Proof of Debt

Once a company or individual enters formal insolvency, creditors cannot simply expect to be paid automatically — they must formally establish their claim. Rule 14.4 of the Insolvency (England and Wales) Rules 2016 sets out what a proof of debt must contain: it 'must be made out by, or under the direction of, the creditor and authenticated by the creditor or a person authorised on the creditor's behalf', and must state the creditor's name and address, identify the company if the creditor is one, and state the total amount claimed as at the relevant date.

The Insolvency Service publishes an official template for this purpose — 'Rule 14.4 Proof of Debt (General Form)', described as a 'template for a proof of debt (general form) in relation to the Insolvency (England and Wales) Rules 2016.' Submitting a proof of debt matters practically because it is what entitles a creditor to vote on decisions in the insolvency process (such as approving a liquidator's or administrator's proposals) and to receive a dividend distribution once the insolvent estate's assets are realised and distributed in the statutory order of priority.