DMBM585190 - Pre-enforcement: consider the defaulter: insolvent debtors

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Individuals

Do not start proceedings against an individual if you learn that formal proceedings against them have been started under the Insolvency Acts, that is:

  • in England and Wales, where:
  • a Bankruptcy Order has been made
  • an Interim Order for a Voluntary Arrangement has been made or applied for
  • in Scotland, where:
  • a petition for sequestration has been made
  • a Trust Deed has been signed and lodged with a Trustee.

Insolvent Partnerships

For further information on insolvent partnerships, see DMBM570020.

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Limited companies

Do not start proceedings against a limited company if:

  • a petition has been presented to wind up the company (a company liquidation)
  • the company has passed a resolution for voluntary winding-up (a company voluntary liquidation)
  • a petition has been presented for a Company Administration Order
  • a creditors meeting has been held and proposals made for a Company Voluntary Arrangement.

Liquidators

You will find more information about insolvency in the Insolvency Manual.