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March 2008
PART 3
4.54 Notice of bankruptcy order – general
This Part of the Chapter provides information and guidance on the sending of initial notices and other letters following the making of the bankruptcy order. Paragraphs 4.56 to 4.58 cover those organisations to whom immediate or 24hr notice should be sent; paragraphs 4.60 to 4.76 cover those organisations to whom notice should be sent once appropriate information has been obtained by the official receiver; and paragraphs 4.77 to 4.108 cover those organisations who should be notified in specific circumstances.
4.55 Notice of bankruptcy order - immediate notice
The official receiver should give notice of the bankruptcy order by telephone or by first class mail or by any available faster or more cost effective method such as fax or DX (references should be included where available), within 24 hours of the making of the order (or as soon as possible if insufficient information is available to allow for immediate contact), to the organisations in paragraphs 4.56 to 4.58
The list of organistations outlined in paragraphs 4.56 to 4.58 is not exhaustive and the official receiver should use his/her judgment to decide if immediate notice should be issued to any other parties.
The official receiver should notify any banks where the bankrupt held an account as soon as practically possible (and certainly within five working days of the bankruptcy order) and should do so as soon as he/she obtains the bank's full address and account numbers. A list of bank contact details is available on Official Receiver Operations Section's (OROS) intranet site 'http://intranet/OROS/CaseMngment/Banks/BanksHome.htm'. If any operational difficulties are experienced with the bank contacts given, the official receiver should inform OROS.
With regards to internet and telephone bank accounts, the OR should not ask for details of the password, pin number or security information, or attempt to access the account through the internet or telephone.
Two standard letters, BANK 1 and BANK 2, are available through document production for dealing with an insolvent’s bank account. Both letters offer various options on how to deal with the account concerned.
BANK1 notifies a bank of the bankruptcy order and should be used where the official receiver is content for the account to be closed. There are options available, accessed via pop-ups on document production, to cover the following circumstances: -
BANK2 is available for use in cases where the official receiver is content for the bankrupt to continue to use the account, subject to bank policy. It is most likely that this will occur when the bankrupt's regular income is paid into the account concerned. There are options available to tailor this letter: -
Where the official receiver is realising a credit balance on a bank account, he/she should take a practical approach. The cost of the efforts made should not be more than the amount realised. If the balance (or sum of balances with one bank) which the official receiver is seeking to realise is £50 or less, BANK 1 should be sent asking for the balance, perhaps a telephone call to follow up and then no more than one further follow-up letter. Where the amount to be realised exceeds £50, the official receiver should use his/her discretion as to the effort required from his/her staff (see Part 3 of Chapter 31.5 for further information on the realisation of cash at bank).
4.57 Credit and charge card companies
It is particularly important to give immediate notice to credit and charge card companies, where the bankrupt operated a facility for acceptance of payment by credit/charge card for his/her goods or services, as the bankrupt could be continuing to accept payment from debtors after the date of the order. Notice of the order quoting the business account number should be sent to relevant credit/charge card. Credit or charge card companies are unlikely to be able to trace an account without an account number and any correspondence sent without such an account number will probably be returned requesting the account number. It may be prudent, therefore, to obtain the account numbers from the bankrupt or his/her records before attempting to make contact with credit or charge card companies.
4.58 Others - the official receiver should also contact;
4.59 Notice of bankruptcy order – within 24 hours, or as soon as possible
Notice of the bankruptcy order must also be given on the appropriate form by first class mail to the organisations listed in paragraphs 4.60 to 4.108 within 24 hours of becoming aware of them. The initial telephone enquiries made may not always provide sufficient information to enable the official receiver to contact more than a limited number of organisations, such as the courts or the bankrupt’s solicitors and accountants. Sufficient information is likely to be obtained at first interview when any remaining notifications of the order should be sent.
Within 24 hours of receiving the bankruptcy order the official receiver must send notice of the order to the Chief Land Registrar, unless the court orders otherwise [note 1] [note 2] [note 3]. The court will only order otherwise if the bankrupt or a creditor applies for the official receiver to suspend action under rule 6.34(2) or 6.46(2), for instance where there is a prospect of a rescission or annulment (see paragraph 4.28). It is for the applicant to deliver a copy of any relevant order to the official receiver, who should carry on as normal in the meantime [note 4].
Where the title of the proceedings is subsequently amended by order of the court (see paragraphs 4.18 to 4.20) , notice of this must be sent to the Land Registry. This notification will result in a restriction being registered against property owned solely by the bankrupt. Where the bankrupt has an interest in jointly owned property a Form J restriction must be registered at the appropriate district land registry as the bankruptcy restriction will not be registered against jointly owned property.
Notice to the Land Registry of any order of the court vacating the registration of a petition or of a bankruptcy order (for example following annulment of the bankruptcy order) is a matter for the debtor and a provision to this effect will be included in the court order.
Detailed information relating to dealings with the Land Registry, including an outline of the procedures when a bankruptcy order is made, is contained in Chapter 50.
4.61 Courts – general notice (amended May 2010)
In High Court cases the official receiver should consider sending notification of the order to the local county court as the bankrupt may be a party to legal proceedings of which the official receiver is unaware.
Where, at the date of the bankruptcy order, it is known that the bankrupt is a party to other legal proceedings, the official receiver should forthwith notify the court(s) and other parties (quoting their case numbers or other court references if known). Official receivers may adapt the standard Notice of Order form [note 5] for this purpose.
Notification should be sent to the court(s) by recorded delivery within 24 hours of the making of the order or by the fastest available means (such as fax or DX) if more urgent delivery is warranted by the circumstances of the case. Official receivers may adapt the standard Notice of Order form [note 6] for this purpose.
See paragraph 4.50 for further information on the action to be taken at the initial stage when proceedings are ongoing against a bankrupt.
4.62 County courts – notice in respect of execution levied
The District Judge of the county court for all areas in which the bankrupt has traded or resided in the previous six months should be sent the standard form NTSH, accompanied by a blank schedule of executions levied. The schedule should be completed by the court to show whether any goods or monies have been seized on behalf of a judgement creditor over which the official receiver may have a claim (see Part 2 of Chapter 9 for further information in this regard).
4.63 Notice to High Court Enforcement Officers (amended April 2010)
Since 1 April 2004, there has been no certainty about which High Court Enforcement Officer (HCEO) will hold a High Court writ of execution [note 7]. HCEOs are not bound by any geographical restrictions and individual officers can chose to act in any area. Judgment creditors can request that a particular enforcement officer is appointed in the execution of a writ, or writs may also be allocated for execution on a rota basis to those enforcement officers who have chosen to act in the relevant area.
The database (NICEsheriffs) and allocation of work to HCEOs is managed by Registry Trust Limited. This organisation receives notice of all bankruptcy orders via electronic transfer from the Insolvency Service and it is, therefore, not necessary to send notices of bankruptcy to Registry Trust Limited.
In cases where an insolvency petition was presented before 6 April 2010, The Rules [note 8] state that the official receiver should deliver by hand or send by recorded delivery written notice of the making of a bankruptcy order to the appropriate HCEO in order that goods and/or money will be preserved for the insolvency estate. In practice HCEOs generally accept the electronic notification to NICEsheriffs as sufficient. In the event that the enforcement officer requires notice in writing, (for example, if he/she has taken goods in execution) [note 9] Registry Trust Limited will request the official receiver to send a notice [note 10] complying with the rules to the HCEO acting in the execution.
In cases where the insolvency petition was presented on or after 6 April 2010, the Insolvency (Amendment) Rules 2010 permits notice of the bankruptcy to be given to the enforcement officer by any means of delivery which enables proof of receipt of the document at the relevant address. This specifically includes giving notice by electronic means to any person who has been authorised to receive such notice on behalf of a specified enforcement officer or on behalf of enforcement officers generally [note 9A]. This amendment confirms that electronic notification to NICEsheriifs is sufficient notification to the HCEO to protect any goods or monies held by them.
The contact details of the organisation who manage the database of HCEOs is:
NICESheriffs
Registry Trust Limited
173-175 Cleveland Street
London
W1T 6QR
DX137592
EUSTON 4DX
Details of individual enforcement officers can be obtained at www.hceoa.org.uk
a) Tax and National Insurance contributions - the Insolvency Claims Handling Unit deals with claims in insolvency proceedings relating to both tax and National Insurance. Data on new bankruptcy cases is automatically extracted from LOIS and sent to HMRC at Longbenton. The data is collected three days after it has been input onto LOIS and is sent automatically to the Inland Revenue on Monday, Tuesday and Friday. It is imperative therefore that the case name is entered onto LOIS as quickly and as accurately as possible. It is not necessary to send a paper copy of the information.
b) VAT - In every case where the insolvent is registered for VAT, the official receiver should complete HMRC form VAT 769 (notification of insolvency) as soon as possible and indicate on the form whether deregistration is appropriate. This form is the initial document informing HMRC of the insolvency. Where possible the VAT number should be provided. If this is not available the form should still be sent as HMRC will attempt to locate the case through searches. HMRC would prefer the VAT 769 to be sent electronically as there is less chance of the forms going astray. To access the VAT769 visit the HMRC site, www.hmrc.gov.uk, click on the red box 'businesses and corporations', under Forms, click VAT forms and the VAT 769 is listed.
The completed form should be sent to insolvencyhelpdesk@hmrc.gsi.gov.uk.
Forms sent by post should be sent to:
HMRC
VAT Operations Insolvency
3rd Floor NW
Queens Dock
Liverpool
L74, 4AA
No other notification of the order is required.
Further information on contacting Crown departments can be found on the OROS pages of the Intranet (http://intranet/OROS/OROS/ContactWithCrownDepa/ContactWithCrownHome.htm).
Please see Chapter 77 – Direct Taxation and Chapter 78 – Value Added Tax for more information.
4.65 Landlord (amended February 2011)
If the bankrupt resides in premises under an assured shorthold tenancy agreement, or in premises otherwise exempt (e.g. local authority or registered social landlord tenancies) the agreement does not form part of the bankrupt’s estate [note 10A] and the official receiver is satisfied that the landlord is not a creditor of the bankruptcy estate, it is not necessary to send the landlord the standard letter [note 11].
The landlord of any premises occupied or rented by the bankrupt in other circumstances should be issued with the standard letter [note 11]. Where the landlord has taken back possession or intimates his/her intention of levying distress, reference should be made to Chapter 9, Part 1.
If there are accounting records at the premises, arrangements should be made for the collection of any accounting records or other papers within 10 days of the making of the order. See also Chapter 10, Part 2 for more information on obtaining custody of accounting records.
The letter to the bankrupt’s accountants requests a copy of the last accounts they prepared [note 12]. Arrangements should be made for the delivery or collection of any accounting records held by the accountants within 10 working days of the making of the order, ensuring that a receipt is given - see Chapter 10.
If the accountants attempt to claim a lien on the bankrupt’s records, reference should be made to Chapter 9, paragraph 9.109 and Chapter 10, Part 7.
For information and advice on the steps to take in the event of an un-cooperative accountant, please see Chapter 13, Part 2.
For further details relating to the insolvency of an accountant, see paragraph 4.77 of this Chapter and Chapter 59 -Unusual businesses and related assets, paragraphs 59.33 to 59.39.
4.67 Solicitors of the bankrupt
The standard letter to the bankrupt’s solicitors asks for details of all matters in which they have acted in the last three years [note 13].
If the solicitors attempt to claim a lien on the bankrupt’s records, reference should be made to Chapter 9, paragraph 9.109 and Chapter 10, Part 7.
For information and advice on the steps to take in the event of an un-cooperative solicitor, please see Chapter 13, Part 2 and Chapter 64.
Information relating to the insolvency of solicitors is contained in paragraph 4.93 of this Chapter and Chapter 59 – Unusual Businesses – paragraphs 59.87 to 59.94.
Insurers/brokers with whom the bankrupt has effected fire, burglary, motor or other insurance should be sent notice, quoting, when known, the policy numbers. See also Chapter 49.
Any loan creditors, including mortgagees of property should be sent notice [note 14] [note 15] in order to protect the official receiver’s interest in respect of a charged asset and make early enquiries into the value of the asset. With regards to unsecured loans, early receipt of information may assist the official receiver’s enquiries into the affairs of the bankrupt and provide helpful information for use in the vetting interview.
Notice should be sent to all relevant local authorities, if the bankrupt is responsible for the payment of council tax on his/her home or business rates on any premises, quoting the address of the premises and any reference numbers known.
If the bankrupt is no longer in occupation of the business premises, the local authority should be informed, so that no further business rates are incurred. If the bankrupt owns or leases the business premises, there may still be a liability for business rates even if the property is unoccupied.
Further information relating to the council tax system generally is also contained in paragraph 40.102.
4.71 Third parties holding bankrupt’s property
Any persons likely to hold any property of the bankrupt including any items pawned or pledged. Where a bankrupt’s property is held by a pawnbroker, reference should be made to Chapter 31.6, Part 2 paragraphs 31.6.44 to 31.6.46 [note 16].
If the assets are believed to be in jeopardy, they should be collected promptly.
4.72 Items on lease, hire or hire purchase - third party owners of goods
The owners of any goods held by the bankrupt on hire-purchase terms or under hire, leasing or conditional sale agreement or in other circumstances, such as for repair; and also suppliers of stock/goods where retention of title is claimed [note 17].
Reference should be made to paragraphs Chapter 31.6, Part 2 paragraphs 31.6.52 - 31.6.53 for the policy for dealing with third party goods.
4.73 Utilities (other than water services) – notice not normally required
The providers of utilities such as electricity, gas and telephone are now private companies and in some areas of the country there are multiple service providers which may make it difficult to identify in the early stages of a case which supplier a bankrupt dealt with.
Unless there are special circumstances, such as the continuation of a business, or complete information such as account numbers and trading address(es) is available, (for example, if a trading business is closed down and the records are available shortly after the order), then there is no reason why the utilities should be treated in a different manner to any other trade creditor, and receive notification of the order when the report to creditors and meeting notice are dispatched.
The contact details of energy suppliers in the UK are available at:
(See paragraph 4.74 for information on the action to be taken in respect of water supply companies)
4.74 Water supply – water supply company
In many areas of the Country the provision of water services is still limited to a very small number of companies. Those companies would usually form part of the standard notices package used by official receivers. Some areas have two water companies operating – one for the supply of fresh water and the other for the removal and treatment of waste water. Notice should be issued to the appropriate water supply companies as soon as the relevant information (such as account numbers and/or addresses) is available.
In case of doubt the contact details of water supply companies in the UK are available at:
http://www.ccwater.org.uk/server.php?show=nav.284
The assignee under an unregistered general assignment of book debts should be sent notice.
Assignments are void against the trustee as regards book debts which were not paid before the presentation of the bankruptcy petition unless the assignment has been registered under the Bills of Sale Act 1878 [note 18].
See paragraph 4.51 for information on dealing with book debts at the initial stage.
Notice should be sent to life assurance companies who have issued policies in which the bankrupt is interested [note 19].
See also Chapter 49.
4.77 Accountant – recognised professional body
The Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in England and Wales (ICAEW) expect that their members would notify them of any bankruptcy order. Where there is doubt that the bankrupt will notify these bodies, or the bankrupt has not surrendered to the proceedings, the official receiver should send notification. The addresses of the ACCA and ICAEW are included in Chapter 59, Annex A. See also Chapter 59, paragraphs 59.33 to 59.39.
For further details relating to the insolvency of an accountant, see Chapter 59 -Unusual businesses and related assets, paragraphs 59.33 to 59.39.
4.78 Bookmakers (August 2008)
To act as a bookmaker a person must hold an operating licence and specific individuals within the business may also be issued with personal licences, although small-scale operators are usually excluded from this additional requirement. An operating licence and where applicable, a personal licence, will lapse in the event of insolvency. The Gambling Commission issue and regulate these licences and should be notified of the making of a bankruptcy order, by sending notice to: The Gambling Commission, Victoria Square House, Victoria Square, Birmingham B2 4BP.
Where the bookmakers operate from premises, a betting premises licence must also be held; the local council issues these licences. Betting premises licences will lapse in the event of insolvency and the official receiver should obtain the appropriate licences held by the bankrupt. The local council should be notified of the making of the bankruptcy order; it may also be possible to recover a proportion of the licence fee from the local council upon surrender of the licence. Details of the appropriate local council can be obtained through the following link: http://www.direct.gov.uk/en/Dl1/Directories/Localcouncils/index.htm
Bookmakers can operate at a racetrack in which case they are likely to hold a specific type of premises licence known as a betting premises (track) licence, such bookmakers are known as on-course bookmakers. In dealing with this type of bookmaker, the official receiver should notify the racetrack offices of the making of the bankruptcy order.
HM Revenue and Customs should be informed when a bankruptcy order is made against a bookmaker, notice being sent to: HM Revenue & Customs, Greenock Accounting Centre (GAC), Custom House, Custom House Quay, Greenock PA15 1EQ.
For further details relating to the insolvency of a bookmaker, see Chapter 59 –Unusual businesses and related assets, paragraphs 59.43 to 59.44
4.79 Holiday pay scheme - Building & Civil Engineering Benefit (B&CE)
If the bankrupt traded in the building industry and had employees, he/she may have been a member of a Building & Civil Engineering (B & CE) scheme to provide holiday pay and retirement benefits for employees. B & CE have requested that they be informed of the bankruptcy order when the official receiver is dealing with such building industry insolvencies.
There is also a free B & CE insolvency service which prepares holiday pay and occupational pension contribution schedules.
B & CE Benefit Schemes have requested that where the insolvent had employees who were members of their scheme and who have Employment Rights Act claims, form RP1 (see paragraph 4.52) should be amended at Question 29 before it is sent to an employee to state that holiday pay is being dealt with by B&CE.
The address of B & CE is:
Manor Royal
Crawley
West Sussex
RH10 2QP
tel: 08457 414142
4.80 Trustee of a charity – relevant charity
An undischarged bankrupt cannot act as a trustee of a charity without permission of the court. Where a bankrupt holds such an office, he should be informed that he must either cease to act or make application to the court. Notification of the bankruptcy should be sent to the relevant charity [note 20].
4.81 Holder of controlled waste – Environment Agency
If the bankrupt holds controlled waste or used to be involved in dealing with such waste, whether or not a waste management permit was held, notice should be given to the relevant waste regulation authority (which is usually the local authority) and to the Environment Agency. For further information see also Chapter 82.
4.82 Barristers - Council of the Bar (Amended May 2010)
Bar Council
289-293 High Holborn
London
WC1V 7HZ
DX: 240 LDE
Tel: 020 7242 0082
Fax: 020 7831 9217
www.barcouncil.org.uk
Should be sent notice where the bankrupt is a barrister.
See also Chapter 59, paragraphs 59.40 to 59.42.
4.83 Doctors, Dentists and Pharmacists - Primary Care Trust
Where a bankruptcy order is made in relation to a dentist, doctor or pharmacist notice should be sent to the Chief Executive of the Primary Care Trust of the Area Health Authority in whose area they practice. Where the official receiver is not prepared to carry on the business, notice of his/her intention to discontinue the trading must also be given.
Contact details for the Area Health Authorities are available at (http://www.nhs.uk/ServiceDirectories/Pages/AcuteTrustListing.htmx)
In the case of a dentist or doctor in private practice it is not necessary to inform the Primary Care Trust, though it would be appropriate to notify any health plan company from which the dentist received payments (see paragraph 59.62 of Chapter 59).
For further details relating to the insolvency of a doctor or dentist, see Chapter 59 -Unusual businesses and related assets, paragraphs 59.58 to 59.67
4.84 Dentists - Dental Services Division of the NHS Business Services Authority
For every piece of work done by a dentist through NHS practice, he/she will charge a fee. That fee will be met partly by the patient and partly by the Dental Services Division of the NHS. An NHS client will pay up to a maximum of 80% of the fee charges, depending on their circumstances. In addition, the dentist will be entitled to claim other reimbursements, depending on the level of his/her NHS work - for example, a certain proportion of the business rates paid by the practice or a proportion of the costs of practice improvements. Each month the dentist will raise the equivalent of an invoice for the Dental Services Division, who will pay, via a BACS transfer, monthly in arrears.
Consequently, when a bankruptcy order is made against an individual who is trading as a dentist there may be money due to the estate. Therefore, the Official Receiver should, in addition to notifying the Primary Care Trust of the Area Health Authority (see paragraph 4.83), notify the Dental Services Division of the NHS, letting them know the name and description of the bankrupt, the date of the bankruptcy order and asking for a note of the amount owing as at that date and request that the money be held to the order of the trustee.
The contact address for the Dental Services Division is:
NHSBSA Dental Services Division
Compton Place Road
Eastbourne
East Sussex
BN20 8AD
Tel: 01323 433550
Fax: 01323 433517
See also Chapter 59, paragraphs 59.58 to 59.67.
4.85 Farmers - Department of Environment, Food and Rural Affairs
Where the bankrupt is or has been concerned in farming or similar operations and may have been in receipt of a grant or subsidy from the Department of Environment, Food and Rural Affairs, contact should be made with the Department Helpline number 08459 335577. Grants and subsidies are dealt with by the Rural Payments Agency at five regional offices throughout the country. The correct regional office can be traced using the Rural Payments Agency website www.rpa.gov.uk which gives details of the relevant addresses and phone numbers.
If the bankrupt has applied for a grant or subsidy or any other payment in respect of any scheme from the Department of Environment, Food and Rural Affairs, which has not been received, the reference under which the application was made should be endorsed on the notice.
4.86 Deposit indemnity schemes – relevant operators
Notice should be sent to the operators of any Deposit Indemnity Scheme which may cover the bankrupt’s business. Such a scheme will usually guarantee the deposits of any customers of the bankrupt. An example would be The Glass and Glazing Federation (GGF) which operates a scheme to which a double glazing contractor may belong.
Full details of any such scheme should be obtained and a schedule of the names and addresses of any of the bankrupt’s customers who may have a claim under the scheme should be provided to the operators of the scheme as quickly as possible.
4.87 Holders of National Savings accounts - Director of savings
The Director of Savings should be sent notice (quoting references) in cases in which the bankrupt is known to hold premium savings bonds or saving certificates or to have a National Savings account.
For premium bonds, guaranteed equity bonds, pensioners guaranteed income bonds and income bonds, the official receiver should send notice to the following address:
National Savings and Investments
Blackpool
FY3 9YP
For easy access savings acount, investment accounts, children’s bonus bonds, capital bonds and ordinary accounts, notice should be sent to:
National Savings and Investments
Glasgow
G58 1SB
For fixed interest savings certificates, index-linked savings certificates, direct ISAs, cash mini ISAs, fixed rate savings bonds, treasurer’s accounts, TESSA ISAs, deposit bonds, yearly plans and save as you earn, notice should be sent to:
National Savings and Investments
Durham
DH99 1NS
4.88 Holder of explosives/ firearms – Health and Safety Executive, local authority and police
In cases in which the bankrupt is the occupier of a licensed magazine or factory for explosives notice should be sent to:
The Explosives Inspectorate
Health and Safety Executive
1.2 Redgrave Court
Merton Road
Bootle
Merseyside
L20 7HS
Tel: (0151) 951 4025.
e-mail:
explosives.licensing@hse.gov.uk (enquiries regarding licensing)
cad.explosives@hse.gsi.gov.uk (enquiries regarding classification or transportation)
The storage of explosives in quantities of over two tonnes requires a licence from the Health and Safety Executive, whilst quantities of up to two tonnes which also requires an explosives certificate (that is, blasting explosives or black powder) require a licence from the local police force. The storage of explosives not requiring an explosives certificate in quantities of less than two tonnes is licenced by the local authority (usually the trading standards department), except for metropolitan counties where the licensing is carried out by the fire and rescue service.
Where explosives or firearms are discovered in the course of the official receiver’s enquiries, the local police must be notified to check that the firearms are correctly registered; neither should be touched or moved until after inspection by the police who will advise as to removal.
Police explosives liason officers’ details are available on the following web-site (http://www.hse.gov.uk/explosives/elo.htm)
Further information relating to explosives is contained in Chapter 31.6, paragraphs 31.6.29 to 31.6.31 and firearms in paragraphs 31.6.32 to 31.6.36.
4.89 Person authorised under the Banking Act 1987 - Financial Services Authority (FSA)
Where the bankrupt is an authorised institution under the provisions of the Banking Act 1987 or is a member of a partnership which holds an authorisation under the Banking Act 1987. In those circumstances a winding-up order may also have been made against the partnership as an unregistered company. Notice should be sent to the following organistations:
See also Chapter 59 Part 2
The Financial Services Authority (FSA)
25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: (0207) 066 1000
Fax (0207) 066 1099
Financial Services Compensation Scheme (FSCS)
7th Floor, Lloyds Chambers
Portsoken Street
London
E1 8BN
Tel: (0207) 892 7300
Fax: (0207) 892 7301
Further information available on the FSCS website www.fscs.org.uk
Whilst there is no obligation contained in the Insolvency Act 1986 to inform either body on the making of the order, the FSA must receive notice of the presentation of a petition against an authorised institution and both the FSA and the FSCS receive notice of the first meeting of creditors, for the purposes of continuity notification of the order should also be sent.
Please see also Chapter 80 – Financial Services and Markets Act 2000.
4.90 Asylum seekers - Home Office
Where a bankruptcy order is made against an individual who is seeking asylum, there is no statutory requirement for the official receiver to notify the Home Office. However, the Asylum and Policy Directorate of the Home Office have indicated that they would like to receive notification of the bankruptcy order and this should be sent to:
The Manager
Document Management Centre
ICD, IND
Lunar House
40 Wellesley Road
Croydon
Surrey
CR9 2BY
4.91 Insolvency Practitioners – relevant professional body
Where a bankruptcy order is made against an insolvency practitioner, details should be provided to Insolvency Practitioner Unit in Birmingham http://intranet/BSD/IPUnit/IPUnitHome.htm initially by telephone and confirmed in writing. This action should be taken even where the bankrupt ceased to practice sometime prior to the bankruptcy order. Insolvency Practitioner Unit will then notify the appropriate authorising body of the order and obtain details of any action being taken to deal with the insolvency practitioner’s affairs. Reference should be made to Chapter 55 - Insolvency Practitioners for further guidance on the action required regarding cases administered by the insolvency practitioner.
4.92 Intellectual property – Patent Office
Notice should be sent to:
The Patent Office
Concept House
Cardiff Road
Newport
NP10 8QQ
Tel: 0845 500 505,
If it appears likely that the bankrupt has an interest in any patent (if possible, the number and date of the patent or provisional patent should be quoted);
If the bankrupt has an interest in a registered design, notification should be sent to the Designs Registry at the Patent Office.
If the bankrupt has an interest in a trade mark, notification should be sent to the Trade Mark Registry at the Patent Office.
Further information relating to intellectual property is contained in Chapter 31.10, Part 2.
4.93 Solicitors - Law Society and Solicitors Regulation Authority
Where the bankrupt is a practising solicitor, notice should be sent to:
The Law Society
Legal Complaints Service
Victoria Court
8 Dorma Place
Leamington Spa
CV32 5AE
Tel: (01926) 820082
Fax: (01926) 431435
And
Solicitors Regulation Authority
Ipsley Court
Berrington Close
Reddotch
B98 0TD
Tel: 0845 850 0999
It is possible that the bankrupt may lose his/her licence to practice - see also Chapter 59, paragraphs 59.87 to 59.94.
4.94 Lloyds’ names - Lloyds of London
If a bankruptcy order is made against a Lloyd’s name notification of the bankruptcy should be sent to the Financial Recovery Department of Lloyd’s at:
One Lime Street
London
EC3M 7HA
Tel: 020 7327 1000
For further information, see Chapter 59, Part 2 and Chapter 59, Annex A.
4.95 Milk producers – milk co-operatives
A dairy farmer may have a sole supply agreement with one of the dairy farmers’ co-operatives formed following cessation of the Milk Marque scheme, or with a commercial milk wholesaler.
The two co-operatives are:
Milk Link Limited
3130 Great Western Court
Hunts Ground Road
Stoke Gifford
BRISTOL
BS34 8HP
Tel: 0870 240 5341
First Milk Limited
Cirrus House
Glasgow Airport Business Park
Marchburn Drive
PAISLEY
PA3 2SJ
Tel: 0141 887 6111
The most commonly used milk wholesalers (to whom milk producers may sell milk directly) are:
Robert Wiseman Dairies
159 Glasgow Road
East Kilbride
GLASGOW
G74 4PA
Tel: 01355 244261
Dairy Crest Group
Claygate House
Littleworth Road
Esher
SURREY
KT10 9PN
Tel: 01372 472200
Arla Foods UK plc
Arla House
4 Savannah Way
Leeds Valley Park
LEEDS
LS10 1AB
Tel: 0113 382 7000
As there may be monies due to the farmer or contractual obligations relating to current milk stocks, the co-operative or the other wholesaler should be informed of the bankruptcy order.
See also Chapter 31.6, paragraph 31.6.41.
4.96 Holder of a consumer credit licence - Office of Fair Trading
Notice should be sent to:
The Office of Fair Trading
Consumer Credit Licensing
Fleetbank House
2-6 Salisbury Square
LONDON
EC4Y 8JX
Tel:(020) 7211 8608
Where the bankrupt was operating a business for which a licence is required by the Consumer Credit Act 1974, as the licence is terminated if an individual is adjudged bankrupt.
When available, the licence should be surrendered to the Consumer Credit Licensing Bureau [note 21]
4.97 Pension schemes
If the official receiver is dealing with a bankrupt who has operated an occupational pension scheme for the benefit of employees, he/she is required under section 120 of PA2004 to send notice of an 'insolvency event' (i.e. the making of the winding - up/ bankruptcy order) to:
(a) The Pension Protection Fund
Knollys House
17 Addiscombe Road
Croydon
Surrey
CR0 6SR
Tel: 0845 600 2541
www.pensionprotectionfund.org.uk/.../
email: information@ppf.gsi.gov.uk
Note: This notice should be sent within 14-days of the insolvency or, if later, within 14-days of becoming aware of the pension scheme.
(b) The Pensions Regulator
Napier House
Trafalgar Place
Brighton
BN1 4DW
Tel: 0870 6063636
Fax: 0870 2411144
www.thepensionsregulator.gov.uk/.../
(c) The pension scheme trustees or managers
The notice is referred to as a 'section 120 notice'.
Insolvency events in relation to bankrupts are detailed in section 121(2) of the PA2004. The insolvency events which the official receiver is required to notify in addition to the making of a bankruptcy order are as follows;
The appointment of an interim trustee is not an insolvency event and notification will only be required if a bankruptcy order is made at the substantive hearing of the petition. Change of office - holder in the same procedure, such as the handing over of a case to an insolvency practitioner does not need to be notified.
The official receiver should use form 'section 120 notice' which can be accessed by following this link http://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/s120notice.pdf to the PPF's website. This is a suggested pro forma only and not a legally prescribed form.
For more information regarding pensions schemes see Chapter 61.
4.98 Where bankrupt is a serving police officer – relevant Chief Constable
Where a bankruptcy order is made against a serving police officer, there is no statutory requirement for the official receiver to notify the Chief Constable of the relevant constabulary of the making of the order but the police officer should be expected to declare his/her bankrupt status to the constabulary himself/herself. It is possible for a police officer to be dismissed for failing to pay a lawful debt [note 22]. The official receiver should suggest to the bankrupt that he/she notifies his/her employer but should not take any steps to notify the constabulary himself/herself.
4.99 Subpostmasters and Subpostmistresses – Post Office
(Amended December 2009)
Post Office branches are managed under a number of different contract types, and contract type dictates the title that the individuals are given. Most post office branches are Scale Payment Sub-Offices (SPSO’s) and are managed by “Subpostmasters”or “Subpostmistresses”. Other contracts are managed by “Operators” or “Franchisees”. The title “Postmaster” was previously used to refer to the managers of Post Office branches run by Post Office Limited staff, however these staff are now referred to as branch managers.
If a bankruptcy order is made against an individual running a post office then Post Office Limited Audit Team should be contacted. The individual should be able to supply the details of their contact in the Post Office but, failing that, the Audit Team can be contacted by fax on 01622 777046.
4.100 Investment businesses - regulatory and professional bodies
The relevant regulatory body should be sent notice where the bankrupt is required, by statute, to be licensed to carry on an investment business (see Chapter 80, Annex B).
4.101 Members of Chartered Institute of Taxation or the Association of Tax Technicians
Where the bankrupt is a member of the Chartered Institute of Taxation or the Association of Tax Technicians, both of
12 Upper Belgrave Street
London
SW1X 8BB
Tel:020 7235 9381 (the Institute)
Tel: 020 7235 2544 (the Association)
notification of the order should be sent to those bodies.
4.102 Holder of a plant breeders’ right - Society of Plant Breeders
Notice should be sent to:
The British Society of Plant Breeders Ltd
Woolpack Chambers
Market Street
Ely
CB7 4ND
Tel: (01353) 653200
Fax: (01353) 661156
In cases involving corn and agricultural merchants or farmers licensed to deal in plant varieties (e.g. seed potatoes) where there may be a liability for royalties under the Plant Varieties and Seeds Act 1964, either as a provable claim or as an expense in the proceedings when seed, protected by a grant of Plan Breeders’ Rights, is realised.
Alternatively, the insolvent may own a plant breeder’s right which is a form of intellectual property and may be an asset.
See also Chapter 31.6, Part 2, paragraph 31.10.110.
4.103 Administration order is in force – county court
The county court may be able to provide details of the information relating to liabilities provided by the bankrupt in the application for the administration order. Although the information provided may not be current, it could be used as a comparison to details provided by the bankrupt at interview or to trace undisclosed assets [note 23]. See also Chapter 57 part 3 paragraph 57.61.
4.104 Supervisor of individual voluntary arrangement
The supervisor may be able to provide details of the bankrupt’s assets and liabilities. Likewise, if an insolvency practitioner was approached by the bankrupt to prepare for a voluntary arrangement but the arrangement was not finalised, the practitioner may have similar information on file. Although the information provided may not be current, it could be used as a comparison to details provided by the bankrupt at interview or to trace undisclosed assets.
The official receiver should request the supervisor to provide details of the Individual Voluntary Arrangement (IVA) proposal (as amended), a copy of the statement of affairs and details of the assets (both realised and unrealised) and any trusts that the supervisor considers have been established by the IVA following the decision in Re: N T Gallagher & Son Ltd [2002] All ER D396 [note 24] .
For further information see also Chapter 57, Part 1-Alternative individual procedures - Part 1 Individual voluntary arrangements and paragraph 31.10.135.
4.105 Trustee of a deed of arrangement
The trustee of the deed may be able to provide details of the bankrupt’s assets and liabilities. Although the information provided may not be current, it could be used as a comparison to details provided by the bankrupt at interview or to trace undisclosed assets [note 25].
See also Chapter 57, Part 2.
4.106 Trustee of previous bankruptcy
If the earlier bankruptcy was dealt with by another office, that office should be contacted to obtain any relevant information. Where an insolvency practitioner has acted as trustee, the trustee should also be informed of the bankruptcy order. There is a standard letter to send to the trustee if he/she is still in office at the date of the second bankruptcy [note 26]. See also Chapter 21 and paragraph 31.10.36.
4.107 Trustees of wills and settlements
Immediate notice of the bankruptcy must, in all cases, be given to trustee of wills and settlements under which the bankrupt has a reversionary or other interest, even though such interest appears to be mortgaged or charged to its full value. If the official receiver becomes trustee of the estate, notice of the bankruptcy order must be followed by a further notice sent in duplicate with, the trustees of the will being requested to return one copy receipted at the foot [note 27].
This action is to protect the trustee’s rights against mortgagees without notice of the bankruptcy and to protect a potential asset.
4.108 Holder of a vehicle operator’s licence or public service operating licence - Vehicle licensing authority and Vehicle Inspectorate
Notice should be sent to the local traffic area office where the bankrupt holds a vehicle operator's licence and/or public service operating licence.
The licences must be returned - see also Chapter 31.2, paragraph 31.2.46.To obtain details of the nearest local traffic area office, contact the Vehicle and Operator Services Agency (VOSA) on 0870 6060440. Further contact details are available on VOSA's website at http://www.dft.gov.uk/vosa/contactus/vosalocationsandofficesofthetrafficcommissioners/vosalocationsandofficesofthetrafficcommissioners.htm
Where the bankrupt was authorised to conduct MOT tests, all accountable documents, including MOT test certificates and documents recording the results of tests conducted within the preceding 18 months, should be returned to the traffic enforcement office. Details of the nearest local traffic enforcement office are available on VOSA’s website at http://www.dft.gov.uk/vosa/contactus/vosalocationsandofficesofthetrafficcommissioners/vosaenforcementoffices.htm
VOSA's correspondence address is:
Vehicle and Operator Services Agency
Berkeley House
Croydon Street
BRISTOL
BS5 0DA
4.109 Provision of information for creditors in other EU states (added May 2009)
As soon as insolvency proceedings are opened in a member state, the court of that state having jurisdiction, or an office holder appointed by it is under a duty to inform known creditors who have their habitual residences, domiciles or registered offices in other member states by individual notice of the circumstances and rules under which they may lodge claims [note 28].
There are also rules regarding language requirements of the notice [note 29].
There is a form available on document production [note 30] that the official receiver should send to all creditors in other member states at the initial notices stage. Currently, the document production form does not contain the title in all the official languages of the EU (as required by the Regulation) so, before issuing, official receivers should replace the produced front sheet with the one attached to Chapter 41 as Annex I.