ABSTRACT
The Act The Insolvency Act 1986 – which came into force on 29 December 1986 and applies to all insolvencies (except deeds of assignment) commenced (by petition or otherwise) after that date. The parts of the Act relating to companies applies not only to England and Wales but also to Scotland. All
29 December 1986 continue to be subject to the Bankruptcy Act 1914 or the Companies Act 1985 as the case may be, except that there are in Sched 11 to the Act certain transitional provisions including: (a) power for the Secretary of State to
appoint trustees or liquidators to old Act cases
(b) automatic discharge from bankruptcy of all old Act bankrupts on 29 December 1989
(c) power for the trustee or liquidator to agree costs (instead of taxation) (r 7.34(6))
Administrator The person appointed by the court to handle the affairs of a company the subject of an administration order
Administrative receiver The person appointed by the holder of a floating charge debenture over a company’s assets to collect in and realise the assets of that company to repay the indebtedness to the debenture holder
Authorised (or licensed) insolvency practitioner The person (usually an accountant or
solicitor) authorised by the Department of Trade and Industry (DTI) or a professional body to act as trustee, nominee, supervisor, liquidator, administrative receiver or administrator. Only such a person can hold any of these offices
Bankrupt See undischarged bankrupt Bankruptcy order The court order making an individual
bankrupt (this replaces the concept of the receiving order and adjudication of bankruptcy in the old Act cases)
CPR Civil Procedure Rules
liquidation as a result of an application to the court, usually by a creditor (see Chapter 7)
Contributory Shareholder CVA Company voluntary arrangement (see
Chapter 10) DTI Department of Trade and Industry
(headed up by the Secretary of State) Fee The court fee payable as prescribed by
the Supreme Court Fees Order or the County Court Fees Order
Insolvent The state of not being able to pay one’s debts as they fall due or having an excess of liabilities over assets
IVA Individual voluntary arrangement (see Chapter 4).
