February 2006
This Part details some preliminary lines of enquiry that may be useful to pursue in the majority of cases. For more detailed information on initial actions and enquiries on the making of an order, see Chapter 3 Part 2 and Part 3 - Initial procedure when a winding-up order is made and Chapter 4 Part 2 and Part 3 - Initial procedure when a bankruptcy order is made.
15.15 Purpose of preliminary enquiries
The official receiver's investigation into the reasons for the insolvency and the affairs of the company, partnership or bankrupt begins as soon as the notification of the winding-up or bankruptcy order is received. The purpose of any enquiries made by the official receiver shortly after the making of the winding-up or bankruptcy order is to obtain information about the company, partnership or bankrupt's affairs, to prevent the disposal or removal of assets and records, and where appropriate to ensure that the company, partnership or bankrupt has ceased to trade.
If initial enquiries are carried out thoroughly and effectively in advance of the first interview, the official receiver will be able to use the information gathered to verify and test information given in the interview. This is likely to lead to a better focused interview and may reduce the number of interviews needed later.
The information gathered during the initial enquiries may also be of use when the CAR is completed.
15.16 Initial action on receipt of a winding-up order
(Amended November 2012)
On receipt of a winding-up order, the official receiver should check that the details of the company are correct, that the company has not been dissolved, the company’s registration number is shown on the winding-up order and that a winding-up order has not previously been made against the same company. Where the company has been dissolved, has changed it's name shortly before the hearing of the winding-up petition, or has previously been wound up by another court the official receiver cannot proceed under the order, and should notify the court and the solicitors acting for the petitioners of this fact. Further information regarding these checks is available from Chapter 3, paragraph 3.17.
In order to establish details of the company and its officers, the official receiver should, in the first instance, carry out a search using the facilities provided by Experian. The Experian Ltd Company Gold Report search can provide information about the company such as address details, principal activities, number of employees, judgements against the company, previous searches, credit rating, risk score, payment performance and directorship information, which, in addition to providing the contact details of current and former company officers, may assist the official receiver in establishing the financial position of the company and lead to further avenues of enquiry. Further information regarding the use of Experian searches can be found at the ORBS section of the Intranet here.
15.17 Initial action on receipt of a bankruptcy order
(August 2008)
On receipt of a bankruptcy order, the official receiver should check that the name and description on the bankruptcy order are correct. Where the information is materially incorrect or insufficient to enable creditors to identify the bankrupt, the official receiver should apply to the court to amend the title of the proceedings. Further information regarding this is available from Chapter 4, paragraph 4.19).
It is unlikely that any such shortcomings in the bankrupt's description will be discovered before contact is made with the bankrupt.
15.18 Notices to be sent on the making of an order
(August 2008)
In order to protect assets and prevent debts increasing the official receiver must give immediate notice of the winding-up or bankruptcy order to any organisation or person whose interest justifies immediate notice, e.g. bank, building society, High Court Enforcement Officer.
In addition to protecting and securing the estate, responses to the notices sent out may contain information that is useful to the official receiver's investigation. Further information regarding notices required is available from Chapter 3 and Chapter 4 of the Technical Manual.
15.19 Searches against company officers, partners or bankrupts
(August 2008)
Searches should be carried out against the names of company officers, partners and bankrupts to establish whether they have previously been made bankrupt or are subject to a bankruptcy restrictions order or undertaking. Searches of the individual insolvency register for this purpose can be carried out via Central Index.
Searches on the Central Index system may also reveal previous corporate insolvencies that the individual concerned has been involved in. Although any creditors voluntary liquidations, administrations or administrative receivership cases made since 1 April 2005 are recorded separately on the Enforcement Management System (EMS) a link to which is available on the intranet front page.
Searches against the names of company officers should also be carried out to establish whether they are subject to a disqualification order or undertaking. Searches for this purpose are made using the Companies House database (see Chapter 3, paragraph 3.39 and Chapter 4, paragraph 4.46).
Disqualification searches against the names of partners or bankrupts should be carried out if there are circumstances which lead the official receiver to believe that a search may be worthwhile, e.g. where a bankrupt discloses directorships of companies subject to insolvency proceedings or he/she is employed by a company of which the directors are close family members.
Where the circumstances merit it the official receiver may also carry out searches on the Companies House database to establish if a company officer, partner or the bankrupt is a company officer of any other companies.
15.20 Initial enquiries on receipt of a winding-up or bankruptcy order
(August 2008)
The official receiver must where possible make initial enquiries into the status of the company, partnership or bankrupt within 24 hours and certainly within 48 hours of notification of the insolvency order and, where appropriate, take steps within the same period to effect the cessation of trading.
First enquiries are likely to be telephone enquiries of the petitioner or the petitioner's solicitor, before an attempt is made to contact the company officers, partners or bankrupt as the case may be. Where they are known, the official receiver should also attempt to telephone the insolvent's accountants or solicitors.
In a debtor’s petition bankruptcy case, the standard initial contact form [Note 1] must be used to record any initial enquiries undertaken (see Chapter 4, paragraph 4.38). The initial contact stage in a debtor’s petition bankruptcy case is limited to the gathering of essential information only pending the receipt of the statement of affairs [Note 2]. If the official receiver is able to conduct the initial review of the statement of affairs immediately following the making of the bankruptcy order, either at the court or if the bankrupt attends at the official receiver's office directly from court, there may be no need to carry out the standard initial contact procedures or use the standard initial contact form as the information needed will be available from the statement of affairs.
In creditor’s petition winding up or bankruptcy cases, the standard initial enquiry forms [Note 3] must be used to record any initial enquiries undertaken. Further information regarding initial enquiries is available from Chapter 3 and Chapter 4 of the Technical Manual and from the Official Receiver Services intranet page as a special edition bulletin.
15.21 Initial review and classification of debtors bankruptcy cases
On receipt of the statement of affairs [note 2] in a debtors petition bankruptcy case the official receiver must review the information contained therein in order to categorise the case according to its complexity and the amount of additional information that will need to be obtained. This will determine the correct procedure for dealing with the case. The review of the statement affairs in most cases should take no longer than half an hour and 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 review of the statement of affairs should take place within 48 hours of its receipt into the office. Any matters identified for urgent attention that the use of the standard initial contact form [note 1] failed to draw out should be dealt with immediately.
As part of the review the official receiver should identify the additional information that he/she requires in order to make a decision as to any further investigation, draw conclusions as to the reason(s) for insolvency, issue instructions as to the treatment of assets and determine whether an IPA should be sought.
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:
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.
These types of cases are more likely to be dealt with at face to face interview.
15.22 HM Revenue and Customs - companyand partnership liquidations
Telephone enquiries should not be made of the HM Revenue and Customs or their solicitors, including cases where they are the petitioning or supporting creditor.
HM Revenue and Customs can disclose any information relating to the affairs of the company, which could have been disclosed to the company, to the official receiver when acting as the company's liquidator (on the basis that the liquidator stands in the shoes of the company). Partnership liquidations are dealt with in the same way for these purposes, although the liquidator's authority will only cover the tax affairs of the partnership and not the personal tax affairs of a partner.
In cases where HM Revenue and Customs has petitioned or supported the petition for a winding-up order in respect of unpaid taxes other than VAT, requests for information should be made in writing to HM Revenue and Customs Enforcement & Insolvency Service, Durrington Bridge House, Barrington Road, Worthing BN12 4SE. Enquiries in all other cases should be sent to the local taxpayer service office or taxpayer district office which last handled the company's tax affairs.
VAT - if the company is registered for VAT, form VAT769 should be sent to the company’s local VAT office where it is known that the company is or was registered for VAT. No other notification of the order is required.
HM Revenue and Customs are happy to provide initial enquiry information (if known) on new cases if the official receiver is unable to obtain the information via other routes. A standard form 'VAT' is available for this purpose. Requests for initial information should be sent by email.
No other notification of the order is required. HM Revenue and Customs do not wish to receive information unless a VAT number is available and form VAT should not be sent until the information in questions 1 to 6 is available. No accompanying letter is necessary. Correspondence received without a VAT number will not be actioned and will be returned to the official receiver.
Requests for information in investigation cases should be e-mailed to directorsdisqualificationunitddu@hmrc.gsi.gov.uk Contact details are as follows;
Directors Disqualification Unit
RBS North
HM Revenue and Customs
3rd Floor SW
Queens Dock
Liverpool L74 4AU
For further information on liaising with HM Revenue and Customs please refer to Contact with Crown Departments on the OROS intranet page.
15.23 HM Revenue and Customs - bankruptcy
For tax and National Insurance contributions - where the petitioning creditor is HM Revenue and Customs for unpaid tax and national insurance contributionscontact should be made with the HM Revenue and Customs Enforcement & Insolvency Service, Durrington Bridge House, Barrington Road, Worthing BN12 4SE.
Where HM Revenue & Customs is not the petitioning or supporting creditor, if information is required about the taxpayer's affairs it should be sought from the local taxpayer service office or taxpayer district office (which last handled the bankrupt's tax affairs). To request this information in a bankruptcy, the official receiver must hold written consent from the bankrupt (for the disclosure of the information) [note 3] or a court order under section 369. This authority is similarly required where HM Revenue & Customs is the petitioning or supporting creditor if the official receiver requires information beyond that contained in the initial information package.
For VAT - if the bankrupt is registered for VAT, form VAT769 should be sent to;
HM Revenue & Customs, Insolvency Operations, 3NW, Queens Dock, Liverpool L74 4AA
No other notification of the order is required. HM Revenue and Customs do not wish to receive information unless a VAT number is available and form VAT should not be sent until the information in questions 1 to 6 is available. No accompanying letter is necessary. Correspondence received without a VAT number will not be actioned and will be returned to the official receiver.
Requests for information in investigation cases should be e-mailed to directorsdisqualificationunitddu@hmrc.gsi.gov.uk Contact details are as follows;
Directors Disqualification Unit
RBS North
HM Revenue and Customs
3rd Floor SW
Queens Dock
Liverpool L74 4AU
For further information on liaising with HM Revenue and Customs please refer to Contact with Crown Departments on the OROS intranet page.
15.25 Contact with company officers, partners or bankrupt
The official receiver should attempt to contact the company officers, partners or bankrupt by telephone, where possible, within twenty-four hours of the notification of the order, in order to make initial enquiries into the status of the company, partnership or bankrupt. Notification of the requirement to attend for interview or to be available for interview by telephone should be sent within two working days.
File notes must be kept of telephone conversations. If the information obtained is of a significant nature it should be confirmed in writing with the other party.
In every case a letter must be sent to the company officer, partner or bankrupt within 2 working days of the date of the order, either fixing an appointment for a face to face interview [note 4], a telephone interview [note 5], confirming that an interview has already taken place [note 6] or informing the company officer or debtor petition bankrupt in a type 0 case that the official receiver does not intend to carry out an interview at present [note 7]. Where appropriate the preliminary information questionnaire and the appropriate guidance leaflets should be sent with the appointment letter [note 8]. Whether the interview is by telephone or attendance at the office, it should be held as soon as possible after the making of the order.
The official receiver has the right to examine the court file, and may wish to do so as part of the initial enquiries, particularly where there is little other information available [note 9]. Notes can be made of any useful information, such as alternative addresses from affidavits. Documents should not be removed from the court file when being photocopied.
An inspection should always be carried out where it is known or suspected that a company or bankrupt is trading or has only recently ceased to trade.
An inspection may also be necessarywhere a director, partner or bankrupt has failed to surrender to the proceedings, in order to make a final attempt to arrange attendance or confirm their address before commencing public examination proceedings.
During an inspection, the inspecting officer should collate any information that will assist in any future investigation e.g. accounting records, evidence of property removed immediately before the making of the order.
Where accounting records are removed during an inspection, a receipt must be given, detailing as clearly as possible what has been removed [note 10].
For more information about when an inspection is appropriate, see [Chapter 8 Part 1 - Inspection, protection and collection of assets.
15.29 County Court Judgments and Experian
(August 2008)
The official receiver can request a search of the Register of County Court Judgments, although it is not envisaged that such searches will be undertaken as a matter of course following the introduction of the Experian search facilities.
Since 2004 each official receiver’s office has had the ability to undertake Experian searches for individuals (citizenview) or limited companies (gold report) at a cost of £1.60 or £7.00 respectively. Further information and guidance regarding completion of these searches is available from the Official Receiver Services case management intranet page under the heading: Experian.
These searches could be used to discover further creditors or to establish whether the individual is registered at a particular address, and may be useful if the individual is proving difficult to contact. Further information regarding initial enquiries is available from Chapter 3, Part 2 and Chapter 4, Part 2 of the Technical Manual and from the Official Receiver Services intranet page as a special edition bulletin.
Where it is deemed necessary the official receiver may undertake a search of the Register of County Court Judgments search by completing a form and submitting it to Registry Trust Limited at 173 -175 Cleveland Street, London W1T 6QR. The form can be completed on-line at the Registry Trust Ltd website at www.registry-trust.org.uk but it must be printed out and sent by post together with the fee (currently £8.00) which is payable for a search of each name and address. The fee should be charged to the estate.
15.29A Obtaining copy bank statements (inserted April 2012)
The official receiver may decide to obtain copy bank or building society account statements if further enquires are necessary in relation to asset/further investigation matters. The Service has an agreement with certain banks/building societies, that requests for copy statements will be sent centrally by Official Receivers’ Business Support (ORBS) on a fortnightly basis. The official receiver should consult guidance in Chapter 31.5, Annex B prior to requesting copy statements to see if the bank or building society concerned is participating in this centralised method. If they are, the guidance should be followed, and the request sent to ORBS on a standard spreadsheet available HERE.
Requests for statements from other financial institutions can be lodged in the normal way via post. Please refer to the contact details held on the ORBS intranet site for addresses and preferred contact method, via the following link: http://intranet/CAD/ORBS/Banks.htm
[Back to Part 1 - The official receiver's statutory duties and legislative framework] [On to Part 3 - Interviews]