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.
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.