Bankruptcy Interviews - Debtor's Petition Cases

December 2005

PART 3

11.35 Categorisation of cases

Bankruptcy debtor's petition cases are categorised according to the complexity of the case and the amount of further information that will need to be obtained after the official receiver has received and reviewed the statement of affairs. The review of the statement affairs should be focussed initially on the reasons for the insolvency, and the official receiver should begin the review by examining Section 11 of the statement of affairs - Causes of bankruptcy.

The categories of cases are as follows:

Type 0. These are cases where a view is taken that there is no essential information to be gathered and that the necessary recommendations can be made and instructions given without any need to contact the bankrupt. An interview is unnecessary.

The reason for the insolvency is fully explained in the statement of affairs, and no further information is needed from the bankrupt in respect of any asset or IPA/IPO matters to be dealt with.

Type 1. These are cases where the official receiver needs further information, but the matter is not complex. For example:

  • possible IPA/IPO,

  • simple asset queries where there is insufficient information in the statement of affairs to deal appropriately with the asset, e.g. motor vehicle to exempt,interest in property to be realised,

  • clarification of the pattern of indebtedness, e.g. where a bankrupt has numerous credit card/loan creditors, the official receiver may decide that it would be appropriate to interview the bankrupt in order to clarify the period over which credit was incurred and what it was used to purchase.

Unless it is clear from the review that a case is a type 0 or 2, it should be approached with an initial view that it will be a type 1 case. An interview in a type 1 case should not take any longer than 1 hour.

Type 2. These are cases where a longer interview is needed for the official receiver to examine more complex issues. Examples of the type of issues that would lead to a case being treated as type 2 are;

  • where the bankrupt traded up until the bankruptcy order or ceased to trade shortly before the bankruptcy order. Any case where a PIQDB is deemed necessary will by definition be a type 2 case, as it will involve recent trading,

  • where assets have been disposed of within the relevant period leading up to the bankruptcy order,

  • where the bankrupt has been made bankrupt previously

  • where there are clear indications of other potential misconduct in the statement of affairs.

11.36 Procedure for Type 0 cases

Amended February 2014

Where the official receiver decides after his/her examination of the statement of affairs that the case is a Type 0 case and no interview is necessary, the combined package BKTINITIAL  note 1 must be sent to the bankrupt informing him/her that the official receiver does not wish to interview him/her at the present time. Where an interview does not take place, the official receiver must ensure that where assets are to be realised or exempted the appropriate letter is sent to ensure that the bankrupt is aware in a timely fashion of how the bankruptcy will affect certain assets. If a motor vehicle is to be exempted the reason for exemption must be ascertained and this may result in some cases becoming type 1 cases, albeit that the contact time with the bankrupt will be brief.

The official receiver must be satisfied that he/she can give a sufficiently detailed explanation of the reasons for the insolvency from the information in the statement of affairs, and the reasons for insolvency must be included in the report to creditors. Each case must be judged on its individual facts and circumstances. It is not appropriate for the official receiver to apply arbitrary criteria, such as the monetary total of the liabilities in the case, in order to decide if a case is type 0 or type 1.

An illustration of the level of detail required for the report to creditors in a type 0 case is as follows:

"In May 1994, following 12 successful years as a self employed electrician, my wife became ill and could no longer work. Since then being responsible for all of the household bills I have supplemented my income with the use of loans and credit cards until I could no longer make the repayments."

note 1

Bankruptcy Interviews - Debtor's Petition Cases

1. BKTINITIAL-a combined package that includes:

  • NTB1 – appointment letter
  • NTB2 – notice setting out the duties and responsibilities of an undischarged bankrupt
  • TNIDIS – tax and NI disclosure authority
  • DPADA  - data protection act disclosure authority
  • EMF – ethnic monitoring form. 

2. Telephone/court interview record - TCIR

3. Letter, court interview form - LIC

4. Narrative sheet form - PRENAR

5. Debtor's Bankruptcy Petition Preliminary Information Questionnaire - PIQDP

11.37 Procedure for Type 1 cases

(amended February 2014)

The interview in a type 1 case can be carried out by telephone (see also paragraph 11.38) or in person (see also paragraph 11.39), at the official receiver's office if the bankrupt attends upon the official receiver directly after the making of the bankruptcy order, or at the court if there are the facilities to do so and the official receiver is present at court after the bankruptcy order is made.

The telephone/court interview record (TCIR) form note 2 must be used to record information obtained during the interview, in whatever manner the interview is conducted. A copy of the TCIR should be given to any trustee other than the official receiver subsequently appointed in accordance with rule 6.125(7).

note 2

Bankruptcy Interviews - Debtor's Petition Cases

1. BKTINITIAL-a combined package that includes:

  • NTB1 – appointment letter
  • NTB2 – notice setting out the duties and  responsibilities of an undischarged bankrupt   
  • TNIDIS – tax and NI disclosure authority
  • DPADA  - data protection act disclosure authority
  • EMF – ethnic monitoring form. 

2. Telephone/court interview record - TCIR

3. Letter, court interview form - LIC

4. Narrative sheet form - PRENAR

5. Debtor's Bankruptcy Petition Preliminary Information Questionnaire - PIQDP

11.38 Considerations where interview is conducted by telephone

Bankruptcy Interviews - Debtor's Petition Cases

(amended February 2014)

Arrangements should be made with the interviewee for a date and time for the telephone interview to take place, and the combined package BKTINITIAL note 1 should be sent to confirm these arrangements.

Telephone interviews should usually be conducted via a land telephone line, and bankrupts should be encouraged to provide a landline number. Where a mobile telephone number is the only telephone the interviewee has access to, the interview may be conducted via the mobile telephone.

note 1

1. BKTINITIAL-a combined package that includes:

  • NTB1 – appointment letter
  • NTB2 – notice setting out the duties and responsibilities of an undischarged bankrupt   
  • TNIDIS – tax and NI disclosure authority
  • DPADA  - data protection act disclosure authority

2. Telephone/court interview record - TCIR

3. Letter, court interview form - LIC

4. Narrative sheet form - PRENAR

5. Debtor's Bankruptcy Petition Preliminary Information Questionnaire - PIQDP

11.39 Consideration where interview is conducted face to face

(amended February 2014)

Whether carried out at the official receiver's office or at the court, the interview should be held in a private room.

A type 1 interview carried out face to face with the interviewee should not be conducted any differently to a telephone interview. The official receiver should not draw the interviewee's attention to the Perjury Act 1911 in a type 1 case, nor should the interviewee be asked to sign the TCIR, which is the official receiver's record of information gathered.

The interviewee can and should be asked to sign the appropriate IPA forms if an agreement is reached during the interview.

The combined package BKTINITIAL Note 1 should be given to the bankrupt during the interview.

At the beginning of every face to face interview, the official receiver should explain to the interviewee that notes will be taken in the initial stage of the interview, and that a narrative statement may then be taken if more detailed information is required. See also paragraph 11.20 for the procedure where further investigation matters are discovered during the interview.

Note 1

Bankruptcy Interviews - Debtor's Petition Cases

1. BKTINITIAL-a combined package that includes:

  • NTB1 – appointment letter
  • NTB2 – notice setting out the duties and responsibilities of an undischarged bankrupt  
  • TNIDIS – tax and NI disclosure authority
  • DPADA  - data protection act disclosure authority

2.Telephone/court interview record - TCIR

3.Letter, court interview form - LIC

4.Narrative sheet form - PRENAR

5..Debtor's Bankruptcy Petition Preliminary Information Questionnaire - PIQDP

11.40 Procedure when further investigation matters are discovered during a type 1 case interview

Amended February 2014

If it becomes apparent during the interview that there are possible matters of misconduct that will require further investigation, the official receiver may conclude the interview having dealt with all the case administration matters, and then mark the case at CAR B stage as requiring a further interview to examine possible matters of further investigation. Alternatively, the official receiver may choose to deal with the further investigation matters during the interview after the questions regarding administrative matters have been concluded.

The interviewer will need to exercise his/her professional judgment as to how far to progress a line of enquiry that may have both administrative and investigative relevance during an interview as part of the TCIR; for example, where an asset has been disposed of for less than its full value shortly before the bankruptcy order was made, the official receiver will need to obtain sufficient information to recover the value lost to the bankruptcy estate, which may include information that suggests or explains possible misconduct by the bankrupt.

Where the interview is being conducted face to face, and matters of possible misconduct are apparent from the information being given by the interviewee, the official receiver may wish to take a narrative statement from the interviewee to cover the further investigation areas. The interviewee's attention should be drawn to the Perjury Act 1911 section 5 before the narrative statement is taken. The Narrative sheet form note 4 should be used, and the interviewee should be asked to read through and sign and date each page of the statement taken, and any alteration made. Once signed and dated, no alterations should be made to the statement. If the interviewee is unable to read the statement, the statement must be read to the interviewee by a third party. On the last page of the statement the person who read it out must endorse it as follows:

note 4

Bankruptcy Interviews - Debtor's Petition Cases

1. BKTINITIAL-a combined package that includes:

  • NTB1 – appointment letter
  • NTB2 – notice setting out duties and responsibilities of an undischarged bankrupt  
  • TNIDIS – tax and NI disclosure authority
  • DPADA  - data protection act disclosure authority
  • EMF – ethnic monitoring form. 

2.Telephone/court interview record - TCIR

3.Letter, court interview form - LIC

4.Narrative sheet form - PRENAR

5.Debtor's Bankruptcy Petition Preliminary Information Questionnaire - PIQDP

11.41 Procedure for type 2 cases

(amended February 2014)

As type 2 case interviews require more complex matters to be examined, the bankrupt should be asked to attend at the official receiver's office for interview. The official receiver may use the TCIR to record case administration information, or may record case administration information in any other appropriate format, such as bullet points. A copy of the TCIR or notes taken should be given to any trustee other than the official receiver subsequently appointed in accordance with rule 6.125(7).

The interviewee should not be asked to sign notes taken for case administration purposes, and it is not appropriate to draw the interviewee's attention to the Perjury Act 1911 section 5 until further investigation matters are being examined. At the beginning of every face to face interview, the official receiver should explain to the interviewee that notes will be taken in the initial stage of the interview, and that a narrative statement may then be taken if more detailed information is required.

If the bankrupt has traded in the two year period ending with the date of the bankruptcy order, and there are matters relating to the business to be dealt with by the official receiver, the bankrupt should be required to complete the Debtor's Bankruptcy Petition Preliminary Information Questionnaire note 5 prior to the interview. The accounting records of the business should be collected by the official receiver, and where the bankrupt brings them with him/her to the interview they should be scheduled in the appropriate table at the end of the PIQDB. A receipt should also be given for any records handed over. For more information on the appropriate procedure for dealing with accounting records, see Chapter 10 Part 2 - Custody, storage, preservation and destruction of records

The official receiver can deal with any matters requiring further investigation during the interview at his/her discretion, or may decide to interview the bankrupt again to deal with these matters after the CAR B has been completed. Where he/she examines further investigation matters during the interview, the official receiver must draw the interviewee's attention to the Perjury Act 1911 section 5 before a narrative statement is taken. The Narrative sheet form note 4 should be used, and the interviewee should be asked to read through and sign and date each page of the narrative statement taken, and any alteration made .If the interviewee is unable to read the statement, the statement must be read to the interviewee by a third party. On the last page of the statement the person who read it out must endorse it as follows:

"On (date) I (name) (occupation) of (address) read out this statement to (name of interviewee) who signed it in my presence." The endorsement must be signed and dated by the person who made the endorsement. Where the interviewee is unable to sign the statement, the person who reads out the statement to the interviewee should refer to this in their endorsement, indicating why it was not possible for the interviewee to sign the statement.

note 5/note 4

Bankruptcy Interviews - Debtor's Petition Cases

1. BKTINITIAL-a combined package that includes;

  • NTB1 – appointment letter
  • NTB2 – notice setting out the duties and responsibilities of an undischarged bankrupt restrictions
  • TNIDIS – tax and NI disclosure authority
  • DPADA  - data protection act disclosure authority

2. Telephone/court interview record - TCIR

3. Letter, court interview form - LIC

4. Narrative sheet form - PRENAR

5. Debtor's Bankruptcy Petition Preliminary Information Questionnaire - PIQDP

11.42 Time Recording where investigation matters are dealt with during the interview

Time spent on further investigation matters during an interview carried out before the CAR is submitted must be allocated to pre CAR investigation time (BIV sub-category VH), and must not be allocated to administration (BCA) time.

 

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