http://www.legislation.gov.uk/id/uksi/1994/2507

http://www.legislation.gov.uk/uksi/1994/2507/part/8/made

The Insolvency Regulations 1994

Business practice and regulation

Insolvency

King's Printer of Acts of Parliament

2016-02-08

INSOLVENCY;COMPANIES, INDIVIDUALS, ENGLAND AND WALES

These Regulations replace the Insolvency Regulations 1986 (as amended) and provide for a less onerous regime in respect of administrative matters that were covered by the 1986 Regulations. In particular the Regulations provide for:the crediting of interest on balances in excess of £2,000 standing to the credit of companies in the Insolvency Services Account without the need for the liquidator to give notice (regulation 9(6));the abolition of the automatic requirement for liquidators in compulsory liquidations and trustees to provide annual accounts of their receipts and payments (but the Secretary of State has power to require accounts to be sent to him (regulations 14(1) and 28(1));the submission of accounts where a liquidator or a trustee vacates office prior to the holding of the final creditors' meeting and the submission of accounts after the holding of the final creditors' meeting (regulations 14 and 28);an increase in the hourly rate for remuneration of the official receiver whilst acting as interim receiver, provisional liquidator or as liquidator or trustee where that remuneration is not calculated as a percentage of the assets realised or distributed (regulation 35 and Schedule 2, Tables 2 and 3). The increases in hourly rates are broadly in line with inflation;the abolition, in certain cases, of remuneration for the provision of services by certain grades of staff (regulation 35 and Schedule 2, Tables 2 and 3); andan upper limit on remuneration calculated by reference to realisations for functions carried out by the official receiver in cases where the bankruptcy debts and expenses are paid in full (or, in the case of the bankruptcy debts, are secured to the satisfaction of the court) (regulation 34).

The Insolvency Regulations 1994

Regulations

The Investment Bank Special Administration Regulations 2011

Sch. 6

Pt. 1

reg. 27(a)

reg. 1

Insolvency Regs

The Insolvency Regulations 1994

reg. 7(A1)

The Insolvency (Amendment) Regulations 2011

Sch.

para. 2

reg. 4

reg. 1

Insolvency Regs

The Insolvency Regulations 1994

reg. 7(3A)

The Insolvency (Amendment) Regulations 2011

Sch.

para. 4

reg. 4

reg. 1

Insolvency Regs

The Insolvency Regulations 1994

reg. 8(A1)

The Insolvency (Amendment) Regulations 2011

Sch.

para. 5

reg. 4

reg. 1

Insolvency Regs

The Insolvency Regulations 1994

reg. 8(3A)

The Insolvency (Amendment) Regulations 2011

Sch.

para. 7

reg. 4

reg. 1

Insolvency Regs

The Insolvency Regulations 1994

reg. 9(6)-(6B)

The Insolvency (Amendment) Regulations 2004

Sch.

para. 2(1)

Sch.

para. 2(2)

reg. 1(1)

The Insolvency Regulations 1994

reg. 23A(6)-(6B)

The Insolvency (Amendment) Regulations 2004

Sch.

para. 3(1)

Sch.

para. 3(2)

reg. 1(1)

The Insolvency Regulations 1994

regs 3B

The Insolvency (Amendment) Regulations 2008

reg 3

Insolvency Regs

The Insolvency Regulations 1994

reg 3A (Pt 1A)

The Insolvency (Amendment) Regulations 2005

regs 4

Insolvency Regs

The Insolvency Regulations 1994

reg 36A (Pt 5A)

The Insolvency (Amendment) Regulations 2005

regs 4

Insolvency Regs

The Insolvency Regulations 1994

Regulations

Limited Liability Partnerships Regulations 2001

Sch. 6 Pt. 2

para. 10

reg. 10(2)

reg. 1

Insolvency Regs

The Insolvency Regulations 1994

reg 23A

The Insolvency (Amendment) Regulations 2001

reg 3 Schedule

Insolvency Regs

The Insolvency Regulations 1994

Regulations

The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009

art. 3

Sch.

art. 1

Insolvency Regs

The Insolvency Regulations 1994

Regulations

The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023

reg. 4

reg. 1(2)

The Insolvency Regulations 1994

Regulations

The Payment and Electronic Money Institution Insolvency Regulations 2021

Sch. 3

para. 2

reg. 5

reg. 2

The Insolvency Regulations 1994

Regulations

The Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012

Sch.

para. 2

reg. 1

Insolvency Regs

PAYMENTS INTO AND OUT OF THE INSOLVENCY SERVICES ACCOUNT

Payments into the Insolvency Services Account20

1

Subject to regulation 21 below, the trustee shall pay all money received by him in the course of carrying out his functions as such without any deduction into the Insolvency Services Account kept by the Secretary of State with the Bank of England to the credit of the bankrupt once every 14 days or forthwith if £5,000 or more has been received.

2

Every payment of money into the Insolvency Services Account under this regulation shall be—

a

made through the Bank Giro system; or

b

sent direct to the Bank of England, PO Box 3, Birmingham B2 5EY by cheque drawn in favour of the “Insolvency Services Account” and crossed “A/c payee only” “Bank of England”,

and the trustee shall on request be given by the Department a receipt for the money so paid.

3

Every payment of money under paragraph (1) above shall be accompanied by a form obtainable from the Department for that purpose or by a form that is substantially similar.

Local bank account and handling of funds not forming part of the bankrupt’s estate21

1

Where the trustee intends to exercise his power to carry on the business of the bankrupt, he may apply to the Secretary of State for authorisation to open a local bank account, and the Secretary of State may authorise him to make his payments into and out of a specified bank, subject to a limit, instead of into and out of the Insolvency Services Account if satisfied that an administrative advantage will be derived from having such an account.

2

Money received by the trustee relating to the purpose for which the account was opened may be paid into the local bank account to the credit of the bankrupt to whom the account relates.

3

Where the trustee opens a local bank account pursuant to an authorisation granted under paragraph (1) above he shall open and maintain the account in the name of the bankrupt.

4

Where money which does not form part of the bankrupt’s estate is provided to the trustee for a specific purpose it shall be clearly identifiable in a separate account.

5

The trustee shall keep proper records, including documentary evidence of all money paid into and out of every local bank account opened and maintained under this regulation.

6

The trustee shall pay without deduction any surplus over any limit imposed by an authorisation granted under paragraph (1) above into the Insolvency Services Account in accordance with regulation 20(1) above.

7

As soon as the trustee ceases to carry on the business of the bankrupt or vacates office or an authorisation given in pursuance of an application under paragraph (1) above is withdrawn, he shall close the account and pay any balance into the Insolvency Services Account in accordance with regulation 20(1) above.

Payment of disbursements etc. out of the Insolvency Services Account22

1

On application to the Department, the trustee shall be repaid all necessary disbursements made by him, and expenses properly incurred by him, in the course of his administration to the date of his vacation of office out of any money standing to the credit of the bankrupt in the Insolvency Services Account.

2

The trustee shall on application to the Department obtain payment instruments to the order of the payee for sums which become payable on account of the bankrupt for delivery by the trustee to the persons to whom the payments are to be made.

3

Any application under this regulation shall be made on a form obtainable from the Department or on one that is substantially similar.

4

On the trustee vacating office, he shall be repaid by any succeeding trustee out of any funds available for the purpose any necessary disbursements made by him and any expenses properly incurred by him but not repaid before he vacates office.