Users' questions

Why was the Insolvency Act 1986 introduced?

Why was the Insolvency Act 1986 introduced?

The Insolvency Act 1986 was designed to deal with issues such as the underutilisation of the provisions for schemes of composition and arrangement once bankruptcy proceedings had started in the Bankruptcy Act 1914. The Act established a more flexible system of voluntary arrangements.

What happens if I get an IVA?

If you decide to get an IVA, you will work out a repayment plan with the insolvency practitioner. Any repayments will be paid directly to the insolvency practitioner. They will then distribute the money to your creditors. Some of this will be kept by the insolvency practitioner to pay their fees.

Does the insolvency Act apply to companies?

As set out above, the laws of personal insolvency apply in the winding-up of a company unable to pay its debts, through express incorporation in the Old Companies Act, in respect of any matter not specifically provided for in the Old Companies Act.

What is the balance sheet test?

A balance sheet test is a legal exercise to establish whether your company is in an insolvent state. A court will determine what value to attribute to the prospective and contingent liabilities of a company.

What is a statutory demand?

What is a statutory demand? A statutory demand is a kind of written warning from a creditor. It will state that if you don’t pay your debt or come to another arrangement that’s acceptable to the creditor, they may start court proceedings to make you bankrupt.

Are liquidators regulated?

Who are liquidators in company insolvency? Independent liquidators are licensed and regulated individuals appointed by either an insolvent company’s directors, or the Official Receiver after the initial stages of a compulsory liquidation are complete.

Can liquidators take your house?

A limited company Director can lose their home as a result of their company going into Liquidation. However, it is likely that it will not happen directly unless there is misconduct or a call on a personal guarantee.

Do IVA check bank statements?

Can an IVA see my bank account? During your IVA application you will be expected to go through a rigorous affordability check that involves providing bank statements, account details, wage slips, and other details that allow your IP to work out an affordable monthly payment for you.

Is Insolvency Act 283A up to date?

Insolvency Act 1986, Section 283A is up to date with all changes known to be in force on or before 16 December 2021. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Revised legislation carried on this site may not be fully up to date.

Are there any outstanding effects of the Insolvency Act 1986?

For further information see the Editorial Practice Guide and Glossary under Help. There are currently no known outstanding effects for the Insolvency Act 1986, Section 283. Revised legislation carried on this site may not be fully up to date.

When did the legislation come into force in Northern Ireland?

The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate.

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