DMBM671820 | Scotland - Summary Warrant: Insolvency on diligence

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Enterprise Act 2002

The Enterprise Act 2002 made important changes to insolvency law.

These changes fall into four categories

• corporate insolvency (notably the company administration procedure DMBM676640)

• abolition of crown preference

• individual insolvency

and

• the reform of the financial regime of the Insolvency Service.

Immediate action on receipt of insolvency notification

On receipt of a notification of an insolvency you must not under any circumstances start or continue proceedings for that case.

You must

• tell the sheriff officer to take no further action

• withdraw the case from summary warrant action

• (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(DMB677080)

and

• arrange for a claim to be lodged as appropriate.

Note:

In this instance Insolvency means any sequestration, company liquidation (both compulsory and voluntary winding up), administrative receivership / receivership, trust deed, company scheme of arrangement, company administration.

Crown preference

With effect from 15 September 2003 Crown preference was abolished with regard to all former Inland Revenue and HM Customs and Excise debts.

Crown preference however remains for any such debt where the relevant date is prior to 15 September 2003.