The Compendium

Proof of Debt

Every creditor who wants to ‘prove’ in an insolvency (this is, to claim for an amount they are owed by the insolvent estate) must complete a proof of debt, accompanied by evidence of their claim (such as invoices, emails, etc.). They can then be counted towards the group of unsecured creditors hoping for return of some of what they are owed.

They can also claim for a present or future debt, a certain or contingent debt, or a fixed or ascertainable debt.

A creditor who has a small debt does not need to submit a formal claim. The value attributed to a ‘small debt’ is de.ned by the Insolvency Rules as £1,000 or less.

The creditor can only vote at a creditors’ decision procedure if they have lodged a proof of debt. That claim must then be admitted by the chair.

Creditors’ proofs must be submitted by 4.00pm the day before any meeting ... ... or up to the decision date in any other decision procedure.

A valid proof of debt will include:

• The amount of the claim at the date of the insolvency intervention.
• Particulars as to how the debt was incurred.
• The particulars of any security held.
• A statement of whether or not it includes uncapitalised interest.

[See ‘Decision Procedure’.]

Proprietary Right

A proprietary right is, quite literally, a right over property. For example, something a person has legal title to and possession of.

When the property of the Bankrupt vests in the Trustee in Bankruptcy on the making of the Bankruptcy Order, the Trustee has a ‘proprietary right’ to it (even if she does not have ‘legal title’ over it).

Equally, if a person owns a scooter he has a proprietary right over it.

[See ‘Legal Title’, ‘Bankrupt’, ‘Trustee in Bankruptcy’ and ‘Bankruptcy Order’.]