Insolvency Act 1986, section 256A

Debtor’s proposal and nominee’s report

Part VIII Individual Voluntary Arrangements

(1)This section applies where a debtor (being an individual)—

(a)intends to make a proposal under this Part (but an interim order has not been made in relation to the proposal and no application for such an order is pending), and

(b)if he is an undischarged bankrupt, has given notice of the proposal to the official receiver and, if there is one, the trustee of his estate,

F590...

(2)For the purpose of enabling the nominee to prepare a report [F591 under subsection (3)F591] , the debtor shall submit to the nominee—

(a)a document setting out the terms of the voluntary arrangement which the debtor is proposing, and

(b)a statement of his affairs containing—

(i)such particulars of his creditors and of his debts and other liabilities and of his assets as may be prescribed, and

(ii)such other information as may be prescribed.

(3)If the nominee is of the opinion that the debtor is an undischarged bankrupt, or is able to [F592 make a bankruptcy applicationF592] , the nominee shall, within 14 days (or such longer period as the court may allow) after receiving the document and statement mentioned in subsection (2), submit a [F593 report to the debtor's creditorsF593] stating—

(a)whether, in his opinion, the voluntary arrangement which the debtor is proposing has a reasonable prospect of being approved and implemented, [F594 andF594]

(b)whether, in his opinion, [F595 the debtor's creditors shouldF595] consider the debtor’s proposal F596...

F597(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)The court may—

(a)on an application made by the debtor in a case where the nominee has failed to submit the report required by this section or has died, or

(b)on an application made by the debtor or the nominee in a case where it is impracticable or inappropriate for the nominee to continue to act as such,

direct that the nominee shall be replaced as such by another person qualified to act as an insolvency practitioner, or authorised to act as nominee, in relation to the voluntary arrangement.

(5)The court may, on an application made by the nominee, extend the period within which the nominee is to submit his report.F589]

Definitions used in section 256A 1

the debtor

(2) In Schedule 6 “the debtor” means the company or the individual concerned.

Defined in s.386(2) · see it in the full Act

Cases considering section 256A 9

Scio-Fund Sicav-Fis & Anor v Mohammed Reza Aslam Merchant & Anor

[2026] EWHC 815 (Ch) · 16 April 2026Interprets

The court applied the nominee’s statutory threshold for an IVA proposed without an interim order. The proposal need only have a reasonable prospect of being approved and implemented and be suitable for creditors’ consideration; it need not be serious and viable in the earlier sense. The proposal met that limited threshold (see paras [42], [48]).

Price & Anor v Davis & Anor

[2014] EWCA Civ 26 · 21 January 2014

The court identified section 256A as another route by which the nominee’s report may lead to an original creditors’ meeting. (see paras [3], [7])

Bramston v Haut

[2012] EWCA Civ 1637 · 14 December 2012

The bankrupt’s earlier proposal had used the non-interim-order procedure. It therefore did not constitute a previous interim-order application within the statutory 12-month restriction. The later purported nominee’s report nevertheless failed to meet the applicable requirements. (see paras [62]-[63])

What each judgment says about section 256A is in the case-law panel in the full Act.

Amendments and notes

10 notes from legislation.gov.uk

Amendments

  1. F589Cross-heading preceding s. 256A, s. 256A and cross-heading before s. 257 inserted (1.1.2003) by 2000 c. 39, s. 3, Sch. 3 para. 7; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
  2. F590Words in s. 256A(1) omitted (6.4.2016) by virtue of Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 4(2); S.I. 2016/191, art. 2 (with art. 3)
  3. F591Words in s. 256A(2) substituted (6.4.2010) by The Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010 (S.I. 2010/18), art. 8(1)(a)
  4. F592Words in s. 256A(3) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 4(3); S.I. 2016/191, art. 2 (with art. 3)
  5. F593Words in s. 256A(3) substituted (6.4.2010) by The Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010 (S.I. 2010/18), art. 8(1)(b)
  6. F594Word in s. 256A(3)(a) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 62(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
  7. F595Words in s. 256A(3)(b) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 62(3)(a); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
  8. F596Word in s. 256A(3)(b) omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 62(3)(b); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
  9. F597S. 256A(3)(c) omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 62(4); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)

Modifications

  1. C922S. 256A restricted (24.3.2022) by Commercial Rent (Coronavirus) Act 2022 (c. 12), ss. 25(2)(b), 31(4) (with s. 30)