CHAPTER 43.0

February 2010

DEALING WITH THE AFFAIRS OF A FOREIGN NATIONAL BANKRUPT

43.0.1 Introduction

The chapter will concentrate on the practical aspects of dealing with the affairs of a foreign bankrupt where the requirements of the official receiver differ from those of a “normal”, English and Welsh, bankruptcy.  It should be noted, though, that some aspects of the information in the chapter will be of use when dealing with the affairs of a UK national bankrupt who has lived, or has affairs, overseas.

It tends to be the case that where the official receiver is dealing with a foreign insolvent it will be an individual rather than a company and, as a consequence, this chapter will concentrate on aspects of dealing with the affairs of a foreign bankrupt.  That said, many of the principles are equally applicable to liquidations, with appropriate modification.

Parts 3 and 4 of the chapter give an overview of the two main legal procedures available to the official receiver when dealing with the affairs of a foreign national, namely the EC Regulation on Insolvency Proceedings 2000 and the UNCITRAL Model Law on Cross Border Insolvency.  Full details of these procedures can be found in Chapters 41 and 42 respectively.

The chapter is divided into the following parts

Part 1 – Dealing with the affairs of a foreign national bankrupt – general (paragraphs 43.0.2 to 43.0.7)

Part 2 – Verifying a foreign national bankrupt’s centre of main interests (COMI) (paragraphs 43.0.8 to 43.0.22)

Part 3 – Practical assistance available under the EC Regulation on Insolvency Proceedings 2000 (paragraphs 43.0.23 to 43.0.32)

Part 4 – Practical assistance available under the UNCITRAL Model Law on Cross Border Insolvency (paragraphs 43.0.33 to 43.0.35)

Part 5 – Other practical assistance available (paragraphs 43.0.36 to 43.0.51)

Annex A – Letter to creditors seeking confirmation that bankrupt has informed them of his/her move to the UK

Annex B – Letter explaining why the bankruptcy order has been annulled.

Annex C - Letter explaining why insolvency proceedings have been opened in the UK

Annex D – Letter seeking co-operation of foreign insolvency administrator in respect of secondary proceedings

Annex E – Precedent application seeking assistance of court overseas

Country-specific guidance of a practical nature to assist official receivers when dealing with assets situated in other countries has been obtained for the following countries:

Germany (see Chapter 43.1). 

The following abbreviations are used in this chapter:

COMI – Centre of main interests

The Model Law – The UNCITRAL Model Law on Cross Border Insolvency

The EC Regulation – The EC Regulation on Insolvency Proceedings 2000

[On to Part 1 – Dealing with the affairs of a foreign national bankrupt – general]