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Section 256: Nominee's report on debtor's proposal.

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part VIII: Individual Voluntary Arrangements

Where an interim order has been made on an application under section 253, the nominee shall, before the order ceases to have effect, submit a report to the court stating—

whether, in his opinion, the voluntary arrangement which the debtor is proposing has a reasonable prospect of being approved and implemented, and
whether, in his opinion, the debtor's creditors should consider the debtors' proposal ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For the purpose of enabling the nominee to prepare his report the debtor shall submit to the nominee—

a document setting out the terms of the voluntary arrangement which the debtor is proposing, and
a statement of his affairs containing—
such particulars of his creditors and of his debts and other liabilities and of his assets as may be prescribed, and
such other information as may be prescribed.

The court may—

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
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.

The court may, on an application made by the debtor in a case where the nominee has failed to submit the report required by this section, direct that the interim order shall continue, or (if it has ceased to have effect) be renewed, for such further period as the court may specify in the direction.

The court may, on the application of the nominee, extend the period for which the interim order has effect so as to enable the nominee to have more time to prepare his report.

If the court is satisfied on receiving the nominee's report that the debtor's creditors should consider the debtor's proposal, the court shall direct that the period for which the interim order has effect shall be extended, for such further period as it may specify in the direction, for the purpose of enabling the debtor's proposal to be considered by his creditors in accordance with the following provisions of this Part.

The court may discharge the interim order if it is satisfied, on the application of the nominee—

that the debtor has failed to comply with his obligations under subsection (2), or
that for any other reason it would be inappropriate for the debtor's creditors to consider the debtor's proposal.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.