The Housing Administration (England and Wales) Rules 2018

CHAPTER 10 Delivery of documents and opting out

Delivery to the creditors and opting out

7.48.—(1) Where the Act or a rule requires a housing administrator to deliver a document to the creditors, or the creditors in a class, the requirement is satisfied by the delivery of the document to all such creditors of whose address the housing administrator is aware other than opted-out creditors (where the opt out applies).

(2) Where a creditor has opted out from receiving documents, the opt out does not apply to—

(a) a notice which the Act requires to be delivered to all creditors without expressly excluding opted-out creditors;

(b) a notice of a change in the housing administrator or the contact details for the housing administrator;

(c) a notice as provided for by section 246C(2) of the Act; or

(d) a document which these Rules require to accompany a notice within sub-paragraphs (a) to (c).

(3) The housing administrator must begin to treat a creditor as an opted-out creditor as soon as reasonably practicable after delivery of the creditor’s election to opt out.

Creditor’s election to opt out

7.49.—(1) A creditor may at any time elect to be an opted-out creditor.

(2) The creditor’s election to opt out must be by a notice in writing authenticated and dated by the creditor.

(3) The creditor must deliver the notice to the housing administrator.

(4) A creditor becomes an opted-out creditor when the notice is delivered to the housing administrator.

(5) An opted-out creditor—

(a) will remain an opted-out creditor for the duration of the proceedings unless the opt out is revoked; and

(b) is deemed to be an opted-out creditor in respect of any subsequent insolvency proceedings of a different kind relating to that registered provider.

(6) The creditor may at any time revoke the election to opt out by a further notice in writing, authenticated and dated by the creditor and delivered to the housing administrator.

(7) The creditor ceases to be an opted-out creditor from the date the notice is received by the housing administrator.

Housing administrator to provide information to creditors on opting-out

7.50.—(1) The housing administrator must, in the first communication with a creditor, inform the creditor in writing that the creditor may elect to opt out of receiving further documents relating to the proceedings.

(2) The communication must contain—

(a) identification and contact details for the housing administrator;

(b) a statement that the creditor has the right to elect to opt out of receiving further documents about the proceedings unless—

(i) the Act requires a document to be delivered to all creditors without expressly excluding opted-out creditors,

(ii) it is a notice relating to a change in the housing administrator or the housing administrator’s contact details, or

(iii) it is a notice of a dividend or proposed dividend or a notice which the court orders to be sent to all creditors or all creditors of a particular category to which the creditor belongs;

(c) a statement that opting-out will not affect the creditor’s entitlement to receive dividends should any be paid to creditors;

(d) a statement that unless these Rules provide to the contrary opting-out will not affect any right the creditor may have to vote in a decision procedure or a participate in a deemed consent procedure in the proceedings although the creditor will not receive notice of it;

(e) a statement that a creditor who opts out will be treated as having opted out in respect of any consecutive insolvency proceedings of a different kind in respect of the same registered provider; and

(f) information about how the creditor may elect to be or cease to be an opted-out creditor.