How do I make a claim?
To make a claim you should ask the OR/IP (Official Receiver/Insolvency Practitioner) for a proof of debt form and complete and return it to the OR/IP.
The form is sent to you along with the notice to creditors. Remember to sign the form. The OR will not normally send an acknowledgement. The rights of a creditor who holds a fixed charge on assets (such as a mortgage) to sell the asset to recover their debt are not affected by insolvency. The chargeholder is the first to get paid when the asset is sold. Any surplus will be handed over to the trustee/liquidator. When all the assets available to unsecured creditors have been realised, the trustee will distribute the proceeds in a strict order of priority as follows:
- The fees and charges of the bankruptcy.
- Preferential debts, which include wages owed in the 4 months before the date of the insolvency order and contributions to occupational pension schemes.
- Any creditor holding a floating charge over an asset, such as a debenture.
- All unsecured creditors.
Therefore, unsecured creditors will usually only be paid when the fees and charges of the insolvency procedures and the claims of secured and preferential creditors have been paid.
If full repayment of claims is not possible, payments are made in proportion to the value of each claim.
If a dividend is to be paid, all creditors whose addresses are known will be notified. If you have not already submitted a proof of debt, this may be your last chance to do so. If you submit your proof of debt after the dividend has been declared, you may lose your right to share in the money available at that time.
How much you are paid will depend on the amount of money that can be realised and the number of claims. If there are few assets, you may not receive anything.
You can get a list of creditors from the OR/IP. The OR/IP is allowed to charge a statutory fee for this service. The list will show how much each creditor is owed. You also have a right to inspect the High Court file unless the High Court directs otherwise. If a statement of affairs has been submitted, you will be directed to the High Court file for details of creditors and their claims.
When paying a dividend, the OR/IP can reject the whole or part of a creditor's claim. The OR/IP must provide reasons for doing so in writing. If you are dissatisfied with the decision on your claim, you may apply to the court for the decision to be reversed or varied.
