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The Insolvency (England and Wales) Rules 2016

Type Statutory-Instrument

Publication 2016-10-18

Last updated 2025-11-19

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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An order under section 256(5) extending the period for which an interim order has effect to enable creditors to consider the proposal must contain—

(a) identification details for the proceedings;

(b) the section number of the Act under which it is made;

(d) a statement that for the purpose of enabling the creditors to consider the proposal, the period for which the interim order has effect is extended to a specified date;

(e) a statement that the nominee will be inviting the creditors to consider the proposal and details of the decision procedure the nominee intends to use;

(f) where the debtor is an undischarged bankrupt and the nominee is not the official receiver, an order that the nominee deliver, as soon as reasonably practicable, a copy of the order to the official receiver; and

(g) the date of the order.

Replacement of the nominee (section 256(3))

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(1) A debtor who intends to apply under section 256(3)(a) or (b) for the nominee to be replaced must deliver a notice to the nominee that such an application is intended to be made at least five business days before filing the application with the court.

(2) A nominee who intends to apply under section 256(3)(b) to be replaced must deliver a notice to the debtor that such an application is intended to be made at least five business days before filing the application with the court.

(3) The court must not appoint a replacement nominee unless the replacement nominee has filed with the court a statement confirming—

(a) that person is qualified to act as an insolvency practitioner (or is an authorised person) in relation to the debtor; and

(b) that person's consent to act.

Consideration of the nominee's report

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(1) A person to whom a notice was (or should have been) delivered under rule 8.8(4) may appear or be represented at the court's hearing to consider the nominee's report.

(2) Rule 8.13 applies to any order made by the court at the hearing.

CHAPTER 4 — Cases where no interim order is to be obtained

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Nominee's report (section 256A)

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(1) The nominee's report under section 256A(3) must explain whether or not the nominee considers that the proposal has a reasonable prospect of being approved and implemented and whether or not creditors should be invited to consider the proposal.

(1A) The nominee must examine whether there is jurisdiction to open the proceedings and must specify in the nominee’s report whether the proceedings will be COMI proceedings, establishment proceedings or proceedings to which the EU Regulation as it has effect in the law of the United Kingdom does not apply with the reasons for so stating.

(2) The report must contain sufficient information to enable a person to identify (in accordance with rule 8.20) the appropriate court or hearing centre in which to file an application relating to the proposal or the IVA.

(3) The nominee must also deliver a copy of the report to the debtor.

(4) Where the nominee gives an opinion in the affirmative on the matters referred to in section 256A(3)(a) and (b), the copy of the report delivered by the nominee to each of the creditors must be accompanied by—

(a) a statement that an application for an interim order under section 253 is not being made;

(b) a copy of the proposal (as amended, if applicable, under rule 8.2(2));

(d) a copy of the notice of the nominee's consent to act.

(5) In such a case the nominee must also deliver those documents within 14 days (or such longer period as the court may allow) of receipt of the document and statement referred to in section 256A(2) to—

(a) the official receiver and any trustee, where the debtor is an undischarged bankrupt; and

(b) any person who has presented a bankruptcy petition against the debtor.

(6) Where the nominee gives an opinion in the negative on the matters referred to in section 256A(3)(a) and (b) the nominee must within 14 days (or such longer period as the court may allow) of receipt of the document and statement referred to in section 256A(2) —

(a) deliver a copy of the report to the creditors; and

(b) give the reasons for that opinion to the debtor.

Court or hearing centre to which applications must be made where no interim order

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(1) This rule applies where the nominee has made a report under section 256A(3).

(2) Any application relating to a proposal or an IVA must be made—

(a) to the court or hearing centre, if any, which has the conduct of the bankruptcy, where the debtor is an undischarged bankrupt; or

(b) to the court or hearing centre determined in accordance with rule 10.48.

(3) The application must contain sufficient information to establish that it is made to the appropriate court or hearing centre.

(4) The applicant must file with the court (in addition to the documents in support of the application) such other documents required by this Part as the applicant considers may assist the court in determining the application.

Replacement of the nominee (section 256A(4))

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(1) A debtor who intends to apply under section 256A(4)(a) or (b) for the nominee to be replaced must deliver a notice of the intention to make the application to the nominee at least five business days before filing the application with the court.

(2) A nominee who intends to apply under section 256A(4)(b) to be replaced must deliver a notice of the intention to make such an application to the debtor at least five business days before filing the application with the court.

(3) The court must not appoint a replacement nominee unless the replacement nominee has filed with the court a statement confirming—

(a) that person is qualified to act as an insolvency practitioner (or is an authorised person) in relation to the debtor; and

(b) that person's consent to act.

CHAPTER 5 — Consideration of the proposal by the creditors

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Consideration of the proposal

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(1) This rule applies where the nominee is required to seek a decision from the debtor's creditors as to whether they approve the debtor's proposal.

(2) The nominee must deliver to each creditor a notice which complies with rule 15.8 so far as is relevant.

(3) The notice must also contain—

(a) identification details for the proceedings;

(b) where an interim order has not been obtained, details of the court or hearing centre to which an application relating to the proposal or the IVA must be made under rule 8.20(2);

(c) where an interim order is in force, details of the court or hearing centre in which the nominee's report on the debtor's proposal has been filed under section 256 ;

(d) a statement as to how a person entitled to vote for the proposal may propose a modification to it, and how the nominee will deal with such a proposal for a modification.

(4) The notice may contain or be accompanied by a notice that the results of the consideration of the proposal will be made available for viewing and downloading on a website and that no other notice will be delivered to the creditors to whom the notice under this rule was sent.

(5) Where the results of the consideration of the proposal are to be made available for viewing and downloading on a website the nominee must comply with the requirements for use of a website to deliver a document set out in rule 1.49(2)(a) to (c), (3) and (4) with any necessary adaptations and rule 1.49(5)(a) applies to determine the time of delivery of the document.

(6) The notice must be accompanied by the following (unless they have been delivered already under rule 8.19)—

(a) a copy of the proposal;

(b) a copy of the statement of affairs, or a summary including a list of creditors with the amounts of their debts; and

(7) The decision date must be not less than 14 days from the date of delivery of the notice and not more than 28 days from the date on which—

(a) the nominee received the document and statement of affairs referred to in section 256A(2) in a case where an interim order has not been obtained; or

(b) the nominee's report was considered by the court in a case where an interim order is in force.

Proposals for an alternative supervisor

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(1) If in response to a notice of a decision procedure to consider the proposal other than at a meeting, a creditor proposes that a person other than the nominee be appointed as supervisor, that person's consent to act and confirmation of being qualified to act as an insolvency practitioner (or being an authorised person) in relation to the debtor must be delivered to the nominee by the creditor.

(2) If at a creditors' meeting to consider the proposal a resolution is moved for the appointment of a person other than the nominee to be supervisor, that person must produce to the chair at or before the meeting—

(a) confirmation of being qualified to act as an insolvency practitioner (or being an authorised person) in relation to the debtor; and

(b) written consent to act (unless the person is present at the meeting and signifies consent).

Report of the creditors' consideration of a proposal

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(1) A report of the creditors' consideration of a proposal must be prepared by the convener or, if the proposal is considered at a meeting, by the chair.

(2) The report must—

(a) state whether the proposal was approved or rejected and, if approved, with what (if any) modifications;

(b) list the creditors who voted or attended or who were represented at the meeting or decision procedure (as applicable) used to consider the proposal, setting out (with their respective values) how they voted on each resolution or whether they abstained;

(c) if the proposal was approved, state whether the proceedings are main, territorial or non-EU proceedings and the reasons for so stating; and

(d) include such further information as the nominee or the chair thinks appropriate.

(3) Where an interim order was obtained a copy of the report must be filed with the court, within four business days of the decision date.

(4) The court must endorse the copy of the report with the date of filing.

(5) The nominee must give notice of the result of the consideration to—

(a) everyone who was invited to consider the proposal and to whom notice of the decision procedure was delivered;

(b) any other creditor; and

(6) The notice must be given—

(a) where an interim order was obtained, as soon as reasonably practicable after a copy of the report is filed with the court; or

(b) where an interim order was not obtained, within four business days of the decision date.

CHAPTER 6 — Action following approval of an IVA

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Hand-over of property, etc. to supervisor

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(1) As soon as reasonably practicable after the IVA is approved, the debtor or, where the debtor is an undischarged bankrupt, the official receiver or any trustee must do all that is required to put the supervisor in possession of the assets included in the IVA.

(2) Where the debtor is an undischarged bankrupt, the supervisor must—

(a) before taking possession of the assets included in the IVA, deliver to the official receiver or any trustee an undertaking to discharge the balance due to the official receiver or trustee out of the first realisation of the assets; or

(b) upon taking possession of the assets included in the IVA, discharge such balance.

(3) The balance is any balance due to the official receiver or any trustee—

(a) by way of fees or expenses properly incurred and payable under the Act or these Rules; and

(b) on account of any advances made in respect of the bankrupt's estate, together with interest on such advances at the rate specified in section 17 of the Judgments Act 1838 at the date of the bankruptcy order.

(4) Where the debtor is an undischarged bankrupt, the official receiver and any trustee have a charge on the assets included in the IVA in respect of any sums comprising such balance, subject only to the deduction by the supervisor from realisations of the proper costs and expenses of realisation.

(5) Any sums due to the official receiver take priority over those due to any trustee.

(6) The supervisor must from time to time out of the realisation of assets—

(a) discharge all guarantees properly given by the official receiver or any trustee for the benefit of the bankrupt's estate; and

(b) pay the expenses of the official receiver and any trustee.

Report to the Secretary of State of the approval of an IVA

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(1) After the creditors approve an IVA the nominee, appointed person or the chair must deliver a report containing the required information to the Secretary of State.

(2) The report must be delivered as soon as reasonably practicable, and in any event within 14 days after the report that the creditors have approved the IVA has been filed with the court under rule 8.24(3) or the notice that the creditors have approved the IVA has been sent to the creditors under rule 8.24(5) as the case may be.

(3) The required information is—

(a) identification details for the debtor;

(b) the debtor's gender;

(d) any name by which the debtor was or is known, not being the name in which the debtor has entered into the IVA;

(e) the date on which the IVA was approved by the creditors; and

(f) the name and address of the supervisor.

(4) A person who is appointed to act as a supervisor as a replacement of another person, or who vacates that office must deliver a notice of that fact to the Secretary of State as soon as reasonably practicable.

Revocation or suspension of an IVA (section 262)

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(1) This rule applies where the court makes an order of revocation or suspension under section 262.

(2) The applicant for the order must deliver a sealed copy of it to—

(a) the debtor (if different from the applicant);

(b) the supervisor; and

(c) where the debtor is an undischarged bankrupt, the official receiver and any trustee (in either case, if different from the applicant).

(3) If the order includes a direction by the court under section 262(4)(b) for a matter to be considered further by a decision procedure, the applicant for the order must deliver a notice that the order has been made to the person who is directed to take such action.

(4) The debtor, or the trustee (if the debtor is an undischarged bankrupt) must—

(a) as soon as reasonably practicable deliver a notice that the order has been made to everyone to whom a notice to consider the matter by a decision procedure was delivered or who appears to be affected by the order; and

(b) within five business days of delivery of a copy of the order (or within such longer period as the court may allow), deliver, if applicable, a notice to the court advising that it is intended to make a revised proposal to the creditors, or to invite re-consideration of the original proposal.

(5) The applicant for the order must, within five business days of the making of the order deliver a notice of the order to the Secretary of State.

(6) The applicant for the order must, within five business days of the expiry of any order of suspension, deliver a notice of the expiry to the Secretary of State.

Supervisor's accounts and reports

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(1) The supervisor must keep accounts and records where the IVA authorises or requires the supervisor—

(a) to carry on the business of the debtor or trade on behalf of or in the name of the debtor;

(b) to realise assets of the debtor or, where the debtor is an undischarged bankrupt, belonging to the bankrupt's estate; or

(2) The accounts and records which must be kept are of the supervisor's acts and dealings in, and in connection with, the IVA, including in particular records of all receipts and payments of money.

(3) The supervisor must preserve any such accounts and records which were kept by any other person who has acted as supervisor of the IVA and are in the supervisor's possession.

(4) The supervisor must deliver reports on the progress and prospects for the full implementation of the IVA to—

(a) the debtor; and

(b) the creditors bound by the IVA.

(5) The first report must cover the period of 12 months commencing on the date on which the IVA was approved and a further report must be made for each subsequent period of 12 months.

(6) Each report must be delivered within the period of two months after the end of the 12 month period.

(7) Such a report is not required if an obligation to deliver a report under rule 8.31... arises in the two months after the end of the period.

(8) Where the supervisor is authorised or required to do any of the things mentioned in paragraph (1), the report—

(a) must include or be accompanied by a summary of receipts and payments which paragraph (2) requires to be recorded; or

(b) where there have been no such receipts and payments, must say so.

Production of accounts and records to the Secretary of State

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(1) The Secretary of State may during the IVA or after its full implementation or termination require the supervisor to produce for inspection (either at the supervisor's premises or elsewhere)—

(a) the supervisor's accounts and records in relation to the IVA; and

(b) copies of reports and summaries prepared in compliance with rule 8.28.

(2) The Secretary of State may require any accounts and records produced under this rule to be audited and, if so, the supervisor must provide such further information and assistance as the Secretary of State requires for the purposes of the audit.

Fees and expenses

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The fees and expenses that may be incurred for the purposes of the IVA are—

(a) fees for the nominee's services agreed with the debtor, the official receiver or any trustee;

(b) disbursements made by the nominee before the approval of the IVA; and

(i) are sanctioned by the terms of the IVA, or

(ii) where they are not sanctioned by the terms of the IVA, would be payable, or correspond to those which would be payable, in the debtor's bankruptcy.

Termination or full implementation of the IVA

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(1) Not more than 28 days after the full implementation or termination of the IVA the supervisor must deliver a notice that the IVA has been fully implemented or terminated to the debtor and the creditors bound by the IVA.

(2) The notice must state the date the IVA took effect.

(3) The notice must be accompanied by a copy of a report by the supervisor which—

(a) summarises all receipts and payments in relation to the IVA;

(b) explains any departure from the terms of the IVA as approved by the creditors; and

(4) The supervisor must within the 28 days mentioned above—

(a) deliver a copy of the notice and report to the Secretary of State; and

(b) if the creditors were invited to consider the proposal following a report under section 256(1)(aa), file a copy of the notice and report with the court.

(5) The supervisor must not vacate office until the notice and report have been delivered to the Secretary of State.

CHAPTER 7 — Applications to annul bankruptcy orders under sections 261(2)(a) and (b)

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Application by the bankrupt to annul the bankruptcy order (section 261(2)(a))

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(1) An application by bankrupt to the court under section 261(2)(a) must be supported by a witness statement stating—

(a) that the IVA has been approved by the creditors;

(b) the date of the approval; and

(c) that the 28 day period in section 262(3)(a) for applications to be made under section 262(1) has expired and no applications or appeals remain to be disposed of.

(2) The application and witness statement must be filed with the court and the court must deliver a notice of the venue for the hearing to the bankrupt.

(3) Not less than five business days before the date of the hearing, the bankrupt must deliver a notice of the venue, with a copy of the application and witness statement, to—

(a) the official receiver;

(b) any trustee (if different to the official receiver); and

(4) The official receiver, any such trustee and the supervisor may attend the hearing or be represented and bring to the court's attention any matters which seem to them to be relevant.

Application by the official receiver to annul the bankruptcy order (section 261(2)(b))

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(1) An application by the official receiver to the court under section 261(2)(b) to annul a bankruptcy order must be supported by a report stating—

(a) the grounds on which it is made;

(b) that the time period in paragraph (2) has expired; and

(2) The official receiver must not make such an application before the expiry of the period of 42 days beginning with the day on which—

(a) the nominee filed the report of the creditors' consideration with the court, where the creditors considered the proposal under section 257 following a report to a court under section 256(1)(aa); or

(b) the nominee delivered a notice to the creditors of the result of their consideration, where the creditors considered the proposal under section 257 following a report to the creditors under section 256A(3) .

(3) The application and the report must be filed with the court and the court must deliver a notice of the venue for the hearing to the official receiver.

(4) Not less than five business days before the date of the hearing, the official receiver must deliver a notice of the venue, with a copy of the application and the report, to the bankrupt.

Order annulling bankruptcy

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(1) An order under section 261(2) annulling a bankruptcy order must contain—

(a) identification details the proceedings;

(b) the section number of the Act under which the order is made;

(d) a statement that it appears that an IVA under section 258 has been approved and implemented and the date of approval;

(e) a statement that there has been no application under section 262 for the revocation or suspension of the IVA and that the time period for making such an application has expired;

(f) where the applicant is the official receiver under section 261(2)(b) that the time period in rule 8.33(2) has expired;

(g) the order that the relevant bankruptcy order, identified by its date and the name of the bankrupt as set out in the bankruptcy order, be annulled;

(h) if appropriate, an order that the relevant bankruptcy petition (identified by the date of its presentation) or the relevant bankruptcy application (identified by the date it was made) (as the case may be) be dismissed;

(i) where there is a trustee, an order in respect of the trustee's release, having regard to rule 8.37;

(j) an order that the registration of the bankruptcy petition or bankruptcy application as a pending action at the Land Charges Department of HM Land Registry be vacated (identified by the date of registration and reference number);

(k) an order that the registration of the bankruptcy order on the register of writs and orders affecting land at the Land Charges Department of HM Land Registry be vacated (identified by date of registration and reference number);

(l) the date the order is made;

(m) a notice to the effect that if the former bankrupt requires notice of the order to be gazetted and advertised in the same manner as the bankruptcy order was advertised, the bankrupt must deliver a notice to the official receiver within 28 days; and

(n) a notice to the effect that it is the responsibility of the former bankrupt and in the former bankrupt's interest to ensure that any registration of the petition or bankruptcy application and of the bankruptcy order at the Land Charges Department of HM Land Registry and any entries relating to the petition or bankruptcy application and bankruptcy order in any registered titles at HM Land Registry are cancelled (such a notice giving relevant HM Land Registry contact details and referring to relevant Registry guidance).

(2) The court must deliver a sealed copy of the order to—

(a) the former bankrupt;

(b) the official receiver;

(d) the supervisor.

Notice of order

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(1) An official receiver, who has delivered a notice of the debtor's bankruptcy to the creditors, must, as soon as reasonably practicable, deliver a notice of an annulment under section 261(2) to them.

(2) Expenses incurred by the official receiver in delivering a notice under this rule are a charge in the official receiver's favour on the property of the former bankrupt, whether or not actually in the hands of the former bankrupt.

(3) Where any such property is in the hands of any person other than the former bankrupt, the official receiver's charge is valid subject only to any costs that may be incurred by that person in effecting realisation of the property for the purpose of satisfying the charge.

Advertisement of order

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(1) The former bankrupt may in writing within 28 days of the date of an order for annulment under section 261(2) require the official receiver—

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

(b) to advertise the order in the same manner as the bankruptcy order was advertised.

(2) The official receiver must comply with any such requirement as soon as reasonably practicable.

(3) The notice must state—

(a) the name of the former bankrupt;

(b) the date on which the bankruptcy order was made;

(d) the date of the annulment order; and

(e) the grounds of the annulment.

(4) Where the former bankrupt has died, or is a person lacking capacity to manage the person's own affairs (within the meaning of the Mental Capacity Act 2005 ), the references to the former bankrupt in paragraph (1) are to be read as references to the personal representative of the same or, as the case may be, a person appointed by the court to represent or act for the former bankrupt.

Trustee's final account

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(1) The making of an order under section 261(2) does not of itself release the trustee from any duty or obligation imposed by or under the Act or these Rules to account for all of the trustee's transactions in connection with the former bankrupt's estate.

(2) As soon as reasonably practicable after the making of an order, the trustee must—

(a) deliver a copy of the final account of the trustee to the Secretary of State; and

(b) file a copy of that account with the court.

(3) The final account must include a summary of the trustee's receipts and payments.

(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.

CHAPTER 8 — Time recording information

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Provision of information

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(1) This rule applies where the remuneration of the nominee or the supervisor has been fixed on the basis of time spent.

(2) A person who is acting, or has acted within the previous two years as—

(a) a nominee in relation to a proposal; or

(b) the supervisor in relation to an IVA;

must, within 28 days of receipt of a request from a person mentioned in paragraph (3), deliver free of charge to that person a statement complying with paragraph (4) and (5).

(3) The persons are—

(a) the debtor; and

(b) where the proposal has been approved, a creditor bound by the IVA.

(4) The statement must cover the period which—

(a) in the case of a person who has ceased to act as nominee or supervisor in relation to an IVA, begins with the date of that person's appointment as nominee or supervisor and ends with the date of ceasing to act; and

(b) in any other case, consists of one or more complete periods of six months beginning with the date of appointment and ending most nearly before the date of receiving the request.

(5) The statement must set out—

(i) the total number of hours spent on the matter during that period by the nominee or supervisor, and by any staff,

(ii) for each grade of staff engaged on the matter, the average hourly rate at which work carried out by staff in that grade is charged, and

(iii) the number of hours spent on the matter by each grade of staff during that period.

PART 9 — DEBT RELIEF ORDERS

CHAPTER 1 — Interpretation

[Notes: (1) a debt relief order under Part 7A of the Act may be made in respect of “qualifying debts” (as defined in section 251A(2)); these do not include “excluded debts” which are prescribed by rule 9.2 for the purposes of section 251A(4).

(2) “approved intermediaries” and “competent authority” are defined in section 251U of the Act for purposes of Part 7A of the Act.]

Debtor's family

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In this Part the expression “debtor's family” has the same meaning in relation to a debtor as it has in section 385(1) in relation to a bankrupt.

Excluded debts

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(1) For the purposes of Part 7A of the Act debts of the following descriptions are prescribed under section 251A(4) as “excluded debts”—

(a) any fine imposed for an offence and any obligation (including an obligation to pay a lump sum or to pay costs) arising under an order made in family proceedings or any obligation arising under a maintenance assessment or maintenance calculation made under the Child Support Act 1991 ;

(b) any debt or liability to which a debtor is or may become subject in respect of any sum paid or payable to the debtor as a student by way of a loan and which the debtor receives whether before or after the debt relief order is made;

(c) any obligation arising under a confiscation order made under section 1 of the Drug Trafficking Offences Act 1986 , section 1 of the Criminal Justice (Scotland) Act 1987 , section 71 of the Criminal Justice Act 1988 , or Parts 2, 3 or 4 of the Proceeds of Crime Act 2002 ;

(d) any debt which consists of a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages by virtue of Part 1 of the Consumer Protection Act 1987 , being in either case damages in respect of the death of or personal injury (including any disease or other impairment of physical or mental condition) to any person; and

(e) any obligation arising from a payment out of the social fund under section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 by way of crisis loan or budgeting loan.

(2) In paragraph (1)(a) “family proceedings” and “fine” have the meanings given by section 281(8) (which applies the Magistrates' Courts Act 1980 and the Matrimonial and Family Proceedings Act 1984) .

(3) In paragraph (1)(b) “loan” means a loan made under—

(a) regulations made under section 22(1) of the Teaching and Higher Education Act 1998 ; or

(b) the Education (Student Loans) Act 1990, or that Act as it continues in force by virtue of any savings made, in connection with its repeal by the Teaching and Higher Education Act 1998 , by an order made under section 46(4) of that Act; ...

and includes any interest on the loan and any penalties or charges incurred in connection with it.

CHAPTER 2 — Application for a debt relief order

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Application for a debt relief order: information required in the application

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(1) An application for a debt relief order under section 251A must state the matters set out in paragraphs (2) to (9) (which are prescribed for the purposes of section 251B(2)(c)) as they are at the date of the application as well as the matters referred to in section 251B(2)(a) (list of the debtor's debts at the date of the application) and 251B(2)(b) (details of any security held in respect of those debts).

(2) The application must identify the debtor and state—

(a) the debtor's occupation (if any);

(b) the debtor's gender;

(d) the debtor's places of residence during the three years before the date of the application;

(e) any other name used by the debtor for any purpose;

(f) the name, address and nature of any business carried on by the debtor, including any business carried on by—

(i) a firm or partnership of which the debtor is a member;

(ii) an agent or manager for the debtor or for such firm or partnership;

(g) any other liabilities (including those imposed by an order of the court) to which the debtor is subject;

(h) the address of the creditor to whom each debt is owed;

(i) the total amount of the debtor's monthly income from all sources (see rule 9.7(1));

(j) the sources of that income and the amount from each source;

(k) particulars of the expenditure which the debtor claims is necessary to meet the monthly reasonable domestic needs of the debtor and the debtor's family, including the purpose and the amount of that expenditure;

(l) the total amount available from any source to meet the claimed monthly reasonable domestic needs of the debtor and the debtor's family (see rule 9.7(2)); and

(m) particulars of the debtor's property and its total estimated value (see rules 9.8 and 9.9).

(3) The debtor must also state in the application—

(a) whether or not at the date of the application the debtor —

(i) has given a preference to any person during the period of two years ending with the application date,

(ii) has entered into a transaction with any person at an undervalue during the period of two years ending with the application date,

(iii) is domiciled in England and Wales,

(iv) at any time during the period of three years ending with the application date—

(aa) was resident,

(bb) had a place of residence, or

(cc) carried on business,

in England and Wales,

(v) is an undischarged bankrupt,

(vi) is subject to a debt relief order,

(vii) has been subject to a debt relief order in the six years ending with the application date,

(viii) is subject to an interim order or an IVA under Part 8 of the Act, or

(ix) is subject to a bankruptcy restrictions order or undertaking or debt relief restrictions order or undertaking; and

(b) whether at the date of the application—

(i) a bankruptcy petition has been presented against the debtor,

(ii) a bankruptcy application has been made by the debtor,

(iii) any debt management arrangements (see section 251F) are in force in relation to the debtor, and

(iv) any other legal action has been taken against the debtor in relation to any of the debtor's existing debts.

(4) In the application, the debtor must deduct from each debt all trade and other discounts which are available to the debtor, except any discount for immediate or early settlement.

(5) Where any debts were incurred or are payable in a foreign currency, the amount of those debts must be converted into sterling at a single exchange rate for that currency prevailing on the relevant date.

(6) A creditor who considers that the rate is unreasonable may apply to the court.

(7) If the court finds that the rate is unreasonable it may itself determine the rate.

(8) Where a debt consists of unpaid payments of a periodical nature, the amount of the debt will consist of any amounts due and unpaid up to the application date.

(9) Where at the application date any payment was accruing due, the amount of the debt will be so much as would have fallen due at that date, if accruing from day to day.

(10) A debtor may include a debt of which payment is not yet due at the date of the application if it is for a liquidated sum payable at some certain future time.

(11) In the application, the debtor must also—

(a) consent to the official receiver making checks for the purpose of verifying that the debtor complies with the conditions to which the making of a debt relief order is subject;

(b) state that the debtor is unable to pay the debts;

(d) indicate the date on which the application is completed.

(12) The debtor must deliver to the approved intermediary such information and such documents as will enable the intermediary to substantiate the information in the application, including information about each debt, the amount of the debt and the name and address of the creditor.

Delivery of application

9

(1) An application for a debt relief order must be completed and delivered to the official receiver in electronic form and by electronic means.

(2) The preconditions for delivering a document electronically set out in rule 1.45(2) do not apply to applications for debt relief orders.

(3) In the event of any malfunction or error in the operation of the electronic form or means of delivery, the official receiver must inform the competent authorities and approved intermediaries—

(a) that approved intermediaries may complete and deliver applications in hard copy for a specified period; and

(b) of the postal address to which such applications are to be delivered and of any terms or conditions to which the use of the address is subject.

(4) Such an application completed in hard copy may not be delivered by fax.

Role of approved intermediary

9

(1) The approved intermediary, through whom the application for a debt relief order is to be made, must create an application for a debt relief order in the name of the debtor as soon as reasonably practicable after being asked by the debtor to do so.

(2) The approved intermediary may assist the debtor—

(a) to identify what information is required to complete the application;

(b) based upon the documentation and information supplied by the debtor, to ascertain whether—

(i) the debtor appears to have debts not exceeding the prescribed amount,

(ii) the debtor's surplus income does not exceed the prescribed amount, and

(iii) the value of the debtor's property does not exceed the prescribed amount; and

(3) The approved intermediary must draw the debtor's attention to—

(a) all the conditions to which an application for, and the making of, a debt relief order is subject;

(b) the possible consequences of the debtor making any false representation or omission in the application; and

(c) the fact that verification checks will be made for the purpose of verifying that the debtor complies with the conditions to which the making of a debt relief order is subject and the requirement for the debtor to consent to such checks being made.

(4) The approved intermediary must deliver the application to the official receiver as soon as reasonably practicable after being instructed by the debtor to do so.

CHAPTER 3 — Verifying the application and determining the debtor's income and property

Prescribed verification checks: conditions in paragraphs 1 to 8 of Schedule 4ZA of the Act

9

(1) For the purposes of section 251D(4) and (5) and the conditions in paragraphs 1 to 8 of Schedule 4ZA of the Act, the prescribed verification checks are those searches or enquiries specified in this rule.

(2) For the purpose of verifying a debtor's connection with England and Wales on the application date, verification checks made in, or with, one or more of the following—

(a) the electoral registers for the areas in England and Wales in which the debtor claims to reside or to carry on business or to have resided or carried on business at the date of the application;

(b) the individual insolvency register;

(d) the debt relief restrictions register;

(e) a credit reference agency.

(3) Verification checks made in one or more of the registers specified in paragraph (4), for the purpose of verifying that a debtor—

(a) is not, on the determination date—

(i) an undischarged bankrupt,

(ii) subject to a bankruptcy restrictions order or undertaking,

(iii) subject to a debt relief restrictions order or undertaking,

(iv) subject to an IVA; or

(b) has not been the subject of a debt relief order in the period of six years ending with the determination date.

(4) The registers referred to in paragraph (3) are—

(a) the individual insolvency register;

(b) the bankruptcy restrictions register; and

(5) Verification checks made in, or with, one or more of the sources specified in paragraph (6) for the purpose of verifying—

(a) that the debtor is not subject to an interim order on the determination date;

(b) whether a creditor's bankruptcy petition has been presented against the debtor before the determination date;

(d) whether proceedings in relation to any such bankruptcy application have finally been disposed of before the determination date;

(e) where a creditor's bankruptcy petition has been presented against the debtor before the determination date, the status of the proceedings in relation to the petition and whether the person who presented the petition has consented to the making of the application for a debt relief order.

(6) The sources are—

(a) the individual insolvency register;

(b) county or other court records;

(7) Verification checks made with a credit reference agency, for the purpose of verifying that each of the following does not exceed the prescribed amount—

(a) the amount of the debtor's overall indebtedness;

(b) the amount of the debtor's monthly surplus income; or

Determination of debtor's monthly surplus income

9

(1) For the purposes of this Part, the income of a debtor comprises every payment in the nature of income which is from time to time made to the debtor or to which the debtor from time to time becomes entitled, including any payment in respect of the carrying on of a business or in respect of an office or employment and any payment under a pension scheme.

(2) In determining the monthly surplus income of a debtor, the official receiver must take into account any contribution made by a member of the debtor's family to the amount necessary for the reasonable domestic needs of the debtor and the debtor's family.

Determination of value of the debtor's property (paragraph 8 of Schedule 4ZA)

9

(1) The official receiver in determining the total value of the debtor's property for the purposes of determining whether the condition in paragraph 8 of Schedule 4ZA is met must treat as a debtor's property for the purposes of this Part—

(a) all property belonging to or vested in the debtor on the determination date; and

(b) any property which by virtue of any of the following provisions of this Part is comprised in or is treated as falling within the preceding sub-paragraph.

(2) For the purposes of this Part—

(a) property, in relation to a debtor, includes references to any power exercisable by the debtor over or in relation to property except in so far as the power is exercisable over or in relation to property which is not or is deemed not for the time being to be the property of the debtor and cannot be exercised for the benefit of the debtor;

(b) a power exercisable over or in relation to property is deemed for the purposes of this Part to vest in the person entitled to exercise it at the time of the transaction or event by virtue of which it is exercisable by that person (whether or not it becomes so exercisable at that time);

(c) property belonging to or vested in the debtor so belongs or vests in the debtor subject to the rights of any person other than the debtor (whether as a secured creditor of the debtor or otherwise).

(3) In determining the value of the debtor's property the descriptions of property set out in rule 9.9 must be excluded.

Property to be excluded in determining the value of a debtor's property

9

(1) For the purposes of determining the value of a person's property under rule 9.8, the official receiver must disregard—

(a) a single domestic motor vehicle belonging to or vested in the debtor if—

(i) it has been especially adapted for use by the debtor because of a physical impairment that has a substantial and long-term adverse effect on the debtor's ability to carry out normal day-to-day activities, subject to paragraph (2), or

(ii) the maximum potential realisable value of the vehicle is less than £4,000 (the prescribed amount);

(b) subject to paragraph (3), such tools, books and other items of equipment as are necessary to the debtor for use personally in the debtor's employment, business or vocation;

(c) subject to paragraph (3), such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the debtor and the debtor's family;

(d) property held by the debtor on trust for any other person;

(e) the right of nomination to a vacant ecclesiastical benefice;

(f) a tenancy which is an assured tenancy or an assured agricultural occupancy, within the meaning of Part 1 of the Housing Act 1988 , and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977 ;

(g) a protected tenancy, within the meaning of the Rent Act 1977, in relation to which, by virtue of any provision of Part 9 of that Act, no premium can lawfully be required as a condition of assignment;

(h) a tenancy of a dwelling-house by virtue of which the debtor is, within the meaning of the Rent (Agriculture) Act 1976 , a protected occupier of the dwelling-house, and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977;

(i) a secure tenancy, within the meaning of Part 4 of the Housing Act 1985 , which is not capable of being assigned, except in the cases mentioned in section 91(3) of that Act; ...

(ia) a standard contract within the meaning given by the Renting Homes (Wales) Act 2016 (see section 8 of that Act) and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977;

(ib) a secure contract within the meaning given by the Renting Homes (Wales) Act 2016 (see section 8 of that Act) which is not capable of being assigned except—

(i) in the case mentioned in section 251 of the Renting Homes (Wales) Act 2016 (family property order),

(ii) in accordance with section 92 of the Housing Act 1985 (assignment by way of exchange), or

(iii) in accordance with section 114 of the Renting Homes (Wales) Act 2016 (transfer to potential successor); and

(j) any right of the debtor under an approved pension arrangement (as defined by section 11 of the Welfare Reform and Pensions Act 1999 ).

(2) The amount the official receiver must disregard under paragraph (1)(a)(i) is limited to the value of a reasonable replacement where it appears to the official receiver that the realisable value of the vehicle to be disregarded exceeds the cost of a reasonable replacement for it.

(3) The amount the official receiver must disregard under paragraph (1)(b) or (c) is limited to the value of a reasonable replacement where it appears to the official receiver that the realisable value of the whole or a part of the property to be disregarded exceeds the cost of a reasonable replacement for that property or that part.

(4) A vehicle or other property is a reasonable replacement if it is reasonably adequate for meeting the needs met by the other vehicle or other property.

CHAPTER 4 — Making or refusal of a debt relief order

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Contents of debt relief order

9

A debt relief order must contain—

(a) the debtor's identification details;

(b) the date of, and the reference number allocated to, the debtor's application;

(c) a list of the debtor's qualifying debts as at the application date, specifying the amount owed and the creditor's name, address and reference (if any); and

(d) the date on which the order was made.

Other steps to be taken by official receiver or debtor upon making of the order

9

(1) In addition to delivering a copy of the order to the debtor under section 251E, the official receiver must—

(a) deliver a notice of the making and date of the order to the approved intermediary through whom the debtor's application was made; and

(b) cause an entry to be made in the individual insolvency register in accordance with rule 11.18.

(2) If there are other debt management arrangements or an attachment of earnings order in force in relation to the debtor, the official receiver must deliver a notice of the making of the debt relief order to the court, or the body, as the case may be, responsible for making the debt management arrangements or order.

Prescribed information for creditors on making of debt relief order

9

The official receiver must deliver a notice to each creditor to whom a qualifying debt specified in the order is owed, of—

(a) the making, the date and the reference number of the order;

(b) the effect of the order;

(d) the name, address and telephone number of the official receiver delivering the notice and the address to which any objection under that section may or must be delivered.

Refusal of application for debt relief order

9

If the official receiver refuses an application for a debt relief order, the official receiver must deliver a notice to the debtor stating that the official receiver refused the application, and the reason why it has been refused.

CHAPTER 5 — Objection and revocation

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Meaning of “creditor”

9

In this Chapter, “creditor” means a person specified in a debt relief order as a creditor to whom a qualifying debt is owed.

Creditor's objection to a debt relief order (section 251K)

9

(1) The prescribed period under section 251K(2)(a) for a creditor to object to a debt relief order during the moratorium period is within 30 days of the date on which a notice of the making of the order was delivered to the creditor.

(2) The objection must be made in writing to the official receiver and must contain—

(a) the name and address of the creditor;

(b) the name of the debtor and the reference number of the order;

(d) a statement of which of the prescribed grounds for objection the creditor relies upon;

(e) a statement of the facts on which the creditor relies; and

(f) information and documents in support of the grounds and the facts on which the creditor relies.

(3) The prescribed grounds for objection are that—

(a) there is an error in, or an omission from, something specified in the debt relief order;

(b) a bankruptcy order has been made in relation to the debtor;

(d) the official receiver should not have been satisfied that—

(i) the debts specified in the order were qualifying debts of the debtor as at the application date,

(ii) the conditions specified in Part 1 of Schedule 4ZA were met, or

(iii) the conditions specified in Part 2 of that Schedule were met; or

(e) the official receiver should have been satisfied that the official receiver was permitted to make an order in spite of any failure to meet the conditions referred to in sub-paragraphs (d)(ii) and (iii).

Official receiver's response to objection under section 251K

9

(1) After considering a creditor's objection to a debt relief order in accordance with section 251K, the official receiver, if minded to revoke or amend the debt relief order, must deliver to the debtor—

(a) particulars of the objection;

(b) the grounds and facts upon which the creditor relies;

(c) an invitation to the debtor to deliver any comments on them to the official receiver within 21 days of delivery of the particulars; and

(d) the address to which the debtor's comments must be delivered.

(2) Before deciding whether to revoke or amend the debt relief order, the official receiver must consider any comments made by the debtor provided they are received within the 21 day period.

(3) After coming to a decision on the objection the official receiver must deliver a notice of the decision to the creditor within 14 days.

(4) If the official receiver has decided to make an application under section 251M(2) then the official receiver must treat the creditor as a person interested in the application under rule 9.21(3)(b) (if the creditor would not otherwise be such).

Creditor's request that a debt relief order be revoked (section 251L(4))

9

(1) A creditor may request that the official receiver revoke a debt relief order under section 251L(4) because either or both of the conditions in paragraphs 7 and 8 of Schedule 4ZA are not met at any time after the debt relief order was made.

(2) The request must contain—

(a) the name and address of the creditor;

(b) the name of the debtor and the reference number of the order;

(d) a statement of the facts on which the creditor relies; and

(e) information and documents supporting the facts which are relied upon.

(3) After coming to a decision on the request the official receiver must deliver a notice of the decision to the creditor within 14 days.

(4) If the official receiver has decided to make an application under section 251M(2) then the official receiver must treat the creditor as a person interested in the application under rule 9.21(3)(b) (if the creditor would not otherwise be such).

Procedure in revoking or amending a debt relief order (section 251L)

9

(1) The official receiver must as soon as reasonably practicable after deciding to revoke a debt relief order under section 251L deliver notice of the decision to the debtor and the creditors.

(2) The notice must contain—

(a) identification details for the debtor;

(b) the date and reference number of the debt relief order;

(d) the date (under subsection (5) or (7) of section 251L) on or from which the revocation has effect.

(3) Where the official receiver —

(a) has delivered notices under paragraph (1) of the revocation of a debt relief order from a specified date; and

(b) thinks it appropriate under section 251L(7) to revoke the debt relief order with immediate effect before the specified date;

the official receiver must deliver a notice of the new date to anyone who previously received a notice under paragraph (1).

(4) The official receiver must cause the entry in the individual insolvency register relating to the order to be amended so far as information concerning the order has not already been deleted under rule 11.19.

(5) Where the debtor has died during the moratorium period rule 9.20 applies.

(6) The official receiver must as soon as reasonably practicable after amending a debt relief order deliver a notice of the amendment to the debtor and the creditors.

(7) The notice must contain—

(a) identification details for the debtor and the date and reference number of the debt relief order;

(b) the amendment;

(d) the reasons for it.

(8) The official receiver must as soon as reasonably practicable cause the entry in the individual insolvency register relating to the amended debt relief order to be amended accordingly.

Debtor's notification of official receiver of matters in section 251J(3) or (5)

9

(1) The debtor must deliver a notice to the official receiver as soon as reasonably practicable after the debtor becomes aware of an error in, or omission from, the information supplied to the official receiver in, or in support of, the application.

(2) The notice must state the nature of the error or omission and the reason for it.

(3) The debtor must deliver a notice to the official receiver as soon as reasonably practicable after the debtor becomes aware of a change in the debtor's circumstances between the application date and the determination date that would affect (or would have affected) the determination of the application.

(4) The notice must state the nature of the change and the date of the change.

(5) Where a debt relief order is made and—

(a) the debtor's income increases during the moratorium period applicable to the order, the debtor must as soon as reasonably practicable after the date of the increase deliver a notice to the official receiver stating—

(i) the amount of the increase,

(ii) the reason for it,

(iii) the date of the increase, and

(iv) its expected duration;

(b) the debtor acquires property or property is devolved upon the debtor during that period, the debtor must as soon as reasonably practicable after the date of the acquisition or devolution deliver a notice to the official receiver stating—

(i) the nature of the acquisition or devolution,

(ii) the date of the acquisition or devolution,

(iii) the reason for it, and

(iv) its value;

(c) the debtor becomes aware of any error in or omission from any information supplied by the debtor to the official receiver after the determination date, the debtor must as soon as reasonably practicable after the date on which the debtor becomes aware of it deliver a notice to the official receiver, stating—

(i) the nature of the error or omission,

(ii) the reason for it, and

(iii) the date on which the debtor became aware of it.

Death of debtor during a moratorium period under a debt relief order

9

(1) This rule applies where a debtor dies during a moratorium period under a debt relief order.

(2) The official receiver must, as soon as reasonably practicable after being informed of the death of the debtor—

(a) cause a note of the fact and the date of the death to be entered on the individual insolvency register under rule 11.23;

(b) revoke the debt relief order; and

(i) the creditors, and

(ii) the personal representatives of the debtor.

(3) The notice of revocation must—

(a) state the reason for the revocation; and

(b) specify the date on which the revocation took effect.

CHAPTER 6 — Applications to the court

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Notice of application to court under section 251M

9

(1) This rule applies to applications to the court under section 251M.

(2) Where the application is made by a person who is dissatisfied by an act, omission or decision of the official receiver in connection with a debt relief order or an application for a debt relief order the applicant must deliver a notice—

(a) if the applicant is the debtor, to the official receiver and any creditor specified in the debt relief order or in the application for the debt relief order; or

(b) if the applicant is a person other than the debtor, to the official receiver and the debtor.

(3) Where the application is made by the official receiver for directions or an order in relation to a matter arising in connection with a debt relief order or an application for such an order, the official receiver must deliver notice to—

(a) the debtor; and

(b) any person appearing to the official receiver to have an interest in the application.

Court in which applications under sections 251M or 251N are to be made

9

(1) An application to the court under section 251M or 251N must be made to—

(a) the County Court at Central London, where the proceedings are allocated to the London Insolvency District under rule 12.5(a)(i) to (iv);

(b) the High Court, where the proceedings are allocated to the London Insolvency District under rule 12.5(a)(v);

(c) the debtor's own hearing centre as determined under paragraph (3) (subject to paragraph (4)), in any other case where the debtor is resident in England and Wales.

(2) The application may be filed either with the debtor's own hearing centre or with the High Court if—

(a) the debtor is not resident in England and Wales but was resident or carried on business in England and Wales within the six months immediately before the application is filed with the court; and

(b) the proceedings are not allocated to the London Insolvency District.

(3) In this rule the debtor's own hearing centre is—

(a) where the debtor has carried on business in England and Wales within the six months immediately before the application is filed with the court, the hearing centre which serves the insolvency district where for the longest period during those six months—

(i) the debtor carried on business, or

(ii) the principal place of business was located, if business was carried on in more than one insolvency district; or

(b) where the debtor has not carried on business in England and Wales within the six months immediately before the application is filed with the court, the hearing centre which serves the insolvency district where the debtor resided for the longest period during those six months.

(4) Where, for whatever reason, it is not possible for the application to be filed with the debtor's own hearing centre, the applicant may, with a view to expediting the application, file the application—

(a) where paragraph (3)(a) applies, with—

(i) the hearing centre for the insolvency district in which the debtor resides, or

(ii) the hearing centre specified in Schedule 6 as the nearest full-time hearing centre to the hearing centre specified in paragraph (3)(a), or paragraph (i) as the case may be; or

(b) where paragraph (3)(b) applies, with the hearing centre specified in Schedule 6 as being the nearest full-time hearing centre to that specified in paragraph (3)(b).

(5) The application must contain sufficient information to establish that it is brought in the appropriate court, and where the application is made to the County Court, the appropriate hearing centre.

Creditor's bankruptcy petition: creditor consents to making application for a debt relief order

9

(1) This rule applies where before the determination of an application for a debt relief order, a creditor's petition for bankruptcy has been presented against a debtor and the proceedings in relation to the petition remain before the court.

(2) In this rule “the debt” means the debt to which the creditor's bankruptcy petition relates.

(3) If, on the hearing of the petition, the petitioner consents to the debtor making an application for a debt relief order in relation to the debt the court must—

(a) refer the debtor to an approved intermediary for the purpose of making an application for a debt relief order in relation to the debtor and the debt noting the consent of the creditor on the order for referral; and

(b) stay the proceedings on the petition in relation to the debt on such terms and conditions as it thinks just.

(4) The debtor must deliver to the approved intermediary as soon as reasonably practicable after the making of the order of referral—

(a) a sealed copy of the order; and

(b) copies of the petition and the creditor's statutory demand (if there was one).

(5) The approved intermediary must, on receipt of the order and the copies, as soon as reasonably practicable after the application for a debt relief order has been made, deliver them to the official receiver endorsed with the name of the debtor and the number of the application to which they relate.

(6) If, following the reference by the court, a debt relief order is made in relation to the debt, the petition must be dismissed in relation to it unless the court otherwise directs.

Extension of moratorium period

9

Where the moratorium period applicable to a debt relief order is extended—

(a) notice of the extension, and the period of extension must be delivered—

(i) where extended by the court, to the official receiver, who must deliver a copy to the debtor and to the creditors specified in the debt relief order,

(ii) where extended by the official receiver, to the debtor and to the creditors specified in the debt relief order; and

(b) the official receiver must cause to be entered in the individual insolvency register—

(i) that such an extension has been made in relation to the debtor,

(ii) the date on which the extension was made,

(iii) its duration, and

(iv) the date of the anticipated end of the moratorium period.

CHAPTER 7 — Permission to act as a director, etc.

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Application for permission under the Company Directors Disqualification Act 1986

9

(1) This rule relates to an application for permission under section 11 of the Company Directors Disqualification Act 1986 , to act as director of, or to take part or be concerned in the promotion, formation or management of a company by a person—

(a) in relation to whom a moratorium period under a debt relief order applies; or

(b) in relation to whom a debt relief restrictions order or undertaking is in force.

(2) The application must be supported by a witness statement which must contain identification details for the company and specify—

(a) the nature of its business or intended business, and the place or places where that business is, or is to be, carried on;

(b) in the case of a company which has not yet been incorporated, whether it is, or is to be, a private or a public company;

(c) the persons who are, or are to be, principally responsible for the conduct of its affairs (whether as directors, shadow directors, managers or otherwise);

(d) the manner and capacity in which the applicant for permission proposes to take part or be concerned in the promotion or formation of the company or, as the case may be, its management; and

(e) the emoluments and other benefits to be obtained by virtue of the matters referred to in paragraph (d).

(3) The court must fix a venue for the hearing of the application, and must deliver a notice to the applicant for permission accordingly.

Report of official receiver

9

(1) The applicant for permission must, not less than 28 days before the date fixed for the hearing, deliver to the official receiver, notice of the venue, accompanied by copies of the application and the witness statement under rule 9.25.

(2) The official receiver may, not less than 14 days before the date fixed for the hearing, file with the court a report of any matters which the official receiver considers ought to be drawn to the court's attention.

(3) A copy of the report must be delivered by the official receiver, as soon as reasonably practicable after it is filed, to the applicant for permission.

(4) The applicant for permission may, not later than five business days before the date of the hearing, file with the court a notice specifying any statements in the official receiver's report which are to be denied or disputed.

(5) If a notice is filed under paragraph (4), the applicant for permission must deliver copies of it, not less than three business days before the date of the hearing, to the official receiver.

(6) The official receiver may appear on the hearing of the application, and may make representations and put to the applicant for permission such questions as the court may allow.

Court's order on application

9

(1) If the court grants the application for permission under section 11 of the Company Directors Disqualification Act 1986, its order must specify that which by virtue of the order the applicant has permission to do.

(2) The court may at the same time, having regard to any representations made by the official receiver on the hearing of the application, exercise in relation to the moratorium period or the debt relief order to which the applicant for permission is subject, any power which it has under section 251M.

(3) Whether or not the application is granted, copies of the order must be delivered by the court to the applicant and the official receiver.

PART 10 — BANKRUPTCY

CHAPTER 1 — The statutory demand

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

The statutory demand (section 268)

10

(1) A statutory demand under section 268 must contain—

(a) the heading either “Statutory demand under section 268(1) (debt payable immediately) of the Insolvency Act 1986” or “Statutory demand under section 268(2) (debt not immediately payable)”;

(b) identification details for the debtor;

(d) a statement of the amount of the debt, and the consideration for it (or, if there is no consideration, the way in which it arises);

(e) if the demand is made under section 268(1) and founded on a judgment or order of a court, the date of the judgment or order and the court in which it was obtained;

(f) if the demand is made under section 268(2), a statement of the grounds on which it is alleged that the debtor appears to have no reasonable prospect of paying the debt;

(g) if the creditor is entitled to the debt by way of assignment, details of the original creditor and any intermediary assignees;

(h) a statement that if the debtor does not comply with the demand bankruptcy proceedings may be commenced;

(i) the date by which the debtor must comply with the demand, if bankruptcy proceedings are to be avoided;

(j) a statement of the methods of compliance which are open to the debtor;

(k) a statement that the debtor has the right to apply to the court to have the demand set aside;

(l) a statement that rule 10.4(4) of the Insolvency (England and Wales) Rules 2016 states to which court such an application must be made; and name the court or hearing centre of the County Court to which, according to the present information, the debtor must make the application (i.e. the High Court, the County Court at Central London or a named hearing centre of the County Court as the case may be);

(m) a statement that any application to set aside the demand must be made within 18 days of service on the debtor; and

(n) a statement that if the debtor does not apply to set aside the demand within 18 days or otherwise deal with this demand within 21 days after its service the debtor could be made bankrupt and the debtor's property and goods taken away.

(2) Where the statutory demand is served by a Minister of the Crown or a Government Department the statutory demand must explain that the debtor may alternatively apply to set aside the demand to the High Court or the County Court at Central London (as the case may be) if the Minister or Department intends to present a bankruptcy petition to one of them.

(3) A demand must name one or more individuals with whom the debtor may communicate with a view to—

(a) securing or compounding the debt to the satisfaction of the creditor; or

(b) establishing to the creditor's satisfaction that there is a reasonable prospect that the debt will be paid when it falls due.

(4) The postal address, electronic address and telephone number (if any) of the named individual must be given.

(5) A demand must be dated and authenticated either by the creditor or by a person who is authorised to make the demand on the creditor's behalf

(6) A demand which is authenticated by a person other than the creditor must state that the person is authorised to make the demand on the creditor's behalf and state the person's relationship to the creditor.

(7) If the amount claimed in the demand includes—

(a) any charge by way of interest of which notice had not previously been delivered to the debtor as a liability of the debtor's; or

(b) any other charge accruing from time to time,

the amount or rate of the charge must be separately identified, and the grounds on which payment of it is claimed must be stated.

(8) The amount claimed for such charges must be limited to that which has accrued at the date of the demand.

(9) If the creditor holds any security in respect of the debt, the full amount of the debt must be specified, but—

(a) the demand must specify the nature of the security, and the value which the creditor puts upon it at the date of the demand; and

(b) the demand must claim payment of the full amount of the debt, less the specified value of the security.

(10) When the statutory demand is to be served out of the jurisdiction, the time limits of 18 days and 21 days referred to in sub-paragraphs 10.1(1)(m) and (n) above must be amended as follows—

(a) for any reference to 18 days there must be substituted the number of days which is the appropriate number of days set out in the table accompanying the Practice Direction supplementing Section IV of CPR Part 6 plus 4 days; and

(b) for any reference to 21 days there must be substituted the number of days which is the appropriate number of days set out in the table accompanying the Practice Direction supplementing Section IV of CPR Part 6 plus 7 days.

Service of statutory demand

10

A creditor must do all that is reasonable to bring the statutory demand to the debtor's attention and, if practicable in the particular circumstances, serve the demand personally.

Proof of service of statutory demand

10

(1) Where section 268 requires a statutory demand to be served before the petition, a certificate of service of the demand must be filed with the court with the petition.

(2) The certificate must be verified by a statement of truth and be accompanied by a copy of the demand served.

(3) If the demand has been served personally on the debtor, the statement of truth must be made by the person who served the demand unless service has been acknowledged in writing by the debtor or a person authorised to accept service.

(4) If service has been acknowledged in writing either by—

(a) the debtor; or

(b) a person who is authorised to accept service on the debtor's behalf and who has stated that this is the case in the acknowledgement of service;

then the certificate of service must be authenticated either by the creditor or by a person acting on the creditor's behalf, and the acknowledgement of service must accompany the certificate.

(5) If the demand has been served other than personally and there is no acknowledgement of service, the certificate must be authenticated by a person or persons having direct personal knowledge of the means adopted for serving the statutory demand, and must contain the following information—

(a) the steps taken to serve the demand; and

(b) a date by which, to the best of the knowledge, information and belief of the person authenticating the certificate, the demand will have come to the debtor's attention.

(6) Where paragraph (5) applies the statutory demand is deemed to have been served on the debtor on the date referred to in paragraph (5)(b) unless the court determines otherwise.

Application to set aside statutory demand

10

(1) The debtor may apply to the court for an order setting aside the statutory demand.

(2) The application must be made within 18 days from the date of the service of the statutory demand.

(3) The application must—

(a) identify the debtor;

(b) state that the application is for an order that the statutory demand be set aside;

(d) be dated and authenticated by the debtor, or by a person authorised to act on the debtor's behalf.

(4) The application must be made to the court or hearing centre—

(a) determined in accordance with rule 10.48; or

(b) to which rule 10.11(1) requires a petition to be presented if—

(i) the creditor serving the statutory demand is a Minister of the Crown or a government Department,

(ii) the debt in respect of which the statutory demand is made, or part of it equal to or exceeding the bankruptcy level (within the meaning of section 267), is the subject of a judgment or order of a court, and

(iii) the statutory demand—

(aa) specifies the date of the judgment or order and the court in which it was obtained, and

(bb) indicates the creditor's intention to present a bankruptcy petition against the debtor in the High Court or the County Court at Central London as the case may be.

(5) The time within which the debtor must comply with the statutory demand ceases to run on the date the application is filed with the court, subject to any order of the court under rule 10.5.

(6) The debtor's application must be accompanied by a copy of the statutory demand, where it is in the debtor's possession, and supported by a witness statement containing the following—

(a) the date on which the debtor became aware of the statutory demand;

(b) the grounds on which the debtor claims that it should be set aside; and

Hearing of application to set aside

10

(1) On receipt of an application to set aside a statutory demand, the court may, if satisfied that no sufficient cause is shown for it, dismiss it without giving notice of the application to the creditor.

(2) The time for complying with the statutory demand runs again from the date the application is dismissed under paragraph (1).

(3) Unless the application is dismissed under paragraph (1), the court must fix a venue for it to be heard, and must give at least five business days' notice to—

(a) the debtor or, if the debtor's application was made by a solicitor acting for the debtor, to the solicitor;

(b) the creditor; and

(c) whoever is named in the statutory demand as the person with whom the debtor may communicate about the demand (or the first such if more than one).

(4) On the hearing of the application, the court must consider the evidence then available to it, and may either determine the application or adjourn it, giving such directions as it thinks appropriate.

(5) The court may grant the application if—

(a) the debtor appears to have a counterclaim, set-off or cross demand which equals or exceeds the amount of the debt specified in the statutory demand;

(b) the debt is disputed on grounds which appear to the court to be substantial;

(c) it appears that the creditor holds some security in relation to the debt claimed by the demand, and either rule 10.1(9) is not complied with in relation to it, or the court is satisfied that the value of the security equals or exceeds the full amount of the debt; or

(d) the court is satisfied, on other grounds, that the demand ought to be set aside.

(6) An order setting aside a statutory demand must contain—

(a) identification details for the debtor;

(b) the date of the hearing of the application;

(d) an order that the statutory demand be set aside;

(e) details of any further order in the matter; and

(f) the date of the order.

(7) Where the creditor holds some security in relation to the debt and has complied with rule 10.1(9) but the court is satisfied that the statutory demand undervalues the security, the court may order the creditor to amend the demand (but without prejudice to the creditor's right to present a bankruptcy petition by reference to the original demand as so amended).

(8) If the court dismisses the application, it must make an order authorising the creditor to present a bankruptcy petition either as soon as reasonably practicable, or on or after a date specified in the order.

(9) The court must deliver a copy of any order under paragraphs (6) to (8) to the creditor as soon as reasonably practicable.

CHAPTER 2 — CREDITORS' BANKRUPTCY PETITIONS

Preliminary

[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]

Application and interpretation

10

(1) This Chapter relates to a creditor's petition and making a bankruptcy order on such a petition.

(2) In this Chapter “the debt” means the debt in relation to which the petition is presented.

(3) This Chapter also applies to a petition under section 264(1)(c) by a supervisor of, or person bound by, an IVA , with any necessary modifications.

Contents of petition

10

(1) The petition must state—

(a) the name and postal address of the petitioner;

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