of joint trustees.

(6) If there is no quorum present at the meeting summoned to receive the trustee's resignation, the meeting is deemed to have been held, a resolution is deemed to have been passed that the trustee's resignation be accepted and the creditors are deemed not to have resolved against the trustee having his release.

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