Law

Insolvency Act 1986

United Kingdom · statute

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In force since 2026-10-01, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 666 provisions

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666 provisions

362 Gambling.

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363 General control of court.

(1) Every bankruptcy is under the general control of the court and, subject to the provisions in this Group of Parts, the court has full power to decide all questions of priorities and all other questions, whether of law or fact, arising in any bankruptcy. (2) Without prejudice to any other provision in this Group of Parts, an undischarged bankrupt or a discharged bankrupt whose estate is still being administered under Chapter IV of this Part shall do all such things as he may be directed to do by the court for the purposes of his bankruptcy or, as the case may be, the administration of that estate. (3) The official receiver or the trustee of a bankrupt’s estate may at any time apply to the court for a direction under subsection (2). (4) If any person without reasonable excuse fails to comply with any obligation imposed on him by subsection (2), he is guilty of a contempt of court and liable to be punished accordingly (in addition to any other punishment to which may be subject).

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364 Power of arrest.

(1) In the cases specified in the next subsection the court may cause a warrant to be issued to a constable or prescribed officer of the court— (a) for the arrest of a debtor to whom a bankruptcy application or a bankruptcy petition relates or of an undischarged bankrupt, or of a discharged bankrupt whose estate is still being administered under Chapter IV of this Part, and (b) for the seizure of any books, papers, records, money or goods in the possession of a person arrested under the warrant, and may authorise a person arrested under such a warrant to be kept in custody, and anything seized under such a warrant to be held, in accordance with the rules, until such time as the court may order. (2) The powers conferred by subsection (1) are exercisable in relation to a debtor or undischarged or discharged bankrupt if, at any time after the making of the bankruptcy application or the presentation of the bankruptcy petition relating to him or the making of the bankruptcy order against him, it appears to the court— (a) that there are reasonable grounds for believing that he has absconded, or is about to abscond, with a view to avoiding or delaying the payment of any of his debts or his appearance to a bankruptcy petition or to avoiding, delaying or disrupting any proceedings in bankruptcy against him or any examination of his affairs, or (b) that he is about to remove his goods with a view to preventing or delaying possession being taken of them by the official receiver or the trustee of his estate, or (c) that there are reasonable grounds for believing that he has concealed or destroyed, or is about to conceal or destroy, any of his goods or any books, papers or records which might be of use to his creditors in the course of his bankruptcy or in connection with the administration of his estate, or (d) that he has, without the leave of the official receiver or the trustee of his estate, removed any goods in his possession which exceed in value such sums as may be prescribed for the purposes of this paragraph or (e) that he has failed, without reasonable excuse, to attend any examination ordered by the court.

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365 Seizure of bankrupt’s property.

(1) At any time after a bankruptcy order has been made, the court may, on the application of the official receiver or the trustee of the bankrupt’s estate, issue a warrant authorising the person to whom it is directed to seize any property comprised in the bankrupt’s estate which is, or any books, papers or records relating to the bankrupt’s estate or affairs which are, in the possession or under the control of the bankrupt or any other person who is required to deliver the property, books, papers or records to the official receiver or trustee. (2) Any person executing a warrant under this section may, for the purpose of seizing any property comprised in the bankrupt’s estate or any books, papers or records relating to the bankrupt’s estate or affairs, break open any premises where the bankrupt or anything that may be seized under the warrant is or is believed to be and any receptacle of the bankrupt which contains or is believed to contain anything that may be so seized. (3) If, after a bankruptcy order has been made, the court is satisfied that any property comprised in the bankrupt’s estate is, or any books, papers or records relating to the bankrupt’s estate or affairs are, concealed in any premises not belonging to him, it may issue a warrant authorising any constable or prescribed officer of the court to search those premises for the property, books, papers or records. (4) A warrant under subsection (3) shall not be executed except in the prescribed manner and in accordance with its terms.

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366 Inquiry into bankrupt’s dealings and property.

(1) At any time after a bankruptcy order has been made the court may, on the application of the official receiver or the trustee of the bankrupt’s estate, summon to appear before it— (a) the bankrupt or the bankrupt’s spouse or former spouse or civil partner or former civil partner, (b) any person known or believed to have any property comprised in the bankrupt’s estate in his possession or to be indebted to the bankrupt, (c) any person appearing to the court to be able to give information concerning the bankrupt or the bankrupt’s dealings, affairs or property. The court may require any such person as is mentioned in paragraph (b) or (c) to submit a witness statement verified by a statement of truth to the court containing an account of his dealings with the bankrupt or to produce any documents in his possession or under his control relating to the bankrupt or the bankrupt’s dealings, affairs or property. (2) Without prejudice to section 364, the following applies in a case where— (a) a person without reasonable excuse fails to appear before the court when he is summoned to do so under this section, or (b) there are reasonable grounds for believing that a person has absconded, or is about to abscond, with a view to avoiding his appearance before the court under this section. (3) The court may, for the purpose of bringing that person and anything in his possession before the court, cause a warrant to be issued to a constable or prescribed officer of the court— (a) for the arrest of that person, and (b) for the seizure of any books, papers, records, money or goods in that person’s possession. (4) The court may authorise a person arrested under such a warrant to be kept in custody, and anything seized under such a warrant to be held, in accordance with the rules, until that person is brought before the court under the warrant or until such other times as the court may order.

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367 Court’s enforcement powers under s. 366.

(1) If it appears to the court, on consideration of any evidence obtained under section 366 or this section, that any person has in his possession any property comprised in the bankrupt’s estate, the court may, on the application of the official receiver or the trustee of the bankrupt’s estate, order that person to deliver the whole or any part of the property to the official receiver or the trustee at such time, in such manner and on such terms as the court thinks fit. (2) If it appears to the court, on consideration of any evidence obtained under section 366 or this section, that any person is indebted to the bankrupt, the court may, on the application of the official receiver or the trustee of the bankrupt’s estate, order that person to pay to the official receiver or trustee, at such time and in such manner as the court may direct, the whole or part of the amount due, whether in full discharge of the debt or otherwise as the court thinks fit. (3) The court may, if it thinks fit, order that any person who if within the jurisdiction of the court would be liable to be summoned to appear before it under section 366 shall be examined in any part of the United Kingdom where he may be for the time being, or in any place outside the United Kingdom. (4) Any person who appears or is brought before the court under section 366 or this section may be examined on oath, either orally or by interrogatories, concerning the bankrupt or the bankrupt’s dealings, affairs and property.

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368 Provision corresponding to s. 366, where interim receiver appointed.

Sections 366 and 367 apply where an interim receiver has been appointed under section 286 as they apply where a bankruptcy order has been made, as if— (a) references to the official receiver or the trustee were to the interim receiver, and (b) references to the bankrupt and to his estate were (respectively) to the debtor and his property.

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369 Order for production of documents by inland revenue.

(1) For the purposes of an examination under section 290 (public examination of bankrupt) or proceedings under sections 366 to 368, the court may, on the application of the official receiver or the trustee of the bankrupt’s estate, order an inland revenue official to produce to the court— (a) any return, account or accounts submitted (whether before or after the commencement of the bankruptcy) by the bankrupt to any inland revenue official, (b) any assessment or determination made (whether before or after the commencement of the bankruptcy) in relation to the bankrupt by any inland revenue official, or (c) any correspondence (whether before or after the commencement of the bankruptcy) between the bankrupt and any inland revenue official. (2) Where the court has made an order under subsection (1) for the purposes of any examination or proceedings, the court may, at any time after the document to which the order relates is produced to it, by order authorised the disclosure of the document, or of any part of its contents, to the official receiver, the trustee of the bankrupt’s estate or the bankrupt’s creditors. (3) The court shall not address an order under subsection (1) to an inland revenue official unless it is satisfied that that official is dealing, or has dealt, with the affairs of the bankrupt. (4) Where any document to which an order under subsection (1) relates is not in the possession of the official to whom the order is addressed, it is the duty of that official to take all reasonable steps to secure possession of it and, if he fails to do so, to report the reasons for his failure to the court. (5) Where any document to which an order under subsection (1) relates is in the possession of an inland revenue official other than the one to whom the order is addressed, it is the duty of the official in possession of the document, at the request of the official to whom the order is addressed, to deliver it to the official making the request. (6) In this section “inland revenue official” means any inspector or collector of taxes appointed by the Commissioners of Inland Revenue or any person appointed by the Commissioners to serve in any other capacity. (7) This section does not apply for the purposes of an examination under sections 366 and 367 which takes places by virtue of section 368 (interim receiver).

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370 Power to appoint special manager.

(1) The court may, on an application under this section, appoint any person to be the special manager— (a) of a bankrupt’s estate, or (b) of the business of an undischarged bankrupt, or (c) of the property or business of a debtor in whose case an interim receiver has been appointed under section 286. (2) An application under this section may be made by the interim receiver or the trustee of the bankrupt’s estate in any case where it appears to the interim receiver or trustee that the nature of the estate, property or business, or the interests of the creditors generally, require the appointment of another person to manage the estate, property or business. (3) A special manager appointed under this section has such powers as may be entrusted to him by the court. (4) The power of the court under subsection (3) to entrust powers to a special manager includes power to direct that any provision in ths Group of Parts that has effect in relation to the official receiver, interim receiver or trustee shall have the like effect in relation to the special manager for the purposes of the carrying out by the special manager of any of the functions of the official receiver, interim receiver or trustee. (5) A special manager appointed under this section shall— (a) give such security as may be prescribed, (b) prepare and keep such accounts as may be prescribed, and (c) produce those accounts in accordance with the rules to the Secretary of State or to such other persons as may be prescribed.

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371 Re-direction of bankrupt’s letters, etc.

(1) Where a bankruptcy order has been made, the court may from time to time, on the application of the official receiver or the trustee of the bankrupt’s estate, order a postal operator (within the meaning of Part 3 of the Postal Services Act 2011) to re-direct and send or deliver to the official receiver or trustee or otherwise any postal packet (within the meaning of that Act ) which would otherwise be sent or delivered by the operator concerned to the bankrupt at such place or places as may be specified in the order. (2) An order under this section has effect for such period, not exceeding 3 months, as may be specified in the order.

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372 Supplies of gas, water, electricity, etc.

(1) This section applies where on any day (“the relevant day”)— (a) a bankruptcy order is made against an individual or an interim receiver of an individual’s property is appointed, or (b) a voluntary arrangement proposed by an individual is approved under Part VIII, ... (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and in this section “the office-holder” means the official receiver, the trustee in bankruptcy, the interim receiver or the supervisor of the voluntary arrangement, as the case may be. (2) If a request falling within the next subsection is made for the giving after the relevant day of any of the supplies mentioned in subsection (4), the supplier— (a) may make it a condition of the giving of the supply that the office-holder personally guarantees the payment of any charges in respect of the supply, but (b) shall not make it a condition of the giving of the supply, or do anything which has the effect of making it a condition of the giving of the supply, that any outstanding charges in respect of a supply given to the individual before the relevant day are paid. (3) A request falls within this subsection if it is made— (a) by or with the concurrence of the office-holder, and (b) for the purposes of any business which is or has been carried on by the individual, by a firm or partnership of which the individual is or was a member, or by an agent or manager for the individual or for such a firm or partnership. (4) The supplies referred to in subsection (2) are— (a) a supply of gas by a gas supplier within the meaning of Part I of the Gas Act 1986; (aa) a supply of gas by a person within paragraph 1 of Schedule 2A to the Gas Act 1986 (supply by landlords etc.); (b) a supply of electricity by an electricity supplier within the meaning of Part I of the Electricity Act 1989; (ba) a supply of electricity by a class of person within Class A (small suppliers) or Class B (resale) of Schedule 4 to the Electricity (Class Exemptions from the Requirement for a Licence) Order 2001 (S.I. 2001/3270); (c) a supply of water by a water undertaker, (ca) a supply of water by a water supply licensee within the meaning of the Water Industry Act 1991; (cb) a supply of water by a person who has an interest in the premises to which the supply is given; (d) a supply of communications services by a provider of a public electronic communications service. (e) a supply of communications services by a person who carries on a business which includes giving such supplies; (f) a supply of goods or services mentioned in subsection (4A) by a person who carries on a business which includes giving such supplies, where the supply is for the purpose of enabling or facilitating anything to be done by electronic means. (4A) The goods and services referred to in subsection (4)(f) are— (a) point of sale terminals; (b) computer hardware and software; (c) information, advice and technical assistance in connection with the use of information technology; (d) data storage and processing; (e) website hosting. (5) The following applies to expressions used in subsection (4)— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) “communications services” do not include electronic communications services to the extent that they are used to broadcast or otherwise transmit programme services (within the meaning of the Communications Act 2003).

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372A Further protection of essential supplies

(1) An insolvency-related term of a contract for the supply of essential goods or services to an individual ceases to have effect if— (a) a voluntary arrangement proposed by the individual is approved under Part 8, and (b) the supply is for the purpose of a business which is or has been carried on by the individual, by a firm or partnership of which the individual is or was a member, or by an agent or manager for the individual or for such a firm or partnership. (2) An insolvency-related term of a contract does not cease to have effect by virtue of subsection (1) to the extent that— (a) it provides for the contract or the supply to terminate, or any other thing to take place, because the individual becomes subject to an insolvency procedure other than a voluntary arrangement; (b) it entitles a supplier to terminate the contract or the supply, or do any other thing, because the individual becomes subject to an insolvency procedure other than a voluntary arrangement; or (c) it entitles a supplier to terminate the contract or the supply because of an event that occurs, or may occur, after the voluntary arrangement proposed by the individual is approved. (3) Where an insolvency-related term of a contract ceases to have effect under this section the supplier may— (a) terminate the contract, if the condition in subsection (4) is met; (b) terminate the supply, if the condition in subsection (5) is met. (4) The condition in this subsection is that— (a) the supervisor of the voluntary arrangement consents to the termination of the contract, (b) the court grants permission for the termination of the contract, or (c) any charges in respect of the supply that are incurred after the voluntary arrangement is approved are not paid within the period of 28 days beginning with the day on which payment is due. The court may grant permission under paragraph (b) only if satisfied that the continuation of the contract would cause the supplier hardship. (5) The condition in this subsection is that— (a) the supplier gives written notice to the supervisor of the voluntary arrangement that the supply will be terminated unless the supervisor personally guarantees the payment of any charges in respect of the continuation of the supply after the arrangement was approved, and (b) the supervisor does not give that guarantee within the period of 14 days beginning with the day the notice is received. (6) For the purposes of securing that the interests of suppliers are protected, where— (a) an insolvency-related term of a contract (the “original term”) ceases to have effect by virtue of subsection (1), and (b) a subsequent voluntary arrangement proposed by the individual is approved, the contract is treated for the purposes of subsections (1) to (5) as if, immediately before the subsequent voluntary arrangement proposed by the individual is approved, it included an insolvency-related term identical to the original term. (7) A contract for the supply of essential goods or services is a contract for a supply mentioned in section 372(4). (8) An insolvency-related term of a contract for the supply of essential goods or services to an individual is a provision of the contract under which— (a) the contract or the supply would terminate, or any other thing would take place, because the voluntary arrangement proposed by the individual is approved, (b) the supplier would be entitled to terminate the contract or the supply, or to do any other thing, because the voluntary arrangement proposed by the individual is approved, or (c) the supplier would be entitled to terminate the contract or the supply because of an event that occurred before the voluntary arrangement proposed by the individual is approved. (9) Subsection (1) does not have effect in relation to a contract entered into before 1st October 2015.

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373 Jurisdiction in relation to insolvent individuals.

(1) The High Court and the county court have jurisdiction throughout England and Wales for the purposes of the Parts in this Group. (2) For the purposes of those Parts, the county court has, in addition to its ordinary jurisdiction, all the powers and jurisdiction of the High Court; and the orders of the court may be enforced accordingly in the prescribed manner. (3) Jurisdiction for the purposes of those Parts is exercised— (a) by the High Court or the county court in relation to the proceedings, which, in accordance with the rules, are allocated to the London insolvency district, and (b) by the county court in relation to the proceedings which are so allocated to any other insolvency district. (4) Subsection (3) is without prejudice to the transfer of proceedings from one court to another in the manner prescribed by the rules; and nothing in that subsection invalidates any proceedings on the grounds that they were initiated or continued in the wrong court.

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374 Insolvency districts.

(1) The Lord Chancellor may , with the concurrence of the Lord Chief Justice, by order designate the areas which are for the time being to be comprised, for the purposes of the Parts in this Group, in the London insolvency district and the insolvency district , or districts, of the county court. (2) An order under this section may contain such incidental, supplemental and transitional provisions as may appear to the Lord Chancellor and the Lord Chief Justice necessary or expedient. (3) An order under this section shall be made by statutory instrument and, after being made, shall be laid before each House of Parliament. (4) Subject to any order under this section— (a) the district which, immediately before the appointed day, is the London bankruptcy district becomes, on that day, the London insolvency district; (b) any district which immediately before that day is the bankruptcy district of a county court becomes, on that day, the insolvency district of that court, and (c) any county court which immediately before that day is excluded from having jurisdiction in bankruptcy is excluded, on and after that day, from having jurisdiction for the purposes of the Parts in this Group. (5) The Lord Chief Justice may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section.

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375 Appeals etc. from courts exercising insolvency jurisdiction.

(1) Every court having jurisdiction for the purposes of the Parts in this Group may review, rescind or vary any order made by it in the exercise of that jurisdiction. (2) An appeal from a decision made in the exercise of jurisdiction for the purposes of those Parts by the county court or by an insolvency and companies court judge lies to a single judge of the High Court; and an appeal from a decision of that judge on such an appeal lies . . . to the Court of Appeal. (3) The county court is not, in the exercise of its jurisdiction for the purposes of those Parts, to be subject to be restrained by the order of any other court, and no appeal lies from its decision in the exercise of that jurisdiction except as provided by this section.

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376 Time-limits.

Where by any provision in this Group of Parts or by the rules the time for doing anything (including anything in relation to a bankruptcy application) is limited, the court may extend the time, either before or after it has expired, on such terms, if any, as it thinks fit.

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377 Formal defects.

The acts of a person as the trustee of a bankrupt’s estate or as a special manager, and the acts of the creditors’ committee established for any bankruptcy, are valid notwithstanding any defect in the appointment, election or qualifications of the trustee or manager or, as the case may be, of any member of the committee.

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378 Exemption from stamp duty.

Stamp duty shall not be charged on— (a) any document, being a deed, conveyance, assignment, surrender, admission or other assurance relating solely to property which is comprised in a bankrupt’s estate and which, after the execution of that document, is or remains at law or in equity the property of the bankrupt or of the trustee of that estate, (b) any writ, order, certificate or other instrument relating solely to the property of a bankrupt or to any bankruptcy proceedings.

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379 Annual report.

As soon as practicable after the end of 1986 and each subsequent calendar year, the Secretary of State shall prepare and lay before each House of Parliament a report about the operation during that year of so much of this Act as is comprised in this Group of Parts....

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379ZA Creditors' decisions: general

(1) This section applies where, for the purposes of this Group of Parts, a person (“P”) seeks a decision from an individual's creditors about any matter. (2) The decision may be made by any creditors' decision procedure P thinks fit, except that it may not be made by a creditors' meeting unless subsection (3) applies. (3) This subsection applies if at least the minimum number of creditors request in writing that the decision be made by a creditors' meeting. (4) If subsection (3) applies, P must summon a creditors' meeting. (5) Subsection (2) is subject to any provision of this Act, the rules or any other legislation, or any order of the court— (a) requiring a decision to be made, or prohibiting a decision from being made, by a particular creditors' decision procedure (other than a creditors' meeting); (b) permitting or requiring a decision to be made by a creditors' meeting. (6) Section 379ZB provides that in certain cases the deemed consent procedure may be used instead of a creditors' decision procedure. (7) For the purposes of subsection (3) the “minimum number” of creditors is any of the following— (a) 10% in value of the creditors; (b) 10% in number of the creditors; (c) 10 creditors. (8) The references in subsection (7) to creditors are to creditors of any class, even where a decision is sought only from creditors of a particular class. (9) In this section references to a meeting are to a meeting where the creditors are invited to be present together at the same place (whether or not it is possible to attend the meeting without being present at that place). (10) Except as provided by subsection (8), references in this section to creditors include creditors of a particular class. (11) In this Group of Parts “creditors' decision procedure” means a procedure prescribed or authorised under paragraph 11A of Schedule 9.

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379ZB Deemed consent procedure

(1) The deemed consent procedure may be used instead of a creditors' decision procedure where an individual's creditors are to make a decision about any matter, unless— (a) a decision about the matter is required by virtue of this Act, the rules or any other legislation to be made by a creditors' decision procedure, or (b) the court orders that a decision about the matter is to be made by a creditors' decision procedure. (2) If the rules provide for an individual's creditors to make a decision about the remuneration of any person, they must provide that the decision is to be made by a creditors' decision procedure. (3) The deemed consent procedure is that the relevant creditors (other than opted-out creditors) are given notice of— (a) the matter about which the creditors are to make a decision, (b) the decision the person giving the notice proposes should be made (the “proposed decision”), (c) the effect of subsections (4) and (5), and (d) the procedure for objecting to the proposed decision. (4) If less than the appropriate number of relevant creditors object to the proposed decision in accordance with the procedure set out in the notice, the creditors are to be treated as having made the proposed decision. (5) Otherwise— (a) the creditors are to be treated as not having made a decision about the matter in question, and (b) if a decision about that matter is again sought from the creditors, it must be sought using a creditors' decision procedure. (6) For the purposes of subsection (4) the “appropriate number” of relevant creditors is 10% in value of those creditors. (7) “Relevant creditors” means the creditors who, if the decision were to be made by a creditors' decision procedure, would be entitled to vote in the procedure. (8) In this section references to creditors include creditors of a particular class. (9) The rules may make further provision about the deemed consent procedure.

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379ZC Power to amend sections 379ZA and 379ZB

(1) The Secretary of State may by regulations amend section 379ZA so as to change the definition of the minimum number of creditors. (2) The Secretary of State may by regulations amend section 379ZB so as to change the definition of the appropriate number of relevant creditors. (3) Regulations under this section may define the minimum number or the appropriate number by reference to any one or more of— (a) a proportion in value, (b) a proportion in number, (c) an absolute number, and the definition may include alternative, cumulative or relative requirements. (4) Regulations under subsection (1) may define the minimum number of creditors by reference to all creditors, or by reference to creditors of a particular description. (5) Regulations under this section may make provision that will result in section 379ZA or 379ZB having different definitions for different cases, including for different kinds of decisions. (6) Regulations under this section may make transitional provision. (7) The power of the Secretary of State to make regulations under this section is exercisable by statutory instrument. (8) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

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379A Remote attendance at meetings

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379B Use of websites

(1) This section applies where— (a) a bankruptcy order is made against an individual or an interim receiver of an individual's property is appointed, or (b) a voluntary arrangement in relation to an individual is proposed or is approved under Part 8, and “the office-holder” means the official receiver, the trustee in bankruptcy, the interim receiver, the nominee or the supervisor of the voluntary arrangement, as the case may be. (2) Where any provision of this Act or the rules requires the office-holder to give, deliver, furnish or send a notice or other document or information to any person, that requirement is satisfied by making the notice, document or information available on a website— (a) in accordance with the rules, and (b) in such circumstances as may be prescribed.

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379C Creditors' ability to opt out of receiving certain notices

(1) Any provision of the rules which requires an office-holder to give a notice to creditors of an individual does not apply, in circumstances prescribed by the rules, in relation to opted-out creditors. (2) Subsection (1)— (a) does not apply in relation to a notice of a distribution or proposed distribution to creditors; (b) is subject to any order of the court requiring a notice to be given to all creditors (or all creditors of a particular category). (3) Except as provided by the rules, a creditor may participate and vote in a creditors' decision procedure or a deemed consent procedure even though, by virtue of being an opted-out creditor, the creditor does not receive notice of it. (4) In this section— “give” includes deliver, furnish or send; “notice” includes any document or information in any other form; “office-holder”, in relation to an individual, means— where a bankruptcy order is made against the individual, the official receiver or the trustee in bankruptcy; where an interim receiver of the individual's property is appointed, the interim receiver; the supervisor of a voluntary arrangement approved under Part 8 in relation to the individual.

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380 Introductory.

The next five sections have effect for the interpretation of the provisions of this Act which are comprised in this Group of Parts; and where a definition is provided for a particular expression, it applies except so far as the context otherwise requires.

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381 “Bankrupt” and associated terminology.

(1) “Bankrupt” means an individual who has been made bankrupt and, in relation to a bankruptcy order, it means the individual made bankrupt by that order. (1A) Bankruptcy application” means an application to an adjudicator for a bankruptcy order. (2) “Bankruptcy order” means an order making an individual bankrupt. (3) “Bankruptcy petition” means a petition to the court for a bankruptcy order.

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382 “Bankruptcy debt” , “liability”

(1) “Bankruptcy debt”, in relation to a bankrupt, means (subject to the next subsection) any of the following— (a) any debt or liability to which he is subject at the commencement of the bankruptcy, (b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy, (c) any amount specified in pursuance of section 39(3)(c) of the Powers of Criminal Courts Act 1973 in any criminal bankruptcy order made against him before the commencement of the bankruptcy, and (d) any interest provable as mentioned in section 322(2) in Chapter IV of Part IX. (2) In determining for the purposes of any provision in this Group of Parts whether any liability in tort is a bankruptcy debt, the bankrupt is deemed to become subject to that liability by reason of an obligation incurred at the time when the cause of action accrued. (3) For the purposes of references in this Group of Parts to a debt or liability, it is immaterial whether the debt or liability is present or future, whether it is certain or contingent or whether its amount is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion; and references in this Group of Parts to owing a debt are to be read accordingly. (4) In this Group of Parts, except in so far as the context otherwise requires, “liability” means (subject to subsection (3) above) a liability to pay money or money’s worth, including any liability under an enactment, any liability for breach of trust, any liability in contract, tort or bailment and any liability arising out of an obligation to make restitution. (5) Liability under the Child Support Act 1991 to pay child support maintenance to any person is not a debt or liability for the purposes of Part 8.

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383 “Creditor”, “security”, etc.

(1) “Creditor”— (a) in relation to a bankrupt, means a person to whom any of the bankruptcy debts is owed (being, in the case of an amount falling within paragraph (c) of the definition in section 382(1) or “bankruptcy debt”, the person in respect of whom that amount is specified in the criminal bankruptcy order in question), and (b) in relation to an individual to whom a bankruptcy application or bankruptcy petition relates, means a person who would be a creditor in the bankruptcy if a bankruptcy order were made on that application or petition. (2) Subject to the next two subsections and any provision of the rules requiring a creditor to give up his security for the purposes of proving a debt, a debt is secured for the purposes of this Group of Parts to the extent that the person to whom the debt is owed holds any security for the debt (whether a mortgage, charge, lien or other security) over any property of the person by whom the debt is owed. (3) Where a statement such as is mentioned in section 269(1)(a) in Chapter I of Part IX has been made by a secured creditor for the purposes of any bankruptcy petition and a bankruptcy order is subsequently made on that petition, the creditor is deemed for the purposes of the Parts in this Group to have given up the security specified in the statement. (4) In subsection (2) the reference to a security does not include a lien on books, papers or other records, except to the extent that they consist of documents which give a title to property and are held as such.

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383A “Opted-out creditor”

(1) For the purposes of this Group of Parts “opted-out creditor” in relation to an office-holder for an individual means a person who— (a) is a creditor of the individual, and (b) in accordance with the rules has elected (or is deemed to have elected) to be (and not to cease to be) an opted-out creditor in relation to the office-holder. (2) In this section, “office-holder”, in relation to an individual, means— (a) where a bankruptcy order is made against the individual, the official receiver or the trustee in bankruptcy; (b) where an interim receiver of the individual's property is appointed, the interim receiver; (c) the supervisor of a voluntary arrangement approved under Part 8 in relation to the individual.

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384 “Prescribed” and “the rules”.

(1) Subject to the next subsection and sections 342C(7) and 342F(9) in Chapter V of Part IX, “prescribed” means prescribed by the rules; and “the rules” means rules made under section 412 in Part XV. (2) References in this Group of Parts to the amount prescribed for the purposes of any of the following provisions— section 251S(4); ... section 313A; section 346(3); section 354(1) and (2); section 358; section 360(1); section 361(2); . . . section 364(2)(d), paragraphs 6 to 8 of Schedule 4ZA, and references in those provisions to the prescribed amount are to be read in accordance with section 418 in Part XV and orders made under that section.

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385 Miscellaneous definitions.

(1) The following definitions have effect— “ adjudicator ” means a person appointed by the Secretary of State under section 398A; “the court”, in relation to any matter, means the court to which, in accordance with section 373 in Part X and the rules, proceedings with respect to that matter are allocated or transferred; “ creditors' decision procedure ” has the meaning given by section 379ZA(11); “creditor’s petition” means a bankruptcy petition under section 264(1)(a); “criminal bankruptcy order” means an order under section 39(1) of the Powers of Criminal Courts Act 1973; “debt” is to be construed in accordance with section 382(3); “the debtor”— in relation to a debt relief order or an application for such an order, has the same meaning as in Part 7A, in relation to a proposal for the purposes of Part VIII, means the individual making or intending to make that proposal, and in relation to a bankruptcy application or a bankruptcy petition, means the individual to whom the application or petition relates; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “debt relief order” means an order made by the official receiver under Part 7A; “deemed consent procedure” means the deemed consent procedure provided for by section 379ZB; “determination period” has the meaning given in section 263K(4); “dwelling house” includes any building or part of a building which is occupied as a dwelling and any yard, garden, garage or outhouse belonging to the dwelling house and occupied with it; “estate”, in relation to a bankrupt is to be construed in accordance with section 283 in Chapter II of Part IX; “family”, in relation to a bankrupt, means the persons (if any) who are living with him and are dependent on him; “insolvency administration order” means an order for the administration in bankruptcy of the insolvent estate of a deceased debtor (being an individual at the date of his death); “insolvency administration petition” means a petition for an insolvency administration order; “secured” and related expressions are to be construed in accordance with section 383; “the Rules” means the Insolvency (England and Wales) Rules 2016 and “the trustee”, in relation to a bankruptcy and the bankrupt, means the trustee of the bankrupt’s estate. (2) References in this Group of Parts to a person’s affairs include his business, if any.

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386 Categories of preferential debts.

(1) A reference in this Act to the preferential debts of a company or an individual is to the debts listed in Schedule 6 to this Act (contributions to occupational pension schemes; remuneration, &c. of employees; levies on coal and steel production ; debts owed to the Financial Services Compensation Scheme ; deposits covered by Financial Services Compensation Scheme ; other deposits ; certain HMRC debts); and references to preferential creditors are to be read accordingly. (1A) A reference in this Act to the “ordinary preferential debts” of a company or an individual is to the preferential debts listed in any of paragraphs 8 to 15B of Schedule 6 to this Act. (1B) A reference in this Act to the “secondary preferential debts” of a company or an individual is to the preferential debts listed in paragraph 15BA , 15BB or 15D of Schedule 6 to this Act. (2) In Schedule 6 “the debtor” means the company or the individual concerned. (3) Schedule 6 is to be read with Schedule 4 to the Pension Schemes Act 1993 (occupational pension scheme contributions).

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387 “The relevant date”.

(1) This section explains references in Schedule 6 to the relevant date (being the date which determines the existence and amount of a preferential debt). (2) For the purposes of section 4 in Part I (consideration of company voluntary arrangement), the relevant date in relation to a company which is not being wound up is— (a) if the company is in administration, the date on which it entered administration, and (b) if the company is not in administration, the date on which the voluntary arrangement takes effect. (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) In relation to a company which is being wound up, the following applies— (a) if the winding up is by the court, and the winding-up order was made immediately upon the discharge of an administration order, the relevant date is the date on which the company entered administration; (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (ab) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) if the case does not fall within paragraph (a) ... and the company— (i) is being wound up by the court, and (ii) had not commenced to be wound up voluntarily before the date of the making of the winding-up order, the relevant date is the date of the appointment (or first appointment) of a provisional liquidator or, if no such appointment has been made, the date of the winding-up order; (ba) if the case does not fall within paragraph (a) ... or (b) and the company is being wound up following administration pursuant to paragraph 83 of Schedule B1, the relevant date is the date on which the company entered administration; (c) if the case does not fall within paragraph (a) ..., (b) or (ba), the relevant date is the date of the passing of the resolution for the winding up of the company. (3A) In relation to a company which is in administration (and to which no other provision of this section applies) the relevant date is the date on which the company enters administration. (4) In relation to a company in receivership (where section 40 or, as the case may be, section 59 applies), the relevant date is— (a) in England and Wales, the date of the appointment of the receiver by debenture-holders, and (b) in Scotland, the date of the appointment of the receiver under section 53(6) or (as the case may be) 54(5). (5) For the purposes of section 258 in Part VIII (individual voluntary arrangements), the relevant date is, in relation to a debtor who is not an undischarged bankrupt (a) where an interim order has been made under section 252 with respect to his proposal, the date of that order, and (b) in any other case, the date on which the voluntary arrangement takes effect. (6) In relation to a bankrupt, the following applies— (a) where at the time the bankruptcy order was made there was an interim receiver appointed under section 286, the relevant date is the date on which the interim receiver was first appointed after the making of the bankruptcy application or (as the case may be) the presentation of the bankruptcy petition; (b) otherwise, the relevant date is the date of the making of the bankruptcy order.

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387A Financial institutions and their non-preferential debts

(1) In this Act “relevant financial institution” means any of the following— (a) a credit institution, (b) an investment firm, (c) a financial holding company, (d) a mixed financial holding company, (da) an investment holding company, (e) a financial institution which is— (i) a subsidiary of an entity referred to in paragraphs (a) to (da), and (ii) covered by the supervision of that entity on a consolidated basis by the Financial Conduct Authority in accordance with Part 9C rules or by the Prudential Regulation Authority in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms or CRR rules, or, (f) a mixed-activity holding company. (2) The definitions in Article 4 of Regulation (EU) No. 575/2013 apply for the purposes of subsection (1) , except for the definitions of “consolidated basis” and “consolidated situation”. (2A) For the purposes of subsection (1)— “on a consolidated basis” means on the basis of the consolidated situation; “consolidated situation” means the situation that results from an entity being treated, for the purposes of Part 9C rules, Regulation (EU) 575/2013 or CRR rules (as appropriate), as if that entity and one or more other entities formed a single entity; “CRR rules” has the meaning given in section 144A of the Financial Services and Markets Act 2000; “Part 9C rules” has the meaning given in section 143F of the Financial Services and Markets Act 2000. (3) In this Act, in relation to a relevant financial institution— (a) “ordinary non-preferential debts” means non-preferential debts which are neither secondary non-preferential debts nor tertiary non-preferential debts; (b) “secondary non-preferential debts” means non-preferential debts issued under an instrument where— (i) the original contractual maturity of the instrument is of at least one year, (ii) the instrument is not a derivative and contains no embedded derivative, and (iii) the relevant contractual documentation and where applicable the prospectus related to the issue of the debts explain the priority of the debts under this Act, and (c) “tertiary non-preferential debts” means all subordinated debts, including (but not limited to) debts under Common Equity Tier 1 instruments, Additional Tier 1 instruments and Tier 2 instruments (all within the meaning of Part 1 of the Banking Act 2009). (4) In subsection (3)(b), “derivative” has the same meaning as in Article 2(5) of Regulation (EU) No 648/2012. (5) For the purposes of subsection (3)(b)(ii) an instrument does not contain an embedded derivative merely because— (a) it provides for a variable interest rate derived from a broadly used reference rate, or (b) it is not denominated in the domestic currency of the person issuing the debt (provided that the principal, repayment and interest are denominated in the same currency).

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388 Meaning of “act as insolvency practitioner”

(1) A person acts as an insolvency practitioner in relation to a company by acting— (a) as its liquidator, provisional liquidator, administrator , administrative receiver or monitor, or (b) where a voluntary arrangement in relation to the company is proposed or approved under Part I, as nominee or supervisor (2) A person acts as an insolvency practitioner in relation to an individual by acting— (a) as his trustee in bankruptcy or interim receiver of his property or as trustee (or interim trustee) in the sequestration of his estate; or (b) as trustee under a deed which is ..., in Scotland, a trust deed for his creditor; or (c) where a voluntary arrangement in relation to the individual is proposed or approved under Part VIII, as nominee or supervisor (d) in the case of a deceased individual to the administration of whose estate this section applies by virtue of an order under section 421 (application of provisions of this Act to insolvent estates of deceased persons), as administrator of that estate. (2A) A person acts as an insolvency practitioner in relation to an insolvent partnership by acting— (a) as its liquidator, provisional liquidator or administrator, or (b) as trustee of the partnership under article 11 of the Insolvent Partnerships Order 1994, or (c) where a voluntary arrangement in relation to the insolvent partnership is proposed or approved under Part I of the Act, as nominee or supervisor. (2B) In relation to a voluntary arrangement proposed under Part I or VIII, a person acts as nominee if he performs any of the functions conferred on nominees under the Part in question. (3) References in this section to an individual include, except in so far as the context otherwise requires, references . . . to any debtor within the meaning of the Bankruptcy (Scotland) Act 2016. (4) In this section— “administrative receiver” has the meaning given by section 251 in Part VII; “company” means— a company registered under the Companies Act 2006 in England and Wales or Scotland, or a company that may be wound up under Part 5 of this Act (unregistered companies). “monitor” has the same meaning as in Part A1 (moratorium); “sequestration” means sequestration under the Bankruptcy (Scotland) Act 2016 (5) Nothing in this section applies to anything done by— (a) the official receiver; or (b) the Accountant in Bankruptcy (within the meaning of the Bankruptcy (Scotland) Act 2016). (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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389 Acting without qualification an offence.

(1) A person who acts as an insolvency practitioner in relation to a company or an individual at a time when he is not qualified to do so is liable to imprisonment or a fine, or to both. (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) This section does not apply to the official receiver or the Accountant in Bankruptcy (within the meaning of the Bankruptcy (Scotland) Act 2016)..

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389A Authorisation of nominees and supervisors.

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389B Official receiver as nominee or supervisor

(1) The official receiver is authorised to act as nominee or supervisor in relation to a voluntary arrangement approved under Part VIII provided that the debtor is an undischarged bankrupt when the arrangement is proposed. (2) The Secretary of State may by order repeal the proviso in subsection (1). (3) An order under subsection (2)— (a) must be made by statutory instrument, and (b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

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390 Persons not qualified to act as insolvency practitioners.

(1) A person who is not an individual is not qualified to act as an insolvency practitioner. (2) A person is not qualified to act as an insolvency practitioner at any time unless at that time the person is appropriately authorised under section 390A. (3) A person is not qualified to act as an insolvency practitioner in relation to another person at any time unless— (a) there is in force at that time security or, in Scotland, caution for the proper performance of his functions, and (b) that security or caution meets the prescribed requirements with respect to his so acting in relation to that other person. (4) A person is not qualified to act as an insolvency practitioner at any time if at that time— (a) he has been made bankrupt under this Act or the Insolvency (Northern Ireland) Order 1989 or sequestration of his estate has been awarded and (in either case) he has not been discharged, (aa) a moratorium period under a debt relief order under this Act or the Insolvency (Northern Ireland) Order 1989 applies in relation of him, (b) he is subject to a disqualification order made or a disqualification undertaking accepted under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002, (c) he is a patient within the meaning of . . . section 329(1) of the Mental Health (Care and Treatment)(Scotland) Act 2003or has had a guardian appointed to him under the Adults with Incapacity (Scotland) Act 2000 (asp 4)., or (d) he lacks capacity (within the meaning of the Mental Capacity Act 2005) to act as an insolvency practitioner. (5) A person is not qualified to act as an insolvency practitioner while there is in force in respect of that person— (a) a bankruptcy restrictions order under this Act, the Bankruptcy (Scotland) Act 1985 or the Bankruptcy (Scotland) Act 2016 or the Insolvency (Northern Ireland) Order 1989, or (b) a debt relief restrictions order under this Act or that Order.

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