Insolvency Rules Explained for Company Directors and Creditors
The Insolvency (England and Wales) Rules 2016 contain many of the procedures used to administer insolvency cases in practice. This contrasts with the Insolvency Act 1986, which sets out much of the legal framework for insolvency.
Company directors and creditors may see individual Rules referenced in statements of affairs, proof of debt forms, creditor notices, decision procedures, dividend notices and liquidation correspondence.
This directory explains some of the Insolvency Rules you are most likely to encounter in a company insolvency, what they deal with and why they may matter in practice.
This guide focuses on company insolvency in England and Wales. It is not a complete reproduction of the Rules.
Don't ignore insolvency notices, deadlines or Rule references
Insolvency notices and Rule references can affect creditor claims, voting rights, dividend payments, liquidator appointments and the way a liquidation is administered. If you are unsure what a document means, take advice before any deadline passes.
Anderson Brookes can help you understand the broader insolvency and liquidation context. If you are looking for legal powers, duties and director-risk provisions rather than procedural Rules, see our guide to Insolvency Act sections.
Find the Insolvency Rule you have seen
Choose the Rule or issue that best matches the document or situation you are dealing with, then jump to the plain-English explanation.
Starting a CVL
Creditor claims
Dividends and payments to creditors
Creditor decisions and voting
Starting a Creditors’ Voluntary Liquidation
Rules directors may see when a company is entering Creditors’ Voluntary Liquidation, including the statement of affairs and creditor decision process around the liquidator appointment.
Rule 6.3: Directors’ statement of affairs
What the Rule covers
Rule 6.3 deals with the statement of affairs made out by directors when a company is entering Creditors’ Voluntary Liquidation. This is a formal document setting out the company’s financial position at the relevant date.
When you may see it
You may see Rule 6.3 mentioned when directors are preparing for a CVL, when creditors are being given information about the company’s position, or when the statement of affairs is being delivered to the liquidator and filed with Companies House.
Why it matters
The statement of affairs helps creditors, the liquidator and other interested parties understand the company’s assets, liabilities and estimated shortfall. Directors should make sure the information is as accurate and complete as possible.
Related guidance
For a wider explanation of insolvency paperwork, see our guide to company closure and insolvency forms. For the full CVL process, see our Creditors’ Voluntary Liquidation guide.
Anderson Brookes can explain what information directors usually need to prepare before liquidation begins.
Rule 6.4: Statement of affairs contents
What the Rule covers: Rule 6.4 sets out additional information that must be included in a statement of affairs. This can include details of shareholders, assets, liabilities, secured creditors, preferential debts and unsecured creditor claims.
When you may see it: You may see Rule 6.4 referenced where a statement of affairs is being prepared, reviewed or filed as part of a liquidation process.
Why it matters: The content of the statement of affairs helps show what the company owns, what it owes, who may have security, and what may be available to creditors. Directors should avoid guessing and should check records where possible.
Related guidance: See our guide to company closure and insolvency forms for more on the statement of affairs and other liquidation paperwork.
Rule 6.14: Appointing a liquidator
What the Rule covers
Rule 6.14 deals with information to creditors and the process for seeking creditors’ decision on the nomination of a liquidator in a Creditors’ Voluntary Liquidation.
When you may see it
You may see Rule 6.14 referenced in creditor notices, CVL paperwork or correspondence explaining how creditors are asked to make a decision about the proposed liquidator.
Why it matters
The appointment of the liquidator is a key step in the CVL process. Creditors may be asked to make a decision through deemed consent or a virtual meeting, and there may be deadlines for objections or responses.
Related guidance
For more on how a CVL works, see our Creditors’ Voluntary Liquidation guide. For related director duties and risks, see our guide to Insolvency Act sections.
If your company cannot pay its debts, get advice on the CVL process, creditor position and director responsibilities before taking the next step.
If your company is insolvent or likely to enter liquidation, Anderson Brookes can help you understand the statement of affairs, creditor process and practical steps involved.
Creditor claims and proofs of debt
Rules creditors may see when proving what they are owed, submitting evidence of a claim, or being told whether a proof of debt has been accepted or rejected.
Rule 14.2: Provable debts
What the Rule covers: Rule 14.2 deals with provable debts. In practical terms, this is about what types of debts, liabilities or claims can be included in an insolvency process.
When you may see it: Creditors may see Rule 14.2 referenced when they are told whether a debt can be claimed in a liquidation, administration or other insolvency process.
Why it matters: If a debt is provable, the creditor may be able to submit a proof of debt and potentially receive a dividend if funds become available. If a claim is not provable, it may not be dealt with in the same way.
Related guidance: For a broader explanation of insolvency paperwork, see our guide to company closure and insolvency forms.
Rule 14.3: Proving a debt
What the Rule covers: Rule 14.3 deals with the need for a creditor to submit a proof of debt if they want to recover what they are owed through an insolvency process, unless an exemption applies.
When you may see it: You may see Rule 14.3 in liquidation correspondence, creditor notices or proof of debt guidance where creditors are being asked to submit details of their claim.
Why it matters: A creditor usually needs to prove their debt before their claim can be considered for voting, dividend or distribution purposes. Missing this step can affect whether the creditor participates in the process.
Related guidance: If you are unsure what paperwork is being requested, our company closure and insolvency forms guide explains common forms and documents directors and creditors may see.
Rule 14.4: Proof of debt requirements
What the Rule covers
Rule 14.4 deals with what a proof of debt must contain. A proof of debt is the document a creditor uses to set out what they believe they are owed by the insolvent company.
When you may see it
You may see Rule 14.4 referenced when a liquidator, administrator or other office-holder asks a creditor to submit a proof of debt form, provide details of their claim, or support the amount being claimed.
Why it matters
The proof of debt helps the office-holder decide whether the creditor’s claim should be admitted, rejected or queried. The information provided may affect voting rights, dividend payments and whether the creditor receives money from the insolvency estate.
Related guidance
For more on insolvency forms, see our company closure and insolvency forms directory. If you have received a notice about a dividend, see our guide to Notice of Intended Dividend in insolvency.
Anderson Brookes can help you understand the wider liquidation process and what the notice may mean in practice.
Rule 14.7: Proof accepted or rejected
What the Rule covers: Rule 14.7 deals with the office-holder’s decision to admit or reject a proof of debt for dividend purposes, either in whole or in part.
When you may see it: Creditors may see Rule 14.7 referenced when they are told whether their claim has been accepted, queried, reduced or rejected by the liquidator or other office-holder.
Why it matters: If a proof is admitted, it may be included for dividend purposes. If it is rejected, or only partly admitted, the creditor should read the reasons carefully and take advice if they disagree with the decision.
Related guidance: If the claim relates to a dividend process, see our guide to Notice of Intended Dividend in insolvency.
Rule 14.8: Challenging a proof decision
What the Rule covers: Rule 14.8 deals with appeals against an office-holder’s decision on a proof of debt, including where a creditor is dissatisfied with the decision on their own proof.
When you may see it: You may see Rule 14.8 referenced if a proof of debt has been rejected, partly admitted, or there is disagreement about how the claim has been treated.
Why it matters: There can be strict time limits for challenging a proof decision. If you disagree with a rejection or reduction, read the notice carefully and take advice quickly.
Related guidance: Anderson Brookes can explain the insolvency context, but if you are considering a formal challenge or court application, you may also need legal advice.
If you are dealing with a creditor claim, proof of debt, dividend notice or rejected claim, Anderson Brookes can help you understand the insolvency process and next steps.
Dividends and payments to creditors
Rules creditors may see when an office-holder gives notice of an intended dividend, sets a last date for proving, deals with late proofs, or declares a dividend.
Rules 14.28 to 14.30: Intended dividend notices
What the Rules cover
Rules 14.28 to 14.30 deal with notices of intention to declare a dividend. In practical terms, these notices tell creditors that the office-holder intends to make a payment to creditors and that claims need to be submitted by a set date.
When you may see them
You may see these Rules referenced in a Gazette notice, a letter from a liquidator, or correspondence explaining that creditors must submit a proof of debt before the last date for proving.
Why they matter
An intended dividend notice can affect whether a creditor receives a payment from the insolvency estate. If a creditor misses the deadline, their claim may be treated differently and they may lose the chance to participate in that dividend.
Related guidance
For more detail on this specific notice, see our guide to Notice of Intended Dividend in insolvency. For proof of debt forms and other paperwork, see our company closure and insolvency forms directory.
Check the deadline carefully and understand what the notice means before the last date for proving passes.
Rule 14.32: Late proofs of debt
What the Rule covers: Rule 14.32 deals with proofs of debt submitted after the last date for proving in a dividend process.
When you may see it: Creditors may see Rule 14.32 referenced if they submit a proof after the deadline stated in an intended dividend notice.
Why it matters: A late proof may affect whether the creditor is included in that dividend. If you have missed a deadline, read the notice carefully and take advice quickly.
Related guidance: See our guide to Notice of Intended Dividend in insolvency for more on dividend deadlines and creditor claims.
Rules 14.34 to 14.35: Declaring and notifying a dividend
What the Rules cover: Rules 14.34 and 14.35 deal with declaring a dividend and giving notice that a dividend has been declared.
When you may see them: Creditors may see these Rules referenced after the office-holder has reviewed claims and is ready to confirm that a dividend will be paid.
Why they matter: The notice helps creditors understand that a dividend has been declared, who is included, and what information applies to the payment. If you expected to be included but have not received notice, check whether your proof of debt was submitted and admitted.
Related guidance: If you are dealing with a proof of debt or dividend notice, our company closure and insolvency forms directory explains the common documents creditors may see.
If you have received a Notice of Intended Dividend, proof of debt request or dividend declaration, Anderson Brookes can help you understand the insolvency process and what the notice may mean.
Creditor decisions and voting
Rules creditors and directors may see when decisions are made using deemed consent, decision procedure notices, voting rights or admitted creditor claims.
Rule 15.7: Deemed consent
What the Rule covers
Rule 15.7 deals with deemed consent. In practical terms, this is a way of seeking creditor approval where a proposed decision can be treated as approved unless enough creditors object by the decision date.
When you may see it
You may see Rule 15.7 referenced in CVL paperwork, creditor notices or correspondence asking creditors to respond if they object to a proposed decision. It may also appear where creditors are being asked to consider the nomination of a liquidator.
Why it matters
A deemed consent notice may include a deadline for objections. If creditors do not object in the required way by the deadline, the proposed decision may be treated as made. However, deemed consent cannot be used for every type of decision, so the notice should be read carefully.
Related guidance
For more on how creditor decisions can fit into a liquidation, see our Creditors’ Voluntary Liquidation guide. For related forms and notices, see our company closure and insolvency forms directory.
Check the decision date, objection requirements and any proof of debt requirements before the deadline passes.
Rule 15.8: Decision procedure notices
What the Rule covers: Rule 15.8 sets out requirements for notices to creditors where a decision is being sought by a decision procedure. The notice should explain the decision or resolution being put to creditors and provide key details about the procedure.
When you may see it: You may see Rule 15.8 referenced in correspondence from a liquidator, administrator or other office-holder where creditors are being asked to vote or make a decision.
Why it matters: The notice should help creditors understand what decision is being sought, how to participate, and when they need to respond. Missing the deadline may affect a creditor’s ability to have their say.
Related guidance: If the notice relates to a CVL, see our Creditors’ Voluntary Liquidation guide for a wider explanation of the process.
Rules 15.31 to 15.33: Voting rights and creditor claims
What the Rules cover: Rules 15.31 to 15.33 deal with how creditor voting rights are calculated, special cases affecting voting rights, and how creditor claims are admitted or rejected for voting purposes.
When you may see them: Creditors may see these Rules referenced where a decision procedure is taking place, where the value of a creditor’s claim affects voting, or where a claim needs to be assessed before a vote or objection can count.
Why they matter: A creditor’s voting power may depend on the value and status of their claim. If a claim is disputed, partly admitted or not supported by enough evidence, it may affect whether the creditor can vote or whether an objection counts.
Related guidance: For related claim paperwork, see our company closure and insolvency forms directory. For proof of debt requirements, see the Rule 14.4 section above.
If you have received a deemed consent notice, decision procedure notice or voting-related correspondence, Anderson Brookes can help you understand the insolvency process and what the notice may mean.
Need help understanding insolvency paperwork?
If you have received a liquidation notice, proof of debt request, dividend notice, deemed consent notice or other insolvency correspondence, it is important to understand what it means before any deadline passes. Anderson Brookes can help you understand the wider insolvency and liquidation context, including what the document relates to, why it may have been sent, and what practical next steps may be available. If the document involves a formal dispute, court application or legal challenge, you may also need independent legal advice.Insolvency Rules FAQs
Answers to common questions about Insolvency Rules, proof of debt forms, dividend notices, deemed consent and creditor decision procedures.
What are the Insolvency Rules?
How are the Insolvency Rules different from the Insolvency Act?
Do the Insolvency Rules apply across the whole of the UK?
Why have I received a document referring to an Insolvency Rule?
What is a proof of debt?
What happens if my proof of debt is rejected?
What is a Notice of Intended Dividend?
What is deemed consent in insolvency?
What is a creditor decision procedure?
Why do voting rights matter in liquidation?
What is a statement of affairs?
Should I get advice if an insolvency notice includes a deadline?
Yes. If a notice includes a deadline for a proof of debt, objection, vote, dividend claim or other response, do not leave it unread. Take advice quickly so you understand what the notice means and what may happen if the deadline is missed.
Need help with insolvency rules, notices or liquidation paperwork?
Insolvency documents can be difficult to interpret, especially when they refer to specific Rules, creditor claims, proof of debt forms, dividend notices or decision procedures.
Anderson Brookes can help you understand the wider liquidation process, what the paperwork may mean, and what practical next steps may be available.
If the issue involves a formal legal dispute, court application or challenge to a decision, you may also need independent legal advice.
