Rejection of proof of debt

Published by a ½Û×ÓÊÓÆµ Restructuring & Insolvency expert
Practice notes

Rejection of proof of debt

Published by a ½Û×ÓÊÓÆµ Restructuring & Insolvency expert

Practice notes
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The rules applicable to proving a debt are found in the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, rr 14.2–14.25 regardless of whether the claim is made in administration, winding-up or bankruptcy.

Rejection of proof

Office-holders must endeavour to ascertain all the debts and liabilities of the insolvent and deal with all proofs of debt submitted to them by admitting them, rejecting them or calling for further evidence in support of them.

The office-holder may admit or reject a proof of debt for dividend (in whole or in part). In adjudicating whether a proof is admitted or rejected, the office-holder acts in a quasi-judicial capacity which is not different from that of the court itself. In deciding whether to go behind a judgment debt and, if so, in appraising the validity of a creditor's claim, neither the court nor the office-holder is limited to the evidence that was before the court when it gave its judgment.

The office-holder is expected to exercise their own judgment when determining a proof of debt and cannot simply

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Jurisdiction(s):
United Kingdom
Key definition:
Proof definition
What does Proof mean?

A hearing before a judge where evidence is led.

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