Introduction
i Why has the procedure been introduced?
The revised procedure is designed to cut down on administration, remove duplication and adopt a more risk-friendly approach to dealing with debtor’s petition cases .The initial contact process aims to obtain the essential information in debtor’s petition cases, pending the arrival and initial review of the debtor’s statement of affairs. The revised procedure will replace initial enquiries in these cases and introduces three types of debtor petition case and revised time guidelines for completion of pre-Case Assessment Record (CAR) work. Mandatory forms have been introduced and there must be no use of locally devised forms.
ii What information is needed?
On the making of the bankruptcy order the bankrupt will be asked by the case officer for essential information as detailed in the initial contact form (ICON). The questions are limited to establishing :
contact details to enable an interview to be arranged if required and any special needs which should be taken into account;
whether the bankrupt is trading or has recently ceased trading? If the answer is ‘yes’ consideration must be given to passing the case immediately to a B3 examiner who will record further questions and answers relating to the bankrupt’s trading details;
whether there are any assets in jeopardy that need to be dealt with within the next 7 days;
whether there are any other urgent matters that require urgent attention; and
bank account/building society details so that consideration can be given to the bankrupt having access to funds if the account is used for salary purposes.
There is also a reminder, at this stage, to deal with the issue of ethnic monitoring and the leaflets that need to be sent/given to the bankrupt.
N.B. If the statement of affairs has been completed using the online forms service , the court should be asked for the 3 to10 digit reference number on the top right of the form. Case information is then automatically downloaded onto LOIS. (See LOIS Workbook, Online Forms Service and LOIS)
iii Do I need to take any further action?
The completed ICON and statement of affairs will be passed to the examiner for review. The statement of affairs must be clearly marked with the date it is received in the office. However, the following notices/matters must still be generated or actioned on notification of the bankruptcy order, regardless of whether the statement of affairs has been received, within the existing timescales;
Gazette and local advertisement
Notice to National Information Centre For Enforcement (Nicesheriffs) and the district judge of the county court for all areas in which the bankrupt/partner is known to have carried on business or resided in the last 6 months.
Notice to HM Land Charges Department, Plymouth
Carry out Central Index check and note form ICON
Input the case information, including trading information which is currently available, on LOIS (CA03).
Official receivers should rely on the information in the bankruptcy description and the form ICON where one has been completed.
Notifications to any other parties such as landlords, banks, etc should be sent as necessary according to the circumstances of the case. However staff should not be seeking additional information regarding the details of such parties before the statement of affairs is received into the office unless there is a known asset in jeopardy or it is known that there would be serious financial or reputational loss to The Service by not sending such notice(s) in advance. If in doubt refer the matter to the examiner.
For further information see Case Help Manual part : Initial Notices and Letters and Technical Manual chapter 4
iv What is the initial review?
Within two working days of the receipt of the statement of affairs the examiner will review the case papers, which includes the completed ICON, and decide which ‘type’ of case it is (see paragraph v below). Instructions will be given to the case officer and the case will proceed as detailed below, according to ‘type’. This initial review will also identify any matters for urgent action that the use of the ICON failed to draw out and which need to be dealt with immediately. As part of the review the examiner should identify the additional information that he/she requires in order to either make recommendations for any further investigation, draw conclusions as to the reason(s) for the insolvency, to draft up instructions to case officers as to the treatment of assets or to determine whether an income payments agreement (IPA) should be sought. The examiner will input details of the case type onto LOIS via Screen 85 and the case type will then be displayed on LOIS Screen 8.
It is to be noted that in some offices the bankrupt will be seen either at court or at the office immediately after the making of the order and the examiner will then have completed the initial review.
v What types of debtor’s petition cases are there?
There are three types of debtor petition case which are:
type 0 – no interview
type 1 - short interview ( up to one hour)
type 2 - all other cases
However, in all types the following must be sent/actioned within 2 working days of the statement of affairs being reviewed:
The appropriate letter and enclosures to bankrupt/partners and noted on LOIS (CA24)
Notices to other government departments
Trade classifications entered on LOIS (CA03)
Where an interview is required, the appropriate appointment letter should be sent and diarised on the office Interview Diary. The decision as to which letter to send depends on the type and circumstances of the case (see paragraphs vi-viii below).
For further information on appointment letters see Case Help Manual part : Initial Notices and Letters.
vi Debtor’s petition type 0
In a type 0 case no interview need take place. On reviewing the case papers the examiner has decided that there is no more essential information to be gathered and that the necessary recommendations can be made and instructions given without any need to contact the bankrupt.
Where an interview does not take place, examiners must ensure that where assets are to be realised or exempted the appropriate letter is sent by either the examiner or the case officer, depending on office policy. This will ensure that the bankrupt is aware in a timely fashion of how the bankruptcy will affect certain assets. For example, if a motor vehicle is to be exempted the examiner is still required to ascertain the reason for exemption and this may result in some cases, which otherwise would have been type 0 cases, becoming type 1 cases, albeit the contact time with the bankrupt will be brief. The same principle also applies when dealing with the IPA assessment. Likewise there must be sufficient detail relating to liabilities within the case papers, to enable notices/report to creditors (RTCs) etc. to be sent to creditors. In type 0 cases information should only be sought from the bankrupt on the identified matter(s).
vii Debtor’s petition type 1
Unless it is clear from the review that a case will be a type 0 or 2, the examiner will view it as a type 1. In type1 cases it is envisaged that the interview will normally take no longer than an hour either by telephone or face to face. A telephone/court interview record form (TCIR) must be used in order to focus on the key issues and can also be completed as part of the initial review in order to assess where there are ‘gaps’ in the key information. The TCIR will serve as a record of the further information obtained covering the areas of service of form NTB2, assets, income payments agreement assessment, reason for the insolvency, other relevant information, documents to be provided within 7 days and the examiners evaluation of the case.
Based on this information the examiner will give instructions to the case officer to continue with the administration of the case via LOIS (CA08).
viii Debtor’s petition type 2
A type 2 case will include all trading cases, second time (or more) bankrupts and any other case which the examiner believes is likely to result in further investigation based on the information available during the initial review. These types of cases are more likely to be dealt with at face-to-face interview.
In a type 2 case completion of the TCIR is optional and the examiner may record the interview in other formats such as bullet point notes or narrative statement. Given the nature of type 2 cases these would normally be allocated to B3 examiners to conduct the interview.
Instructions will be given to continue/complete the administration on the case via LOIS (CA08).
ix How do we deal with queries?
Pre-bankruptcy
Any general queries should be referred by the office to the central enquiry line (CEL) Tel: 020 7291 6895.
Requests for assistance in completing the petition forms via the online forms service should be referred to the dedicated helpline (0845 602 9848). The official receiver should explain to contacts in the local community (e.g. Citizens Advice Bureaux) that pre-bankruptcy queries are dealt with centrally.
Post bankruptcy
Any case-related queries which do not arise during the interview should be dealt with by reminding the bankrupt to read through the relevant leaflet(s) on the subject. If there are then still matters which are not understood or are of concern, the bankrupt can telephone the official receiver’s staff for further advice.
Non-case related callers to official receiver's offices should be referred to The Service's wide range of leaflets and FAQs on the internet, or sent copies. The official receiver should advise the caller to read through the literature and contact the CEL if they have any general queries.
x What about the report to creditors?
Revised forms CAR A and B are available for completion by the examiner, which aim to streamline the initial contact process. The procedure for the issue of the report to creditors (RTC) remains unchanged.
For further information see Case Help Manual part : Reports to Creditors.
Where can I find out more?
Insolvency Act 1986
Sections 289(1) –Investigatory duties of the official receiver
Section 291 – Duties of bankrupt in relation to official receiver
Insolvency Rules 1986
Rules 6.33 – Settlement and content of bankruptcy order
Rules 6.34 – Action to follow making of order
Rule 6.73-78 – Information to creditors
Technical Manual
Chapter 4 - Initial Procedure when Bankruptcy Order made
Case Help Manual
Notices
T36/05 – Introduction of Revised Procedures for Debtor’s Petition Cases
Forms to be used
ICON – initial contact form
TCIR - telephone/court interview record form
Click HERE to view the flowchart for Initial Contact in Debtors Petition Cases
Procedure
1 On the making of the bankruptcy order and from information provided by the debtor complete form ICON and pass completed form and statement of affairs (if available) to examiner for initial review. The statement of affairs must be clearly marked with the date it is received in the office.
2 In all cases arrange for the issue of :
the gazette and local advert.
notice to Nicesheriffs and HM Land Charges and
carry out Central Index check.
3 In all cases input details on LOIS of all case information (CA02) and any trading information (CA03).
4 If the statement of affairs has been completed using the online forms service (i-Solv), the court should be asked for the 3 to10 digit reference number on the top right of the form. Case information is then automatically downloaded onto LOIS. Requests for assistance in completing the petition forms via the online forms service should be referred to the dedicated helpline (0845 602 9848).
5 Within 2 working days of the statement of affairs being reviewed:
issue the appropriate appointment letter with relevant enclosures, according to the type as detailed on LOIS (CA08).
if appropriate, note LOIS (CA24) with the date of the appointment and diarise according to local office practice.
issue notices to other government departments and
complete trade classification details (CA03).
6 Notify other parties such as landlords, banks etc of the bankruptcy proceedings, in accordance with the examiners instructions.
7 Any general queries should be referred to the central enquiry line (CEL) Tel: 020 7291 6895.
8 Any case-related queries which do not arise during the interview should be dealt with by reminding the bankrupt to read through the relevant leaflet(s) on the subject. If there are then still matters which are not understood or are of concern, the bankrupt can telephone the official receiver’s staff for further advice.
9 Non-case related queries should be referred to The Service's wide range of leaflets and FAQs on the internet, or sent copies. The caller should be advised to read through the literature and contact the CEL if they have any general queries.
10 Arrange for the issue of the report to creditors according to examiners instructions.