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Section 305: Provable debt and proof of debt

Insolvency Act · PART IV: PROVISIONS APPLICABLE TO BANKRUPTCY AND WINDING UP

consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

305. Provable debt and proof of debt (1) A provable debt is a present, future, certain or contingent debt or liability which a creditor may prove in a bankruptcy or a winding up and that a debtor owes— (a) at the time of adjudication or in the case of a company on the commencement of the winding up; or I14 – 165 [Issue 3] Insolvency Act (b) after adjudication but before discharge or in the case of a company after the commencement of the winding up and before dissolution, by reason of an obligation incurred by the debtor before adjudication or dissolution as the case may be. (2) A fine, penalty, order for restitution, or other order for the payment of money that has been made following a conviction for an offence— (a) is not a provable debt; and (b) is not discharged when the debtor, in the case of bankruptcy, is discharged from bankruptcy. (3) A proof of debt is the document that a creditor submits, to the Official Receiver in the case of a bankruptcy or to a liquidator in the case of a company winding up, for the purpose of proving the debt. (4) A debt is proved when a decision is made by the Official Receiver or liquidator to admit the debt in accordance with the Second Schedule as being a debt provable in the bankruptcy.

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