DMBM655780 | Enforcement action: distraint: carrying out a distraint: debtor claims to be insolvent at the time of the levy

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• liquidation proceedings have been commenced, that is to say

• a petition has been presented for the compulsory winding up of a company (or a prior resolution for a creditor’s voluntary liquidation (CVL) has been passed) or

• a resolution has been passed for the voluntary winding-up of a company

• the company is already in liquidation

• an administrative receiver has been appointed (this tells you that it is an appointment under a debenture and that a floating charge existed prior to the appointment)

• a ‘notice of intention to appoint an administrator’ has been filed or a Company Administration Order (CAO) has been made (DMBM656170)

• a bankruptcy order has been made

• an individual Administration Order is in place in the county court

• an Interim Order, or an application for an Interim Order (individual) has been made

• you are seeking to enforce a partnership debt and you are told that the partnership has been wound up under the Insolvent Partnership Order 1994

• a Voluntary Arrangement has been approved (Company, Individual or Partnership).

Note: If a debtor merely says they are proposing to

• go into Voluntary Arrangement or Administration (company)or

• seek an Interim Order (individual) or an Administration Order in the County Court

but cannot provide evidence that they have taken any of the above steps, such as documentation or details of the Insolvency Practitioner or other professional whose help they have sought, and you believe the contention is made to prevent you distraining, you can levy distraint.