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A provable debt is a Bankruptcy debt that must be proved in accordance with the Insolvency Rules 2016. A debt is proved by sending a proof of debt to the officeholder, together with evidence of the claim (for example, invoices, contracts, correspondence, etc.).
All claims by creditors are potentially provable as debts against the Bankrupt, whether they are present, future, certain, contingent, ascertained or sounding only in damages. (See ‘Non-Provable Debts’.) [See ‘Bankruptcy’, ‘Proof of Debt’ and ‘Insolvency Rules’.]
A Provisional Liquidator is appointed in a Compulsory Liquidation any time after the presentation of a petition.
An application to appoint a Provisional Liquidator will be made if the assets of the company are being dissipated, are in jeopardy (for example, by directors who realise the game is up choosing to take the company assets before they are placed outside their control – when the Order is made by the court to put the company into Compulsory Liquidation).
A Provisional Liquidator may also be appointed if the court considers it is in the best interests of the public to do so (for example, a defence company, one which may pollute the environment, etc.).
A Provisional Liquidator is an officer of the court, appointed by a court order, which will include all of their powers and duties. They will be an Insolvency Practitioner or the Official Receiver.
Their principal duty is to preserve and protect the assets of the company, until they are replaced by a Liquidator (who will be the Official Receiver at first) if and when the court makes an order to wind-up the company.
Sometimes the Provisional Liquidator will be assisted by a ‘Special Manager’.
[See ‘Compulsory Liquidation’, ‘Official Receiver’ and ‘Special Manager’.]
