Section 257

This section applies where it has been reported to the court under section 256 or to the debtor's creditors under section 256A that the debtor's creditors should consider the debtor's proposal. The nominee (or the nominee's replacement under section 256(3) or 256A(4)) must seek a decision from the debtor's creditors as to whether they approve the proposed voluntary arrangement (unless, in the case of a report to which section 256 applies, the court otherwise directs). The decision is to be made by a creditors' decision procedure. Notice of the creditors' decision procedure must be given to every creditor of the debtor of whose claim and address the nominee (or the nominee's replacement) is aware. For this purpose the creditors of a debtor who is an undischarged bankrupt include— every person who is a creditor of the bankrupt in respect of a bankruptcy debt, and every person who would be such a creditor if the bankruptcy had commenced on the date on which notice of the creditors' decision procedure is given.

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Source: legislation.gov.uk · retrieved 2026-09-04