The Insolvency (Amendment) Rules (Northern Ireland) 2006

PART 3 — AMENDMENTS TO PART 3 OF THE PRINCIPAL RULES

Amendment to Rule 3.09

9

After Rule 3.09(4) there shall be inserted—

(5) The receiver’s report under Article 58(1) shall state, to the best of his knowledge and belief— (a) an estimate of the value of the prescribed part (whether or not he proposes to make an application under Article 150A(5) or whether Article 150A(3) applies); and (b) an estimate of the value of the company’s net property. (6) Nothing in this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect. (7) The report shall also state whether, and if so why, the receiver proposes to make an application to court under Article 150A(5).

Amendment to Rule 3.21

10

In paragraph (4) of Rule 3.21 after the word “bankrupt,” there shall be inserted “or a disqualified director,” and for the words “composition or arrangement with his creditors” there shall be substituted “bankruptcy restrictions order”.

Amendment to Rule 3.23

11

In paragraph (1)(a) of Rule 3.23 omit the words “, or compounds or arranges with his creditors”.

Insertion of new Chapter 8 of Part 3 of the principal Rules

12

After Chapter 7 of Part 3 of the principal rules there shall be inserted—

(3.40) (1) This Rule applies where— (a) a receiver (other than an administrative receiver) is appointed by the court or otherwise under a charge which as created was a floating charge; and (b) Article 150A applies. (2) Within 3 months (or such longer period as the court may allow) of the date of his appointment the receiver shall send to creditors, details of whose names and addresses are available to him, notice of his appointment and a report which will include the following matters— (a) to the best of the receiver’s knowledge and belief— (i) an estimate of the value of the prescribed part (whether or not he proposes to make an application to the court under Article 150A(5) or Article 150A(3) applies); and (ii) an estimate of the value of the company’s net property; (b) whether, and if so, why, he proposes to make an application to court under Article 150A(5); and (c) whether he proposes to present a petition for the winding up of the company. (3) Nothing in this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect. (4) Where the receiver thinks that it is impracticable to send the report required under paragraph (2) or where full details of the unsecured creditors of the company are not available to him, he may, instead of sending a report as required by this Rule, publish a notice to the same effect in such newspaper as he thinks most appropriate for ensuring that it comes to the notice of the company’s unsecured creditors. - [E.R. 3.39] (3. 41) Where Rule 3.40 applies— (a) the receiver may present a petition for the winding up of the company if the ground of the petition is that in Article 102(f); (b) where a liquidator or administrator has been appointed to the company, the receiver shall deliver up the sums representing the prescribed part to him; (c) in any other case, the receiver shall apply to the court for directions as to the manner in which he is to discharge his duty under Article 150A(2)(a) and shall act in accordance with such directions as are given by the court. - [E.R. 3.40]

PART 4 — AMENDMENTS TO PART 4 OF THE PRINCIPAL RULES

Amendment to Rule 4.001

13

At end of paragraph (6) of Rule 4.001 there shall be inserted—

(7) In a voluntary winding up which is commenced by the registration of a notice under paragraph 84(2) of Schedule B1 to the Order, the following provisions of this Part shall not apply— - Rules 4.037, 4.042, 4.053, 4.056, 4.058, 4.069, 4.107, 4.110, 4.113, 4.160, 4.161, 4.216-4.220.

Amendments to Rule 4.007

14

In Rule 4.007—

• (a) for paragraph (2) there shall be substituted—

(2) No petition shall be filed unless there is produced on presentation of the petition a receipt for the deposit payable or paragraph (2A) applies. (2A) This paragraph applies in any case where the Department has given written notice to the court that the petitioner has made suitable alternative arrangements for the payment of the deposit to the official receiver and such notice has not been revoked in relation to the petitioner in accordance with paragraph (2B). (2B) A notice of the kind referred to in paragraph (2A) may be revoked in relation to the petitioner in whose favour it is given by a further notice in writing to the court stating that the earlier notice is revoked in relation to the petitioner.

• (b) in paragraph (4)(c) for the words “if an administration order is in force in relation to the company” there shall be substituted “if the company is in administration”;

• (c) in paragraph (7)(b) for the words “the number of the petition on which the administration order was made and the date of that order” there shall be substituted “the court case number and the date that the company entered administration”;

• (d) for paragraph (7)(c) there shall be substituted—

(c) where applicable, contain an application under paragraph 80 of Schedule B1, requesting that the appointment of the administrator shall cease to have effect.

Amendment to Rule 4.010

15

In paragraph (2) of Rule 4.010 for the words “an administration order is in force in relation to it” there shall be substituted “the company is in administration”.

Amendment to Rule 4.011

16

In Rule 4.011(5)(a) after “the name” there shall be inserted “and registered number”.

Amendment to Rule 4.012

17

After paragraph (7) of Rule 4.012 there shall be inserted—

(8) The affidavit shall state whether, in the opinion of the person making the application, (i) the EC Regulation will apply and (ii) if so, whether the proceedings will be main proceedings or territorial proceedings.

Amendment to Rule 4.029

18

In Rule 4.029—

• (a) in paragraph (2)—

• (i) in sub-paragraph (a) for “2” there shall be substituted “3”; and

• (ii) in sub-paragraph (b)(i) for “2” there shall be substituted “3”; and

• (b) for paragraph (3) there shall be substituted—

(3) Of the 3 copies of the order sent to the official receiver under paragraph (2)(a), or to another person under paragraph (2)(b)(i) of this Rule— (i) one shall in each case be sent by the recipient to the company, or if a liquidator has been appointed for the company’s voluntary winding-up, to him; and (ii) one shall be sent with Form 4.16A to the registrar.

Amendment to Rule 4.047

19

After Rule 4. 047(1) there shall be inserted—

(1A) The official receiver shall also include in the report under paragraph (1)— (a) to the best of his knowledge and belief— (i) an estimate of the value of the prescribed part (whether or not he proposes to make an application to the court under Article 150A(5) or Article 150A(3) applies); (ii) an estimate of the value of the company’s net property; and (b) whether, and if so, why, he proposes to make an application to court under Article 150A(5). (1B) Nothing in this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.

Amendment to Rule 4.053

20

After Rule 4.053 (which becomes paragraph (1) of Rule 4.053) there shall be inserted—

(2) The report under paragraph (1) shall also include— (a) to the best of the liquidator’s knowledge and belief— (i) an estimate of the value of the prescribed part (whether or not he proposes to make an application to court under Article 150A(5) or Article 150A(3) applies); and (ii) an estimate of the value of the company’s net property; and (b) whether, and if so, why, the liquidator proposes to make an application to court under Article 150A(5). (3) Nothing in this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.

Amendments to Rule 4.054

21

After the words “formerly its administrator” there shall be inserted the words “or a person is appointed as liquidator upon the registration of a notice under paragraph 84(2) of Schedule B1 to the Order” and for the words “Rule 2.19” there shall be substituted the words “Rule 2.034”.

Amendment to Rule 4.056

22

In Rule 4.056-CVL(2) after “summoning the meeting shall” there shall be inserted “state the name of the company and the registered number of the company, and”.

Amendment to Rule 4.079

23

After paragraph (7) of Rule 4.079 there shall be inserted—

(8) Where a winding up is immediately preceded by an administration, a creditor proving in the administration shall be deemed to have proved in the winding up.

Substitution of Rule 4.080

24

For Rule 4.080 there shall be substituted—

(NO CVL APPLICATION) (4.080) A form of proof shall be sent to any creditor of the company by the liquidator where the creditor so requests. - [E.R. 4.74]

Amendment to Rule 4.081

25

For Rule 4.081(1) there shall be substituted—

(1) Subject to Rule 4.079(5), the following matters shall be stated in a creditor’s proof of debt— (a) the creditor’s name and address, and, if a company, its company registration number; (b) the total amount of his claim (including any Value Added Tax) as at the date on which the company went into liquidation; (c) whether or not that amount includes outstanding uncapitalised interest; (d) particulars of how and when the debt was incurred by the company; (e) particulars of any security held, the date when it was given and the value which the creditor puts upon it; (f) details of any reservation of title in respect of goods to which the debt refers; and (g) the name, and address and authority of the person signing the proof (if other than the creditor himself).

Substitution of Rule 4.096

26

For Rule 4.096 there shall be substituted—

(4.096) (1) This Rule applies where, before the company goes into liquidation there have been mutual credits, mutual debts or other mutual dealings between the company and any creditor of the company proving or claiming to prove for a debt in the liquidation. (2) The reference in paragraph (1) of this Rule to mutual credits, mutual debts or other mutual dealings does not include— (a) any debt arising out of an obligation incurred at a time when the creditor had notice that— (i) a meeting of creditors had been summoned under Article 84; or (ii) a petition for the winding up of the company was pending; (b) any debt arising out of an obligation where— (i) the liquidation was immediately preceded by an administration; and (ii) at the time the obligation was incurred the creditor had notice that an application for an administration order was pending or a person had given notice of intention to appoint an administrator; (c) any debt arising out of an obligation incurred during an administration which immediately preceded the liquidation; or (d) any debt which has been acquired by a creditor by assignment or otherwise, pursuant to an agreement between the creditor and any other party where that agreement was entered into— (i) after the company went into liquidation; (ii) at a time when the creditor had notice that a meeting of creditors had been summoned under Article 84; (iii) at a time when the creditor had notice that a winding up petition was pending; (iv) where the liquidation was immediately preceded by an administration, at a time when the creditor had notice that an application for an administration order was pending or a person had given notice of intention to appoint an administrator; or (v) during an administration which immediately preceded the liquidation. (3) An account shall be taken of what is due from each party to the other in respect of the mutual dealings, and the sums due from one party shall be set off against the sums due from the other. (4) A sum shall be regarded as being due to or from the company for the purposes of paragraph (3) of this Rule whether— (a) it is payable at present or in the future; (b) the obligation by virtue of which it is payable is certain or contingent; or (c) its amount is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion. (5) Rule 4.092 shall also apply for the purposes of this Rule to any obligation to or from the company which, by reason of its being subject to any contingency or for any other reason, does not bear a certain value. (6) Rules 4.097 to 4.099 shall apply for the purposes of this Rule in relation to any sums due to the company which— (a) are payable in a currency other than sterling; (b) are of a periodical nature; or (c) bear interest. (7) Rule 11.13 shall apply for the purposes of this Rule to any sum due to or from the company which is payable in the future. (8) Only the balance (if any) of the account owed to the creditor is provable in the liquidation. Alternatively the balance (if any) owed to the company shall be paid to the liquidator as part of the assets except where all or part of the balance results from a contingent or prospective debt owed by the creditor and in such a case the balance (or that part of it which results from the contingent or prospective debt) shall be paid if and when that debt becomes due and payable. (9) In this Rule “obligation” means an obligation however arising, whether by virtue of an agreement, rule of law or otherwise. - [E.R. 4.90]

Amendment to Rule 4.097

27

In Rule 4.097—

• (a) at the end of paragraph (1) there shall be inserted “or, if the liquidation was immediately preceded by an administration, on the date that the company entered administration”.

• (b) In paragraph (2) for the words “middle market rate at the Bank of England” there shall be substituted “middle exchange rate on the London Foreign Exchange Market at the close of business”.

Amendment to Rule 4.098

28

At the end of Rule 4.098(1) there shall be inserted “or, if the liquidation was immediately preceded by an administration, up to the date that the company entered administration”.

Substitution of Rule 4.099

29

For Rule 4.099 there shall be substituted—

(4.099) (1) Where a debt proved in the liquidation bears interest, that interest is provable as part of the debt except in so far as it is payable in respect of any period after the company went into liquidation or, if the liquidation was immediately preceded by an administration, any period after the date that the company entered administration. (2) In the circumstances described in paragraphs (3) and (4) of this Rule, and subject to paragraph (5) of this Rule, the creditor’s claim may include interest on the debt for periods before the company went into liquidation, although not previously reserved or agreed. (3) 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 when the company went into liquidation. (4) If the debt is due otherwise, interest may only be claimed if, before that date, a demand for payment of the debt 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. (5) Interest under paragraph (4) may only be claimed for the period from the date of the demand to that of the company’s going into liquidation and for all the purposes of the Order and the Rules shall be chargeable at a rate not exceeding that mentioned in paragraph (6). (6) The rate of interest to be claimed under paragraphs (3) and (4) is the rate applicable to a money judgment of the High Court on the date when the company went into liquidation. - [E.R. 4.93]

Amendments to Rule 4.100

30

In Rule 4.100 after “went into liquidation,” there shall be inserted “or, if the liquidation was immediately preceded by an administration, on the date that the company entered administration”.

Amendment to Rule 4.112

31

After the words “the court’s order” there shall be inserted the words “or a copy of the notice registered in accordance with paragraph 84(2) of Schedule B1 to the Order”.

Amendment to Rule 4.131

32

In Rule 4.131—

• (a) in paragraph (1) for the words “who have proved their debts” there shall be substituted “of which he is aware”;

• (b) after paragraph (2) there shall be inserted—

(2A) The summary of receipts and payments referred to in paragraph (2) shall also include a statement as to the amount paid to unsecured creditors by virtue of the application of Article 150A (prescribed part).

Amendment to Rule 4.132

33

In Rule 4.132—

• (a) in paragraph (1) for the words “who have proved their debts” there shall be substituted “of which he is aware”;

• (b) after paragraph (2) there shall be inserted—

(2A) The liquidator’s report shall also contain a statement as to the amount paid to unsecured creditors by virtue of the application of Article 150A (prescribed part).

• (c) in paragraph (4) for the words “official receiver” there shall be substituted “Department”.

Insertion of new Rule 4.132A

34

After Rule 4.132 there shall be inserted—

(4.132A) (1) The court may, on the liquidator or official receiver’s application, relieve him of any duty imposed on him by Rule 4.131 or 4.132, or authorise him to carry out the duty in a way other than there required. (2) In considering whether to act under this Rule, the court shall have regard to the cost of carrying out the duty, to the amount of the assets available, and to the extent of the interest of creditors or contributories, or any particular class of them. - [E.R. 4.125A]

Amendments to Rule 4.133

35

In Rule 4.133—

• (a) in paragraph (2) after “the account required under the Article” there shall be inserted “or paragraph (4) of this Rule”; and

• (b) after paragraph (3) there shall be inserted—

(4) The account of the winding up required under Article 92 shall also include a statement as to the amount paid to unsecured creditors by virtue of the application of Article 150A (prescribed part).

Amendment to Rule 4.134

36

For paragraph (6) of Rule 4.134 there shall be substituted—

(6) Where the liquidator is not the official receiver and his remuneration is not fixed as above, the liquidator shall be entitled to remuneration fixed in accordance with the provisions of Rule 4.134A.

Insertion of New Rules 4.134A and 4.134B

37

After Rule 4.134 there shall be inserted—

(4.134A) (1) This Rule applies where the liquidator is not the official receiver and his remuneration is not fixed in accordance with Rule 4.134. (2) The liquidator shall be entitled by way of remuneration for his services as such, to such sum as is arrived at by— (a) first applying the realisation scale set out in Schedule 4 to the monies received by him from the realisation of the assets of the company (including any Value Added Tax thereon but after deducting any sums paid to secured creditors in respect of their securities and any sums spent out of money received in carrying on the business of the company); and (b) then by adding to the sum arrived at under sub-paragraph (a) such sum as is arrived at by applying the distribution scale set out in Schedule 4 to the value of assets distributed to creditors of the company (including payments made in respect of preferential debts) and to contributories. - [E.R. 4.127A] (4.134B) (1) This Rule applies where the liquidator is not the official receiver and realises assets on behalf of a secured creditor. (2) Where the assets realised for a secured creditor are subject to a charge which when created was a mortgage or a fixed charge, the liquidator shall be entitled to such sum by way of remuneration as is arrived at by applying the realisation scale set out in Schedule 4 to the monies received by him in respect of the assets realised (including any sums received in respect of Value Added Tax thereon but after deducting any sums spent out of money received in carrying on the business of the company). (3) Where the assets realised for a secured creditor are subject to a charge which when created was a floating charge, the liquidator shall be entitled to such sum by way of remuneration as is arrived at by— (a) first applying the realisation scale set out in Schedule 4 to monies received by him from the realisation of those assets (including any Value Added Tax thereon but ignoring any sums received which are spent in carrying on the business of the company); and (b) then by adding to the sum arrived at under sub-paragraph (a) such sum as is arrived at by applying the distribution scale set out in Schedule 4 to the value of the assets distributed to the holder of the charge and payments made in respect of preferential debts. - [E.R. 4.127B]

Amendment to Rule 4.135

38

Omit Rule 4.135(1).

Amendment to Rule 4.145

39

Omit Rule 4.145(2).

Amendment to Rule 4.156

40

In Rule 4.156—

• (a) for paragraph (4) there shall be substituted—

(4) Where the liquidator’s remuneration is not fixed under paragraphs (2) and (3) of this Rule, the liquidator shall be entitled to remuneration calculated in accordance with the provisions of Rule 4.156A.

• (b) in paragraph (5) after “Rule 4.135” there shall be inserted “and Rule 4.134B”.

Insertion of new Rule 4.156A

41

After Rule 4.156 there shall be inserted—

(4.156A) (1) This Rule applies where the liquidator’s remuneration is not fixed in accordance with Rule 4.156. (2) The liquidator shall be entitled by way of remuneration for his services as such, to such sum as is arrived at by— (a) first applying the realisation scale set out in Schedule 4 to the monies received by him from the realisation of the assets of the company (including any Value Added Tax thereon but after deducting any sums paid to secured creditors in respect of their securities and any sums spent out of money received in carrying on the business of the company); and (b) then by adding to the sum arrived at under sub-paragraph (a) such sum as is arrived at by applying the distribution scale set out in Schedule 4 to the value of assets distributed to creditors of the company (including payments made in respect of preferential debts) and to contributories. - [E.R. 4.148B]

Amendment to Rule 4.167

42

In paragraph (4) of Rule 4.167 after the word “bankrupt” there shall be inserted “or a disqualified director,” and for the words “composition or arrangement with his creditors” there shall be substituted “bankruptcy restrictions order”.

Amendment to Rule 4.169

43

In paragraph (1)(a) of Rule 4.169 omit the words “or compounds or arranges with his creditors”.

Amendment to Rule 4.182

44

In paragraph (1)(a) of Rule 4.182 for the words “immediately upon the discharge of an administration order under Part III of the Order” there shall be substituted the words “by the court upon an application under paragraph 80 of Schedule B1 to the Order”.

Amendments to Rule 4.183

45

In Rule 4.183—

• (a) in paragraph (1) for the words “Article 38” there shall be substituted the words “paragraph 58 of Schedule B1 to the Order”; and

• (b) in paragraph (2) for the words “Article 38” there shall be substituted the words “paragraph 58 of Schedule B1 to the Order”.

Amendment to Rule 4.184

46

In paragraph (1) of Rule 4.184 for the words “Article 38” there shall be substituted the words “paragraph 58 of Schedule B1 to the Order”.

Amendments to Rule 4.194

47

In Rule 4.194(1) after “liquidation committee” there shall be inserted “(or if there is no such committee, a meeting of the company’s creditors)” and after “under” insert “Article 140(2) or”.

Amendment to Rule 4. 228

48

In Rule 4.228—

• (a) in paragraph (1)(c) after the words “under Article 361” there shall be inserted the words “or Article 361A”;

• (b) in paragraph (1)(o) for the words “to the official receiver under general regulations” there shall be substituted “under Schedule 4”.

Amendment to Rule 4.233

49

Omit paragraph (5) of Rule 4.233.

Amendment to Rule 4.241

50

In Rule 4.241(3) after “4.132(1) (final meeting),” there shall be inserted “4.132A(2) (rule on reporting),”.

PART 5 — AMENDMENTS TO PART 5 OF THE PRINCIPAL RULES

Amendments to Rule 5.02

51

In Rule 5.02—

• (a) in paragraph (1) after the words “the Order” there shall be inserted “except in relation to voluntary arrangements under Article 237A, in relation to which only Chapters 8, 11, 12 and 13 of this Part shall apply,”;

• (b) for paragraph (2) there shall be substituted—

(2) In this Part, in respect of voluntary arrangements other than voluntary arrangements under Article 237A— (a) Chapter 3 applies in all cases; (b) Chapter 4 applies in cases where an application for an interim order is made; (c) Chapter 5 applies in cases where no application for an interim order is or is to be made; (d) except where otherwise stated, Chapters 6 and 7 apply in all cases; (e) Chapter 9 applies where a bankrupt makes an application under Article 235(2)(a); and (f) Chapter 10 applies where the official receiver makes an application under Article 235(2)(b). (3) In this Part, in respect of voluntary arrangements under Article 237A— (a) Chapter 8 applies in all cases; and (b) Chapter 11 applies where the official receiver makes an application under Article 237D(3). (4) In this Part, Chapters 12 and 13 apply in all cases.

Amendments to Rule 5.08

52

In paragraph (1) of Rule 5.08—

• (a) in sub-paragraph (b) for the word “execution” there shall be substituted “enforcement proceedings”;

• (b) after sub-paragraph (d) the word “and” shall be omitted;

• (c) at the end of sub-paragraph (e) for the full-stop there shall be substituted a semi-colon and after that semi-colon there shall be inserted the word “and”; and

• (d) after sub-paragraph (e) there shall be inserted—

(f) that the debtor has not submitted to the official receiver either the document referred to at Article 237B(1)(a) or the statement referred to at Article 237B(1)(b).

Omission of Rule 5.27

53

Rule 5.27 shall be omitted.

Substitution of Chapter 8 of Part 5

54

For Chapter 8 of Part 5 of the principal Rules there shall be substituted—

(5.34) The Rules in this Chapter apply in relation to an individual debtor who intends to submit a proposal for a voluntary arrangement with his creditors to the official receiver in accordance with the provisions of Article 237B. - [E.R. 5.35] (5.35) In this Chapter— - “voluntary arrangement” means an individual voluntary arrangement under Article 237A; - “proposal” means the document setting out the terms of the voluntary arrangement which the debtor is proposing. - [E.R. 5.36] (5.36) (1) The debtor’s proposal submitted under Article 237B(1) shall— (a) be accompanied by any fee payable to the official receiver for acting as nominee; and (b) contain— (i) a statement that the debtor is eligible to propose a voluntary arrangement; (ii) a short explanation why, in his opinion, a voluntary arrangement is desirable, and give reasons why his creditors may be expected to concur with such an arrangement; and (iii) a statement that the debtor is aware that he commits an offence under Article 236A if, for the purpose of obtaining the approval of his creditors to his proposal, he makes any false representation, or fraudulently does, or omits to do, anything. (2) The proposal shall set out or otherwise deal with— (a) the following matters, so far as within the debtor’s immediate knowledge— (i) his assets, with an estimate of their respective values; (ii) the extent (if any) to which the assets are charged in favour of creditors; and (iii) the extent (if any) to which particular assets are to be excluded from the voluntary arrangement; (b) particulars of any property, other than assets of the debtor himself, which is proposed to be included in the voluntary arrangement, the source of such property and the terms on which it is to be made available for inclusion; (c) the nature and amount of the debtor’s liabilities (so far as within his immediate knowledge), the manner in which they are proposed to be met, modified, postponed or otherwise dealt with by means of the voluntary arrangement and (in particular)— (i) how it is proposed to deal with preferential creditors (defined in Article 232(9)) and creditors who are, or claim to be, secured; (ii) how associates of the debtor (being creditors of his) are proposed to be treated under the voluntary arrangement; and (iii) whether, to the debtor’s knowledge, claims have been made under Article 312 (transactions at an undervalue), Article 313 (preferences), Article 316 (extortionate credit transactions), or whether there are circumstances giving rise to the possibility of such claims, and, where any such circumstances are present, whether, and if so how, it is proposed under the voluntary arrangement to make provision for wholly or partly indemnifying the insolvent estate in respect of such claims; (d) whether any, and if so what, guarantees have been given of the debtor’s debts by other persons, specifying which (if any) of the guarantors are associates of his; (e) the proposed duration of the voluntary arrangement; (f) the proposed dates of distributions to creditors, with estimates of their amounts; (g) how it is proposed to deal with the claims of any person who is bound by the voluntary arrangement by virtue of Article 237D(2)(c); (h) an estimate of the fees and expenses that will be incurred in connection with the approval and implementation of the voluntary arrangement; (j) whether, for the purposes of the voluntary arrangement, any guarantees are to be offered by any persons other than the debtor, and whether (if so) any security is to be given or sought; (k) the manner in which funds held for the purpose of payment to creditors, and not so paid on the termination of the voluntary arrangement, are to be dealt with; (l) the functions which are to be undertaken by the supervisor of the voluntary arrangement; (m) an address of the official receiver to which correspondence with the official receiver is to be sent; (n) the names and addresses of all the debtor’s creditors so far as within his immediate knowledge; and (o) whether the EC Regulation will apply and, if so, whether the proceedings will be main proceedings or territorial proceedings, and the proposal shall be signed and dated by the debtor. (3) The official receiver shall on request supply to the debtor the address referred to in paragraph (2)(m). - [E.R. 5.37] (5.37) (1) Where the official receiver receives a proposal for a voluntary arrangement in accordance with Rule 5.36 he shall, within 28 days of its receipt, serve a notice on the debtor stating that— (a) he agrees to act as nominee in relation to the proposal; (b) he declines to act as nominee in relation to the proposal and specifying reasons for his decision; or (c) on the basis of the information supplied to him he is unable to reach a decision as to whether to act and specifying what further information he requires. (2) Where the debtor, pursuant to a request under paragraph (1)(c), supplies the information requested, the official receiver shall, within 28 days of the receipt of the information, serve a notice on the debtor in accordance with paragraph (1). - [E.R. 5.38] (5.38) (1) As soon as reasonably practicable after the official receiver agrees to act as nominee, he shall send to the creditors and any trustee who is not the official receiver— (a) a copy of the proposal; and (b) a notice inviting creditors to vote to approve or reject the debtor’s proposal and stating that— (i) if a majority in excess of three-quarters in value of creditors who vote approve the proposal, the official receiver will, as soon as reasonably practicable, report to the court that the proposal has been approved; (ii) under Article 237F— (aa) the debtor, a person who was entitled to participate in the arrangements made under Article 237B(2), any trustee who is not the official receiver, or the official receiver, has 28 days from the date the official receiver reports to the court under Article 237C that the proposal has been approved to apply to the court to have the proposal set aside on the grounds set out in Article 237F(1); (bb) a creditor, who was not made aware of the arrangements under Article 237B(2) at the time when they were made, has 28 days from the date on which he becomes aware of the voluntary arrangement, to apply to have the proposal set aside on the grounds set out in Article 237F(1); and (iii) creditors cannot propose modifications to the debtor’s proposal; and (c) for the creditors, a copy of Form 5.6 for their use. - [Form 5.6] (2) The notice shall include a date specified by the official receiver as the final date on which he will accept votes from creditors, being a date not less than 14 days and not more than 28 days from the date of the notice. - [E.R. 5.39] (5.39) (1) All creditors who wish to vote shall give notice in Form 5.6 to the official receiver of their decision whether to accept or reject the debtor’s proposal. Such notification shall be sent to the official receiver at the address specified in the notice. (2) Votes may be signed by a representative of a creditor. (3) Votes from a representative of a creditor shall be accompanied by written authority for that representation signed and dated by the creditor. - [E.R. 5.40] (5.40) (1) Subject to paragraphs (2) and (3) of this Rule and Rule 5.41, any creditor who is sent a notice by the official receiver is entitled to vote for the approval or rejection of the proposal. (2) A creditor’s entitlement to vote is calculated by reference to the amount of the creditor’s debt at the date of the bankruptcy order. (3) A creditor may vote in respect of a debt for an unliquidated amount or any debt whose value is not ascertained, and for the purposes of voting (but not otherwise) his debt shall be valued at £1 unless the official receiver agrees to put a higher value on it. - [E.R. 5.41] (5.41) (1) The official receiver has the power to admit or reject a creditor’s claim for the purpose of his entitlement to vote, and the power is exercisable with respect to the whole or part of the claim. (2) The official receiver’s decision on entitlement to vote is subject to appeal to the court by any creditor or the debtor. (3) Subject to paragraph (4) of this Rule, if on appeal the official receiver’s decision is reversed or varied, or votes are declared invalid, the court may order another vote to be held, or make such order as it thinks just. (4) The court’s power to make an order under paragraph (3) is exercisable only if it considers that the circumstances giving rise to the appeal are such as give rise to unfair prejudice or material irregularity. (5) An application to the court by way of appeal against the official receiver’s decision shall not be made after the end of the period of 28 days beginning with the day on which the report required by Article 237C is made to the court. (6) The official receiver is not personally liable for any costs incurred by any person in respect of an appeal under this Rule. - [E.R. 5.42] (5.42) (1) A proposal is approved by the creditors if a majority in excess of three-quarters in value of the creditors who vote approve the proposal. (2) In the following cases there is to be left out of account a creditor’s vote in respect of any claim or part of a claim— (a) where the claim or part of the claim is secured; (b) where the claim is in respect of a debt wholly or partly on, or secured by, a current bill of exchange or promissory note, unless the creditor is willing— (i) to treat the liability to him on the bill or note of every person who is liable on it antecedently to the debtor, 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 (ii) to estimate the value of the security and (for the purpose of entitlement to vote, but not of any distribution under the arrangement) to deduct it from his claim. (3) A proposal is not approved if those voting against it include more than half in value of the creditors, counting in the latter only those— (a) who gave notice to the official receiver in accordance with Rule 5.39; (b) whose votes are not to be left out of account under paragraph (2); and (c) who are not, to the best of the official receiver’s belief, associates of the debtor. (4) It is for the official receiver to decide whether, under this Rule a person is an associate of the debtor for the purposes of paragraph (3)(c) and in relation to this he is entitled to rely on the information provided by the debtor’s statement of affairs or otherwise in accordance with this Part. - [E.R 5.43] (5.43) The official receiver shall, in his report to court for the purposes of Article 237C, include a statement whether, in his opinion— (a) the EC Regulation applies to the voluntary arrangement; and (b) if so, whether the proceedings are main proceedings or territorial proceedings. - [E.R. 5.44] (5.44) (1) Where the official receiver is appointed to act as supervisor of a voluntary arrangement, he shall, as soon as reasonably practicable, give written notice of his appointment to the Department, and all creditors of whom he is aware, and the trustee (if any) who is not the official receiver. (2) If the official receiver vacates office as supervisor he shall give written notice of that fact to the Department. - [E.R. 5.45] (5.45) (1) This Rule applies where the court makes an order of revocation under Article 237F. (2) Where the person who applied for the order is— (a) the debtor, he shall serve a sealed copy of the order on the supervisor and any trustee of his estate who is not the official receiver; (b) the supervisor, he shall serve a sealed copy of the order on the debtor, and any trustee who is not the official receiver; (c) a trustee who is not the official receiver, he shall serve a sealed copy of the order on the debtor and the supervisor; and (d) a creditor, he shall serve a sealed copy of the order on the debtor, the supervisor and any trustee who is not the official receiver. (3) The supervisor shall, as soon as reasonably practicable after receiving a copy of the order, give notice of it, to all persons who were sent a copy of the debtor’s proposal under Rule 5.38 and all other persons who are affected by the order. (4) The person on whose application the order was made shall, within 7 days after the making of the order, give written notice of it to the Department. - [E.R. 5.46] (5.46) (1) The supervisor shall keep accounts and records of his acts and dealings in and in connection with the voluntary arrangement, including in particular records of all receipts and payments of money. (2) Subject to paragraph (3) the supervisor shall, not less often than once in every 12 months beginning with the date of his appointment— (a) prepare a report on the progress of the voluntary arrangement, including a summary of receipts and payments; and (b) send copies of it to— (i) the debtor; and (ii) all of the debtor’s creditors of whom he is aware, (3) If in any period of 12 months the supervisor has made no payments and had no receipts, he shall at the end of that period send a statement to that effect to those specified in paragraph (2)(b). (4) A report provided under paragraph (2) shall relate to a period beginning with the date of the supervisor’s appointment or (as the case may be) the day following the end of the last period for which a report was prepared under this Rule; and copies of the report shall be sent, as required by paragraph (2), within the 2 months following the end of the period to which the report relates. - [E.R. 5.47] (5.47) The fees, costs and expenses in respect of the performance by the official receiver of his functions in relation to the bankruptcy and those of any trustee who is not the official receiver (including those in connection with the employment of agents) shall be a first charge on any sums realised under the terms of the voluntary arrangement, and those of the official receiver in relation to the voluntary arrangement, shall be a second charge. - [E.R. 5.48] (5.48) The supervisor may employ agents in connection with the realisation of any assets subject to the terms of the voluntary arrangement. - [E.R. 5.49] (5.49) (1) Not more than 28 days after the final completion or termination of the voluntary arrangement, the supervisor shall send to all creditors of the debtor who are bound by the voluntary arrangement, and to the debtor, a notice that the voluntary arrangement has been fully implemented, (or as the case may be) terminated. (2) With the notice there shall be sent to each of those persons a copy of a report by the supervisor summarising all receipts and payments made by him in pursuance of the voluntary arrangement, and explaining any difference in the actual implementation of it compared with the proposal as approved by the creditors. (3) The supervisor shall, within the 28 days mentioned in paragraph (1), send to the Department a copy of the notice under paragraph (1), together with a copy of the report under paragraph (2), and he shall not vacate office until after such copies have been sent. (4) The court may, on application by the supervisor, extend the period of 28 days under paragraphs (1) and (3). - [E.R. 5.50] (5.50) The following Rules apply where a bankrupt applies for an annulment of a bankruptcy order under Article 235(2)(a). - [E.R. 5.51] (5.51) (1) An application to the court to annul a bankruptcy order under Article 235(2)(a) shall specify the Article under which it is made. (2) The application shall be supported by an affidavit stating— (a) that the voluntary arrangement has been approved at a meeting of creditors; (b) the date of the approval by the creditors; and (c) that the 28 day period in Article 236(3)(a) for applications to be made under Article 236(1) has expired and no applications or appeal remain to be disposed of. (3) The application and supporting affidavit shall be filed in court; and the court shall give to the bankrupt notice of the venue fixed for the hearing. (4) The bankrupt shall give notice of the venue, accompanied by copies of the application and affidavit to the official receiver, any trustee who is not the official receiver, and the supervisor of the voluntary arrangement not less than 7 days before the hearing date. (5) The official receiver, the supervisor of the voluntary arrangement and any trustee who is not the official receiver may attend the hearing or be represented and call to the attention of the court any matters which seem to him to be relevant. (6) Where the court annuls a bankruptcy order, it shall send sealed copies of the order of annulment in Form 5.7 to the bankrupt, the official receiver, the supervisor of the voluntary arrangement and any trustee who is not the official receiver. The copy sent to the bankrupt shall be accompanied by the certificate required by section 3(4) of the Registration of Deeds Act (Northern Ireland) 1970[^f00008], as applied by section 3B(3) of that Act, signed by the Master. - [Form 5.7] - [E.R. 5.52] (5.52) (1) Where the official receiver has notified creditors of the debtor’s bankruptcy, and the bankruptcy order is annulled, he shall, as soon as reasonably practicable, notify them of the annulment. (2) Expenses incurred by the official receiver in giving notice under this Rule are a charge in his favour on the property of the former bankrupt, whether or not actually in his hands. (3) Where any property is in the hands of a trustee or any person other than the former bankrupt himself, the official receiver’s charge is valid subject only to any costs that may be incurred by the trustee or that other person in effecting realisation of the property for the purpose of satisfying the charge. - [E.R. 5.53] (5.53) The following Rules apply where the official receiver applies for an annulment of a bankruptcy order under Article 235(2)(b). - [E.R. 5.54] (5.54) (1) An application to the court to annul a bankruptcy order under Article 235(2)(b) shall specify the Article under which it is made. (2) An application under Article 235(2)(b) shall not be made before the expiry of 14 days from the date that the time period in Article 236(3)(a) for applications under Article 236(1) has expired. (3) The application shall be supported by a report stating the grounds on which it is made. It shall also state that— (a) the time period for application in paragraph (2) of this Rule has expired; and (b) the official receiver is not aware that any application or appeal remains to be disposed of. (4) The application and the report shall be filed in court and the court shall give to the official receiver notice of the venue fixed for the hearing. (5) The official receiver shall give notice of the venue, accompanied by copies of the application and the report to the bankrupt not less than 7 days before the hearing date. (6) Where the court annuls a bankruptcy order, it shall send sealed copies of the order of annulment in Form 5.7 to the official receiver, any trustee who is not the official receiver, the supervisor of the voluntary arrangement and the bankrupt. The copy sent to the bankrupt shall be accompanied by the certificate required by section 3(4) of the Registration of Deeds Act (Northern Ireland) 1970, as applied by section 3B(3) of that Act, signed by the Master. - [Form 5.7] - [E.R. 5.55] (5.55) (1) Where the bankruptcy order is annulled, the official receiver shall notify all creditors of whom he is aware of the annulment. (2) Expenses incurred by the official receiver in giving notice under this Rule are a charge in his favour on the property of the former bankrupt, whether or not actually in his hands. (3) Where any property is in the hands of a trustee or any person other than the former bankrupt himself, the official receiver’s charge is valid subject only to any costs that may be incurred by the trustee or that other person in effecting realisation of the property for the purpose of satisfying the charge. - [E.R. 5.56] (5.56) The following Rules apply where the official receiver applies for an annulment of a bankruptcy order under Article 237D(3). - [E.R. 5.57] (5.57) (1) An application to the court to annul a bankruptcy order under Article 237D(3) shall specify the Article under which it is made. (2) An application under Article 237D(3) shall be made within 21 days of the expiry of the relevant period set out in Article 237D(4). (3) The application shall be supported by a report stating the grounds on which it is made and a statement by the official receiver that he is not aware that any application or appeal under Article 237F remains to be disposed of. (4) The report shall be accompanied by a copy of the proposal for the voluntary arrangement and a copy of the report under Article 237C. (5) The application, together with the report and the documents in support, shall be filed in court and the court shall give to the official receiver notice of the venue fixed for the hearing. (6) The official receiver shall give notice of the venue, accompanied by copies of the application and the report, to the bankrupt not less than 7 days before the hearing date. (7) Where the court annuls a bankruptcy order, it shall send sealed copies of the order of annulment in Form 5.8 to the official receiver and the bankrupt. The copy sent to the bankrupt shall be accompanied by the certificate required by section 3(4) of the Registration of Deeds Act (Northern Ireland) 1970, as applied by section 3B(3) of that Act, signed by the Master. - [Form 5.8] - [E.R. 5.58] (5.58) (1) Where the official receiver has notified creditors of the debtor’s bankruptcy, and the bankruptcy order is annulled, he shall, as soon as reasonably practicable, notify them of the annulment. (2) Expenses incurred by the official receiver in giving notice under this Rule are a charge in his favour on the property of the former bankrupt, whether or not actually in his hands. (3) Where any property is in the hands of a trustee or any person other than the former bankrupt himself, the official receiver’s charge is valid subject only to any costs that may be incurred by the trustee or that other person in effecting realisation of the property for the purpose of satisfying the charge. - [E.R. 5.59] (5.59) (1) In an order under Article 235(2)(a), 235(2)(b) or 237D(3) the court shall include provision permitting vacation of the registration of the bankruptcy petition and of the bankruptcy order in the Registry of Deeds and, if notice of the presentation of the petition or of the bankruptcy order has been given to the Registrar of Titles, permitting the cancellation of any entry in the register of the said notice or of any bankruptcy inhibition against the title of the bankrupt as the registered owner of land. (2) The court shall as soon as reasonably practicable give notice of the making of the order to— (a) the Department; (b) the Enforcement of Judgments Office; and (c) where the bankruptcy order has been made against a solicitor, to the Law Society of Northern Ireland. (3) The former bankrupt may, in writing, within 28 days of the date of the order, require the Department to give notice of the making of the order— (a) in the Gazette; (b) in any newspaper in which the bankruptcy order was advertised; or (c) in both. (4) Where the former bankrupt has died, or is a person incapable of managing his affairs (within the meaning of Chapter 7 in Part 7), the reference to him in paragraph (3) of this Rule is to be read as referring to his personal representative or, as the case may be, a person appointed by the court to represent or act for him. - [E.R. 5.60] (5.60) (1) Where a bankruptcy order is annulled under Article 235(2)(a), 235(2)(b) or 237D(3), this does not of itself release the trustee from any duty or obligation, imposed on him by or under the Order or the Rules, to account for all his transactions in connection with the former bankrupt’s estate. (2) The trustee shall submit a copy of his final account to the Department as soon as reasonably practicable after the court’s order annulling the bankruptcy order; and he shall file a copy of the final account in court. (3) The final account must include a summary of the trustee’s receipts and payments in the administration, and contain a statement to the effect that he has reconciled his account with that held by the Department in respect of the bankruptcy. (4) The trustee is released from such time as the court may determine, having regard to whether paragraph (2) of this Rule has been complied with. - [E.R. 5.61] (5.61) (1) Where a member State liquidator proposes to apply to the court for conversion under Article 37 of the EC Regulation (conversion of earlier proceedings) of a voluntary arrangement into a bankruptcy, an affidavit complying with Rule 5.62 must be prepared and sworn, and filed in court in support of the application. (2) The application and the affidavit required under this Rule shall be served upon— (a) the debtor; and (b) the supervisor. - [E.R. 5.62] (5.62) (1) The affidavit shall state— (a) that the main proceedings have been opened in relation to the debtor in a member State other than the United Kingdom; (b) the deponent’s belief that the conversion of the voluntary arrangement into a bankruptcy would prove to be in the interests of the creditors in the main proceedings; and (c) all other matters that, in the opinion of the member State liquidator, would assist the court— (i) in deciding whether to make an order under Rule 5.63; and (ii) if the court were to do so, in considering the need for any consequential provision that would be necessary or desirable. (2) An affidavit under this Rule shall be sworn by, or on behalf of, the member State liquidator. - [E.R. 5.63] (5.63) (1) On hearing an application for conversion of a voluntary arrangement into a bankruptcy, the court may make such order as it thinks fit. (2) If the court makes an order for conversion of a voluntary arrangement into a bankruptcy under paragraph (1), the order may contain all such consequential provisions as the court deems necessary or desirable. (3) Where the court makes an order for conversion of a voluntary arrangement into a bankruptcy under paragraph (1), 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. - [E.R. 5.64] (5.64) (1) This Rule applies where a member State liquidator has been appointed in relation to the debtor. (2) Where the supervisor is obliged to give notice to, or provide a copy of a document (including an order of the court) to, the court or the official receiver, the supervisor shall give notice or provide copies, as appropriate, to the member State liquidator. - [E.R. 5.65]

PART 6 — AMENDMENTS TO PART 6 OF THE PRINCIPAL RULES

Amendment to Rule 6.006

55

In paragraph (2) of Rule 6.06 the words “or Article 238(1)(d) (by Law Society of Northern Ireland as attorney of a solicitor),” shall be omitted.

Amendment to Rule 6.009

56

For paragraph (2) there shall be substituted—

(2) No petition shall be filed unless there is produced on presentation of the petition a receipt for the deposit payable or paragraph (2A) applies. (2A) This paragraph applies in any case where the Department has given written notice to the court that the petitioner has made suitable alternative arrangements for the payment of the deposit to the official receiver and such notice has not been revoked in relation to the petitioner in accordance with paragraph (2B). (2B) A notice of the kind referred to in paragraph (2A) may be revoked in relation to the petitioner in whose favour it is given by a further notice in writing to the court stating that the earlier notice is revoked in relation to the petitioner.

Amendment to Rule 6.038

57

In Rule 6.038—

• (a) in paragraph (1) for “2 copies” there shall be substituted “one copy”; and

• (b) for paragraph (8) there shall be substituted—

(8) The copy of the statement of affairs shall be sent by the court to the official receiver.

Revocation of Rules 6.046 to 6.048

58

Rules 6.046 (certificate for summary administration), 6.047 (duty of official receiver in summary administration) and 6.048 (revocation of certificate for summary administration) are revoked.

Amendment to Rule 6.055

59

In paragraph (1) of Rule 6.055 for sub-paragraphs (a) to (e) there shall be substituted—

(a) the interim receiver himself, (b) the official receiver, (c) the debtor, or (d) any creditor.

Amendment to Rule 6.081

60

After Rule 6. 081(5) there shall be inserted—

(6) This Rule shall not apply to voluntary arrangements under Article 237A.

Revocation of Rule 6.093

61

Rule 6.093 is revoked.

Substitution of Rule 6.095

62

For Rule 6.095 there shall be substituted—

(6.095) A form of proof shall be sent to any creditor of the bankrupt by the official receiver or trustee where the creditor so requests. - [E.R. 6.97]

Amendment to Rule 6.096

63

• (1) For Rule 6.096(1) there shall be substituted—

(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, and, if a company, its company registration number; (b) the total amount of his claim (including any Value Added Tax) as at the date of the bankruptcy order; (c) whether or not that amount includes outstanding uncapitalised interest; (d) particulars of how and when the debt was incurred by the debtor; (e) particulars of any security held, the date when it was given and the value which the creditor puts upon it; (f) details of any reservation of title in respect of goods to which the debt refers; and (g) the name, and address and authority of the person signing the proof (if other than the creditor himself).

• (2) In Rule 6.096(3) after “the trustee” there shall be inserted “the official receiver, acting as receiver and manager”.

Amendment to Rule 6.097

64

In Rule 6.097(1) after “the trustee” there shall be inserted “or the official receiver, acting as receiver and manager”.

Amendment to Rule 6.108

65

In paragraph (2) for the words “middle market rate at the Bank of England” there shall be substituted “middle exchange rate on the London Foreign Exchange Market at the close of business”.

Amendment to Rule 6.118

66

In Rule 6.118(1) “(2),” shall be omitted.

Amendment to Rule 6.133

67

In paragraph (1) of Rule 6.133 for the words “who have proved their debts” there shall be substituted “of which he is aware”.

Amendment to Rule 6.134

68

In Rule 6.134—

• (a) in paragraph (1) of Rule 6.134 for the words “who have proved their debts” there shall be substituted “of which he is aware” and

• (b) in paragraph (4) of Rule 6.134 for the words “official receiver” there shall be substituted “Department”.

Insertion of new Rule 6.134A

69

After Rule 6.134 there shall be inserted—

(6.134A) (1) The court may, on the trustee or official receiver’s application, relieve him of any duty imposed on him by Rules 6.133 or 6.134, or authorise him to carry out the duty in a way other than there required. (2) In considering whether to act as above, 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. - [E.R. 6.137A]

Amendment to Rule 6.135

70

For paragraph (6) there shall be substituted—

(6) Where the trustee is not the official receiver and his remuneration is not fixed under paragraphs (2) to (5) of this Rule, the trustee shall be entitled to remuneration calculated in accordance with Rule 6.135A.

Insertion of new Rule 6.135A

71

After Rule 6.135 there shall be inserted—

(6.135A) (1) This Rule applies where the trustee is not the official receiver and his remuneration is not fixed in accordance with Rule 6.135. (2) Subject to paragraph (3), the trustee shall be entitled by way of remuneration for his services as such, to such sum as is arrived at by— (a) first applying the realisation scale set out in Schedule 4 to the monies received by him from the realisation of the assets of the bankrupt (including any Value Added Tax thereon but after deducting any sums paid to secured creditors in respect of their securities and any sums spent out of money received in carrying on the business of the bankrupt); and (b) then by adding to the sum arrived at under sub-paragraph (a) such sum as is arrived at by applying the distribution scale set out in Schedule 4 to the value of assets distributed to creditors of the bankrupt (including sums paid in respect of preferential debts). (3) That part of the trustee’s remuneration calculated by reference to the realisation scale shall not exceed such sum as is arrived at by applying the realisation scale to such part of the bankrupt’s assets as are required to pay the items referred to in paragraph (4). (4) The items referred to in paragraph (3) are— (a) the bankruptcy debts (including any interest payable by virtue of Article 300(4)) to the extent required to be paid by these Rules (ignoring those debts paid otherwise than out of the proceeds of the realisation of the bankrupt’s assets or which have been secured to the satisfaction of the court); (b) the expenses of the bankruptcy other than— (i) fees or the remuneration of the official receiver; and (ii) any sums spent out of money received in carrying on the business of the bankrupt; (c) fees payable by virtue of any order made under Article 361; and (d) the remuneration of the official receiver. [E.R. 6.138A]

Amendment to Rule 6.136

72

For paragraph (1) there shall be substituted—

(1) Where the trustee (not being the official receiver) realises assets on behalf of a secured creditor, the trustee is entitled to such sum by way of remuneration as is arrived at by applying the realisation scale set out in Schedule 4 to the monies received by him in respect of the assets realised (including any Value Added Tax thereon).

Amendment to Rule 6.143

73

Omit Rule 6. 143(2).

Amendment to Rule 6.153

74

In paragraph (4) of Rule 6.153 after the word “bankrupt” there shall be inserted “or a disqualified director,” and for the words “composition or arrangement with his creditors” there shall be substituted “bankruptcy restrictions order”.

Amendment to Rule 6.155

75

In paragraph (1)(a) of Rule 6.155 omit the words “or compounds or arranges with his creditors”.

Insertion of new Chapter 16A of Part 6 of the principal Rules

76

After Chapter 16 of Part 6 of the principal Rules there shall be inserted—

(6.190A) (1) An income payments agreement can only be entered into prior to the discharge of the bankrupt. (2) Where an income payments agreement is to be entered into between the official receiver or trustee and the bankrupt under Article 283A(1), the official receiver or trustee shall provide an income payments agreement to the bankrupt for his approval. (3) Within 14 days or such longer period as may be specified by the official receiver or trustee (whichever is appropriate) from the date on which the income payments agreement was sent, the bankrupt shall— (a) if he decides to approve the draft income payments agreement, sign the agreement and return it to the official receiver or trustee (whichever is appropriate); or (b) if he decides not to approve the agreement, notify the official receiver or trustee (whichever is appropriate) in writing of his decision. - [E.R. 6.193A] (6.190B) (1) On receipt by the official receiver or trustee of the signed income payments agreement, the official receiver or trustee shall sign and date it. (2) When the official receiver or the trustee signs and dates the income payments agreement, it shall come into force. (3) The official receiver or trustee shall send a copy of the signed income payments agreement to the bankrupt. (4) Where the agreement provides for payments by a third person to the official receiver or trustee who is not the official receiver in accordance with Article 283A(1)(b), a notice of the agreement shall be sent by the official receiver or trustee to that person. (5) The notice shall contain— (a) the full name and address of the bankrupt; (b) a statement that an income payments agreement has been made, the date of it, and that it provides for the payment by the third person of sums owed to the bankrupt (or a part thereof) to be paid to the official receiver or trustee; (c) the full name and address of the third person; (d) a statement of the amount of money to be paid to the official receiver or trustee from the bankrupt’s income, the period over which the payments are to be made, and the intervals at which the sums are to be paid; and (e) the full name and address of the official receiver or trustee and the address or details of where the sums are to be paid. (6) When making any payment to the official receiver or the trustee a person who has received notice of an income payments agreement with reference to income otherwise payable by him to the bankrupt may deduct the appropriate fee towards the clerical and administrative costs of compliance with the income payments agreement. (7) He shall give to the bankrupt a written statement of any amount deducted by him under paragraph (6). - [E.R. 6.193B] (6.190C) (1) Where an application is made to court for variation of an income payments agreement, the application shall be accompanied by a copy of the agreement. (2) Where the bankrupt applies to the court for variation of an income payments agreement under Article 283A(6)(b), he shall send a copy of the application and notice of the venue to the official receiver or trustee (whichever is appropriate) at least 28 days before the hearing date. (3) When the official receiver or trustee applies to the court for variation of an income payments agreement under Article 283A(6)(b), he shall send a copy of the application and notice of the venue to the bankrupt at least 28 days before the hearing date. (4) The court may order in Form 6.84 the variation of an income payments agreement under Article 283A. - [Form 6.84] (5) Where the court orders an income payments agreement under Article 283A(1)(a) to be varied, so as to take the form of an agreement under Article 283A(1)(b) as an agreement providing that a third person is to make payments to the trustee or the official receiver, the official receiver or trustee shall send a notice in accordance with Rule 6.190B(4). (6) When making any payment to the official receiver or the trustee a person who has received notice of an income payments agreement with reference to income otherwise payable by him to the bankrupt may deduct the appropriate fee towards the clerical and administrative costs of compliance with the income payments agreement. (7) He shall give to the bankrupt a written statement of any amount deducted by him under paragraph (6). - [E.R. 6.193C]

Amendment to Chapter 20 of Part 6 of the principal Rules

77

After the heading “Chapter 20” in Part 6 of the principal Rules there shall be inserted—

(6.199A) In this Chapter a reference to a bankrupt includes a reference to a person in respect of whom a bankruptcy restrictions order is in force. - [E.R. 6.202A]

Amendment to Rule 6.202

78

In Rule 6.202(2)(a) after the words “income payments order” there shall be inserted “or an income payments agreement”.

Amendment to Rule 6.203

79

In Rule 6.203 after paragraph (5) there shall be inserted—

(6) In this Chapter, where the applicant is not the bankrupt all notices, documents and affidavits required to be given, sent or delivered to another party by the applicant shall also be given, sent or delivered to the bankrupt.

Revocation of Rule 6.210

80

Rule 6.210 is revoked.

Amendment to Rule 6.211

81

In Rule 6.211—

• (a) in paragraph (1) the words “235 or” shall be omitted;

• (b) in paragraph (3) after “may” there shall be inserted “within 28 days of the order”; and

• (c) in paragraph (4) there shall be omitted the words from “The Department shall notify” to “has been paid.”.

Amendment to Rule 6.212

82

In Rule 6.212(1) the words “235 or” shall be omitted.

Insertion of new Chapter 21A of Part 6 of the principal Rules

83

After Chapter 21 of Part 6 of the principal Rules there shall be inserted—