# Bankruptcy and Debt Advice (Scotland) Act 2014 (repealed)

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# Bankruptcy and Debt Advice (Scotland) Act 2014

# 2014 asp 11                     

The Bill for this Act of the Scottish Parliament was passed by the Parliament on 20th March 2014 and received Royal Assent                        on 29th April 2014                     

An Act of the Scottish Parliament to amend the Bankruptcy (Scotland) Act 1985; and for connected purposes.

## Advice and educationS

### 1Sequestration of estate of living debtor: money adviceS

(1)In section 5 of the 1985 Act (sequestration of the estate of living or deceased debtor)—                  

(a)in subsection (2B), after paragraph (b), insert—                  

“(ba)the debtor has obtained the advice of a money adviser in accordance with section 5C(1),”, and                  

(b)after subsection (4B), insert—                  

“(4BA)A debtor application must—                  

(a)include a declaration by the money adviser who provided the advice referred to in section 5C(1) that such advice has been                           given, and                  

(b)specify the name and address of the money adviser.”.                  

(2)After section 5B of the 1985 Act, insert—                  

#### “5CMoney advice

(1)An application for the sequestration of a living debtor's estate may not be made unless the debtor has obtained from a money                           adviser—                  

(a)advice on the debtor's financial circumstances,                  

(b)advice on the effect of the proposed sequestration of the debtor's estate,                  

(c)advice on the preparation of the application, and                  

(d)advice on such other matters as may be prescribed.                  

(2)In this Act, “money adviser” means a person who—                  

(a)is not an associate of the debtor, and                  

(b)is of a prescribed description or falls within a prescribed class.”.                  

Commencement Information

I1S. 1(2) in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 2Financial education for debtorS

After section 43A of the 1985 Act, insert—

#### “43BFinancial education

(1)The trustee must notify a living debtor that the debtor is required to undertake a prescribed course of financial education                           (a “financial education course”) specified by the trustee if, in the opinion of the trustee—                  

(a)any of the circumstances mentioned in subsection (2) apply, and                  

(b)undertaking the course would be appropriate for the debtor.                  

(2)The circumstances are—                  

(a)in the period of 5 years ending on the date on which the sequestration of the debtor's estate was awarded—                  

(i)the debtor's estate was sequestrated,                  

(ii)the debtor granted a protected trust deed,                  

(iii)an analogous remedy (within the meaning of section 10(7)) was in force in respect of the debtor, or                  

(iv)the debtor participated in a debt management programme under which the debtor made regular payments (including in particular                           a programme approved in accordance with section 2 of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17)),                  

(b)the debtor is subject to, or under investigation with a view to an application being made for, a bankruptcy restrictions order,                  

(c)the trustee considers that the pattern of the debtor's behaviour, whether before or after the award of sequestration, is such                           that the debtor would benefit from a financial education course,                  

(d)the debtor agrees to undertake a financial education course.                  

(3)The trustee must decide whether to issue a notification under subsection (1)—                  

(a)before the end of the period of 6 months beginning with the date of award of sequestration, and                  

(b)in a case where section 54F applies, as soon as reasonably practicable after the trustee ascertains the whereabouts of the                           debtor or the debtor makes contact with the trustee.                  

(4)A debtor must not be required to undertake or, as the case may be, complete the financial education course specified by the                           trustee if, in the opinion of the trustee—                  

(a)the debtor is unable to participate in the course as a result of the debtor's health (including by reason of disability or                           physical or mental illness), or                  

(b)the debtor has completed a financial education course in the period of 5 years ending on the date on which the sequestration                           of the debtor's estate was awarded.                  

(5)Regulations under subsection (1) may in particular—                  

(a)prescribe the content, format and method of delivery of a course,                  

(b)prescribe different courses for different circumstances,                  

(c)make provision for particular courses to be specified by a trustee where particular circumstances in subsection (2) apply.”.                  

Commencement Information

I2S. 2 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

## Payments by debtor following sequestrationS

### 3Debtor's contribution: common financial toolS

(1)After section 5C of the 1985 Act (inserted by section 1(2)), insert—                  

#### “5DAssessment of debtor's contribution

(1)The Scottish Ministers may by regulations specify a method (the “common financial tool”) to be used to assess an appropriate                           amount of a living debtor's income to be paid to a trustee after the sequestration of the debtor's estate (the “debtor's contribution”).                  

(2)Regulations under subsection (1) may in particular—                  

(a)prescribe a method for assessing a debtor's financial circumstances (including the debtor's assets, income, liabilities and                           expenditure),                  

(b)prescribe a method for determining a reasonable amount of expenditure for a debtor after the sequestration of the debtor's                           estate,                  

(c)prescribe the proportion of a debtor's income that is to constitute the debtor's contribution,                  

(d)prescribe that a method determined by another person is to be used (with or without modification in accordance with regulations                           made under subsection (1)) as the common financial tool.                  

(3)The common financial tool must ensure that the amount of reasonable expenditure for a debtor is not less than the total amount                           of any income received by the debtor by way of guaranteed minimum pension (within the meaning of the Pension Schemes Act 1993                           (c.48)).                  

(4)The common financial tool must ensure that an amount is allowed for—                  

(a)aliment for the debtor,                  

(b)the debtor's relevant obligations.                  

(5)The “debtor's relevant obligations” are—                  

(a)any obligation of aliment owed by the debtor (“obligation of aliment” having the same meaning as in the Family Law (Scotland)                           Act 1985 (c.37)),                  

(b)any obligation of the debtor to make a periodical allowance to a former spouse or former civil partner, and                  

(c)any obligation of the debtor to pay child support maintenance under the Child Support Act 1991 (c.48).                  

(6)The amount allowed for the debtor's relevant obligations referred to in paragraphs (a) and (b) of subsection (5) need not                           be sufficient for compliance with a subsisting order or agreement as regards the aliment or periodical allowance.”.                  

(2)In section 7(2) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) (debt payment programmes: power to make                        further provision), after paragraph (bc) insert—                  

“(bd)the method of assessing the amount of a debtor's assets, income, liabilities and expenditure in considering applications for                           the approval, or the variation, of a debt payment programme,”.                  

Commencement Information

I3S. 3 in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.**

### 4Debtor contribution orderS

After section 32 of the 1985 Act, insert—

#### “32ADebtor contribution order

(1)The Accountant in Bankruptcy must make an order fixing the debtor's contribution (a “debtor contribution order”)—                  

(a)in the case of a debtor application, at the same time as awarding sequestration of the debtor's estate,                  

(b)in the case of an award of sequestration following a petition under section 5(2)(b), after considering initial proposals for                           the debtor's contribution provided by the trustee.                  

(2)In a case referred to in subsection (1)(b), the trustee must send initial proposals for the debtor's contribution before the                           end of the period of 6 weeks beginning with the date of award of sequestration.                  

(3)In making a debtor contribution order, the Accountant in Bankruptcy must use the common financial tool to assess the debtor's                           contribution.                  

(4)A debtor contribution order may fix the amount of the debtor's contribution as zero.                  

(5)A debtor contribution order may be made irrespective of sections 11 and 12 of the Welfare Reform and Pensions Act 1999 (c.30).                  

(6)A debtor contribution order may provide that a third person is to pay to the trustee a specified proportion of money due to                           the debtor by way of income.                  

(7)Where a third person pays a sum of money to the trustee in accordance with subsection (6), the third person is discharged                           from any liability to the debtor to the extent of the sum so paid.                  

(8)The Accountant in Bankruptcy must, immediately following the making of a debtor contribution order, give written notice of                           the order to—                  

(a)the debtor,                  

(b)the trustee, and                  

(c)any third person mentioned in the order.                  

(9)A debtor contribution order must not take effect on a date before the expiry of the period of 14 days beginning with the day                           of notification of the order.                  

#### 32BDebtor contribution order: payment period and intervals

(1)A debtor contribution order must contain provision requiring the debtor to pay the debtor's contribution (if not zero)—                  

(a)during the payment period, and                  

(b)at regular intervals determined by the person making or varying the order.                  

(2)In subsection (1)(a), “payment period” means—                  

(a)the period of 48 months beginning with the date of the first payment,                  

(b)such shorter period as is determined by the person making or varying the order, or                  

(c)such longer period as is—                  

(i)determined by the trustee where there is a period during which the debtor did not pay an amount required under the debtor                           contribution order, or                  

(ii)agreed by the debtor and the trustee.                  

(3)The person making or varying the order may determine a shorter period under subsection (2)(b) only if, in the opinion of that                           person, the value of—                  

(a)the debtor's contribution during the shorter period, and                  

(b)any other estate of the debtor taken possession of by the trustee,                  

would be sufficient to allow a distribution of the debtor's estate to meet in full all of the debts mentioned in section 51.                  

(4)The Accountant in Bankruptcy must, when making an order under section 32A—                  

(a)determine the date of the first payment, or                  

(b)in a case where the debtor's contribution is fixed as zero, determine the date which is to be deemed as the date of the first                           payment under the order.                  

#### 32CDebtor contribution order: review and appeal

(1)The debtor, the trustee or any other interested person may apply to the Accountant in Bankruptcy for a review of a debtor                           contribution order made by the Accountant in Bankruptcy under section 32A.                  

(2)An application under subsection (1) must be made before the expiry of the period of 14 days beginning with the day on which                           the debtor contribution order is made.                  

(3)If an application under subsection (1) is made, the debtor contribution order is suspended until the determination of that                           review by the Accountant in Bankruptcy.                  

(4)If an application for a review under subsection (1) is made, the Accountant in Bankruptcy must—                  

(a)take into account any representations made by an interested person before the expiry of the period of 21 days beginning with                           the day on which the application is made, and                  

(b)confirm, amend or revoke the debtor contribution order before the expiry of the period of 28 days beginning with the day on                           which the application is made.                  

(5)The trustee or the debtor may appeal to the sheriff against any decision of the Accountant in Bankruptcy under subsection                           (4)(b) before the expiry of the period of 14 days beginning with the date of the decision.                  

#### 32DEffect of debtor contribution order

(1)The debtor must pay to the trustee any debtor's contribution which is not zero as—                  

(a)fixed by the Accountant in Bankruptcy in making the debtor contribution order, or                  

(b)varied in accordance with section 32F.                  

(2)The requirement to pay the debtor's contribution applies irrespective of the debtor's discharge.                  

(3)If the value of the debtor's estate and income when taken possession of by the trustee is sufficient to allow a distribution                           of the debtor's estate to meet in full all of the debts mentioned in section 51, any debtor contribution order ceases to have                           effect.                  

#### 32EDeductions from debtor's earnings and other income

(1)Subsections (2) to (6) apply where under a debtor contribution order—                  

(a)the debtor is required to pay to the trustee an amount from the debtor's earnings or other income, or                  

(b)in accordance with section 32A(6), a third person is required to pay to the trustee money otherwise due to the debtor by way                           of income.                  

(2)The debtor must give the person mentioned in subsection (3) an instruction to make—                  

(a)deductions of specified amounts from the debtor's earnings or other income, and                  

(b)payments to the trustee of the amounts so deducted.                  

(3)The person mentioned is—                  

(a)in the case of an amount to be paid from the debtor's earnings from employment, the person by whom the debtor is employed,                  

(b)in the case of an amount to be paid from other earnings or income of the debtor, a third person who is required to pay the                           earnings or income to the debtor, and                  

(c)in the case mentioned in subsection (1)(b), the third person who is required to pay the income to the trustee.                  

(4)The trustee may give the person mentioned in subsection (3) an instruction of the type mentioned in subsection (2) if—                  

(a)the debtor fails to comply with the requirements imposed by that subsection, and                  

(b)the debtor fails to pay the debtor's contribution in respect of 2 payment intervals applying by virtue of the debtor contribution                           order.                  

(5)A person mentioned in subsection (3) must comply with an instruction provided in accordance with subsection (2) or (4).                  

(6)Where the person by whom the debtor is employed or another third person pays a sum of money to the trustee in accordance with                           this section, that person is discharged from any liability to the debtor to the extent of the sum so paid.                  

(7)The Scottish Ministers may by regulations make provision about instructions to be provided under this section, including in                           particular—                  

(a)the form in which an instruction must be made,                  

(b)the manner in which an instruction provided in accordance with subsection (2) or (4) affects the recipient of that instruction,                           and                  

(c)the consequence of any failure of a recipient of an instruction provided in accordance with subsection (2) or (4) to comply                           with the duty imposed by subsection (5).                  

#### 32FVariation and removal of debtor contribution order by trustee

(1)The trustee may vary or quash a debtor contribution order—                  

(a)on the application of the debtor, following any change in the debtor's circumstances,                  

(b)if the trustee considers it to be appropriate, following any change in the debtor's circumstances, or                  

(c)if the trustee considers it to be appropriate when—                  

(i)sending a report to the Accountant in Bankruptcy under section 54(4), or                  

(ii)granting a discharge under section 54A(2).                  

(2)In deciding whether to vary or quash a debtor contribution order, the trustee must use the common financial tool to assess                           the debtor's contribution.                  

(3)A decision by the trustee under subsection (1)(b) must not take effect on a day before the end of the period of 14 days beginning                           with the day on which the decision is made.                  

(4)The trustee must notify in writing the persons mentioned in subsection (5) immediately following—                  

(a)any variation or quashing of a debtor contribution order,                  

(b)any refusal of an application.                  

(5)The persons are—                  

(a)the debtor,                  

(b)the Accountant in Bankruptcy (if the trustee is not the Accountant in Bankruptcy),                  

(c)any third person required to make a payment under the debtor contribution order or under section 32E(5), and                  

(d)any other interested person.                  

#### 32GPayment break

(1)The trustee may, on the application of the debtor, extend the payment period of a debtor contribution order by granting a                           payment break.                  

(2)A “payment break” is a period not exceeding 6 months during which payments under the debtor contribution order are deferred.                  

(3)A debtor may apply for a payment break if—                  

(a)there has been a reduction of at least 50% in the debtor's disposable income (as determined using the common financial tool)                           as a result of any of the circumstances mentioned in subsection (4) arising in relation to the debtor, and                  

(b)the debtor has not previously applied for a payment break in relation to a debtor contribution order applying after the sequestration                           of the debtor's estate.                  

(4)The circumstances are—                  

(a)a period of unemployment or change in employment,                  

(b)a period of leave from employment because of the birth or adoption of a child or the need to care for a dependant,                  

(c)a period of illness of the debtor,                  

(d)a divorce or dissolution of civil partnership,                  

(e)a separation from a person to whom the debtor is married or is the civil partner,                  

(f)the death of a person who, along with the debtor, cared for a dependant of the debtor.                  

(5)An application for a payment break must specify the period during which the debtor wishes payments to be deferred.                  

(6)If, in the opinion of the trustee, a payment break is fair and reasonable, the trustee may grant a payment break on such conditions                           and for such period as the trustee thinks fit.                  

(7)The trustee must notify in writing the grant of a payment break to—                  

(a)the debtor,                  

(b)the Accountant in Bankruptcy (if the trustee is not the Accountant in Bankruptcy), and                  

(c)any third person required to make a payment under the debtor contribution order.                  

(8)If the trustee decides not to grant a payment break, the trustee must notify the debtor of that decision and of the reasons.                  

(9)The payment period in a debtor contribution order is deemed to be varied by the addition to the period of any payment break                           granted under this section.                  

#### 32HSections 32F and 32G: review and appeal

(1)The debtor or any other interested person may apply to the Accountant in Bankruptcy for a review of a decision by the trustee                           under section 32F or 32G.                  

(2)An application under subsection (1) must be made before the expiry of the period of 14 days beginning with the day on which                           the decision is made.                  

(3)If an application under subsection (1) relates to a decision by the trustee under section 32F(1)(b), the decision is suspended                           until the determination of that review by the Accountant in Bankruptcy.                  

(4)If an application for a review under subsection (1) is made, the Accountant in Bankruptcy must—                  

(a)take into account any representations made by an interested person before the expiry of the period of 21 days beginning with                           the day on which the application is made, and                  

(b)confirm, amend or revoke the decision before the expiry of the period of 28 days beginning with the day on which the application                           is made.                  

(5)The trustee or the debtor may appeal to the sheriff against any decision of the Accountant in Bankruptcy under subsection                           (4)(b) before the expiry of the period of 14 days beginning with the date of the decision.”.                  

Commencement Information

I4S. 4 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

## Sequestration where debtor has few assetsS

### 5Debtor applicationS

(1)In section 5 of the 1985 Act (sequestration of the estate of living or deceased debtor)—                  

(a)in subsection (2)(a), after “subsection” insert “ (2ZA) or ”, and                  

(b)after subsection (2), insert—                  

“(2ZA)This subsection applies to the debtor where—                  

(a)the debtor—                  

(i)has been assessed by the common financial tool as requiring to make no debtor's contribution, or                  

(ii)has been in receipt of a prescribed payment for a period of at least 6 months ending with the day on which the application                           is made,                  

(b)the total amount of the debtor's debts (including interest) at the date the debtor application is made is—                  

(i)not less than £1500 or such other sum as may be prescribed, and                  

(ii)no more than £17000 or such other sum as may be prescribed,                  

(c)the total value of the debtor's assets (leaving out of account any liabilities) on the date the debtor application is made                           does not exceed £2000 or such other amount as may be prescribed,                  

(d)the value of a single asset of the debtor does not exceed £1000 or such other amount as may be prescribed,                  

(e)the debtor does not own land,                  

(f)within the prescribed period, the debtor has been granted a certificate for sequestration of the debtor's estate in accordance                           with section 5B,                  

(g)in the period of 10 years ending on the day before the day on which the debtor application is made or such other period as                           may be prescribed no award of sequestration has been made against the debtor in pursuance of an application made by the debtor                           by virtue of this subsection, and                  

(h)in the period of 5 years ending on the day before the day on which the debtor application is made no award of sequestration                           has been made against the debtor in pursuance of—                  

(i)an application made by the debtor other than by virtue of this subsection, or                  

(ii)a petition.                  

(2ZB)For the purposes of subsection (2ZA)(c) and (d)—                  

(a)any property of the debtor is not to be regarded as an asset if, under any provision of this or any other enactment, it would                           be excluded from vesting in the Accountant in Bankruptcy as trustee,                  

(b)if the debtor reasonably requires the use of a vehicle, any vehicle owned by the debtor the value of which does not exceed                           £3000 or such other amount as may be prescribed is not to be regarded as an asset,                  

(c)any other property of the debtor that is of a prescribed type is not to be regarded as an asset.                  

(2ZC)For the purposes of subsection (2ZA)(c) and (d), the Scottish Ministers may by regulations make provision about how the value                           of the debtor's assets is to be determined.                  

(2ZD)The Scottish Ministers may by regulations modify subsection (2ZA).                  

(2ZE)Schedule A1 to this Act makes further provision about the application of certain provisions of this Act in relation to a debtor                           to whom subsection (2ZA) applies.”.                  

(2)Before Schedule 1 to the 1985 Act, insert the Schedule A1 set out in schedule 1 to this Act.                  

Commencement Information

I5S. 5 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 7Discharge, conditions etc.S

(1)After section 54B of the 1985 Act (inserted by section 17), insert—                  

#### “54CDebtor to whom section 5(2ZA) applies: discharge

(1)Where section 5(2ZA) applies to a debtor, the debtor is discharged on the date which is 6 months after the date on which sequestration                           is awarded.                  

(2)A debtor may, following a discharge, apply to the Accountant in Bankruptcy for a certificate of discharge in the prescribed                           form.”.                  

(2)After section 55 of the 1985 Act, insert—                  

#### “55ADischarge under section 54C: conditions

(1)This section applies where a debtor is discharged under section 54C.                  

(2)During the relevant period the debtor must comply with the condition in subsection (3) before the debtor, either alone or                           jointly with another person, obtains credit—                  

(a)to the extent of £2000 (or such other sum as may be prescribed) or more, or                  

(b)of any amount where, at the time of obtaining credit, the debtor has debts amounting to £1000 (or such other sum as may be                           prescribed) or more.                  

(3)The condition is that the debtor must inform the person who is providing credit to the debtor (or, as the case may be, jointly                           to the debtor and another person) that the debtor is required to comply with the conditions in this section.                  

(4)During the relevant period, the debtor must not engage (whether directly or indirectly) in a business under a name other than                           that to which the discharge relates unless the debtor complies with the condition in subsection (5).                  

(5)The condition is that the debtor must inform any person with whom the debtor enters into any business transaction of the name                           of the business to which the discharge relates.                  

(6)In this section, “relevant period” means the period of 6 months beginning with the date of discharge.                  

#### 55BSection 55A: sanctions

(1)If a debtor fails to comply with the requirement imposed by subsection (2) or (4) of section 55A, that section applies in                           relation to the debtor as if the relevant period were the period of 12 months beginning with the date of discharge of the                           debtor.                  

(2)If a debtor fails to comply with the requirement imposed by subsection (2) or (4) of section 55A during the period when the                           section applies in relation to the debtor by virtue of subsection (1), the debtor commits an offence.                  

(3)A debtor who is guilty of an offence under subsection (2) is liable on summary conviction to—                  

(a)a fine not exceeding the statutory maximum,                  

(b)imprisonment for—                  

(i)a term not exceeding 3 months, or                  

(ii)a term not exceeding 6 months, if the person has previously been convicted of an offence inferring dishonest appropriation                           of property or an attempt at such appropriation, or                  

(c)both such fine and imprisonment.                  

(4)A debtor who is guilty of an offence under subsection (2) is liable on conviction on indictment to—                  

(a)a fine,                  

(b)imprisonment for a term not exceeding 2 years, or                  

(c)both such fine and imprisonment.”.                  

Commencement Information

I6S. 7 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

## Application for sequestrationS

### 9Statement of undertakingsS

(1)In section 2 of the 1985 Act (appointment and functions of the trustee in the sequestration), after subsection (7), insert—                  

“(8)The trustee must at the same time as notifying the debtor under subsection (7)(a) or (b), send to the debtor, for signature                           by the debtor, a statement of undertakings in the form prescribed.”.                  

(2)In section 5 of the 1985 Act (sequestration of the estate of living or deceased debtor)—                  

(a)in subsection (2B), after paragraph (ba) (inserted by section 1(1)(a)), insert—                  

“(bb)the debtor has given a statement of undertakings (including an undertaking to pay to the trustee after the award of sequestration                           of the debtor's estate an amount determined using the common financial tool),”, and                  

(b)after subsection (6A), insert—                  

“(6B)In the case of a debtor application, the debtor must send a statement of undertakings to the Accountant in Bankruptcy along                           with the application.”.                  

Commencement Information

I7S. 9(1) in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## Discharge following sequestrationS

### 17Discharge of debtorS

For section 54 of the 1985 Act (automatic discharge of debtor) substitute—

#### “54Discharge where Accountant in Bankruptcy not the trustee

(1)This section applies where the Accountant in Bankruptcy is not the trustee.                  

(2)The Accountant in Bankruptcy may discharge the debtor at any time after the date which is 12 months after the date on which                           sequestration is awarded by granting a certificate of discharge in the prescribed form.                  

(3)Before deciding whether to discharge the debtor under subsection (2), the Accountant in Bankruptcy must—                  

(a)consider the report provided by the trustee under subsection (4), and                  

(b)take into account any representations received during the period mentioned in subsection (6)(b).                  

(4)The trustee must prepare and send a report to the Accountant in Bankruptcy—                  

(a)without delay after the date which is 10 months after the date on which sequestration is awarded, and                  

(b)if the debtor is not otherwise discharged, before sending to the Accountant in Bankruptcy the documentation referred to in                           section 57(1)(b).                  

(5)The report must include—                  

(a)information about—                  

(i)the debtor's assets, liabilities, financial affairs and business affairs,                  

(ii)the debtor's conduct in relation to those assets, liabilities, financial affairs and business affairs,                  

(iii)the sequestration, and                  

(iv)the debtor's conduct in the course of the sequestration,                  

(b)a statement of whether, in the opinion of the trustee, the debtor has as at the date of the report—                  

(i)complied with any debtor contribution order,                  

(ii)co-operated with the trustee in accordance with section 64,                  

(iii)complied with the statement of undertakings,                  

(iv)made a full and fair surrender of the debtor's estate,                  

(v)made a full disclosure of all claims which the debtor is entitled to make against other persons, and                  

(vi)delivered to the trustee every document under the debtor's control relating to the debtor's estate, business or financial                           affairs, and                  

(c)a statement of whether the trustee has, as at the date that the report is sent to the Accountant in Bankruptcy, carried out                           all of the trustee's functions in accordance with section 3.                  

(6)The trustee must, at the same time as sending a report to the Accountant in Bankruptcy under this section, give to the debtor                           and every creditor known to the trustee—                  

(a)a copy of the report, and                  

(b)a notice informing the recipient that the person has a right to make representations to the Accountant in Bankruptcy in relation                           to the report before the expiry of the period of 28 days beginning with the day on which the notice is given.                  

(7)A discharge under this section must not take effect before the end of the period of 14 days beginning with the day of notification                           of the decision.                  

#### 54ADischarge where Accountant in Bankruptcy the trustee

(1)This section applies where the Accountant in Bankruptcy is the trustee.                  

(2)The Accountant in Bankruptcy may discharge the debtor at any time after the date which is 12 months after the date on which                           sequestration is awarded by granting a certificate of discharge in the prescribed form.                  

(3)The Accountant in Bankruptcy must, as soon as is practicable after the date which is 12 months after the date on which sequestration                           is awarded—                  

(a)decide whether to discharge the debtor under subsection (2),                  

(b)notify the debtor and every creditor known to the Accountant in Bankruptcy of that decision, and                  

(c)send a report to those persons.                  

(4)The report must give an account of—                  

(a)the debtor's assets, liabilities, financial affairs and business affairs,                  

(b)the debtor's conduct in relation to those assets, liabilities, financial affairs and business affairs,                  

(c)the sequestration, and                  

(d)the debtor's conduct in the course of the sequestration, including compliance with the statement of undertakings.                  

(5)Subsection (6) applies where—                  

(a)the Accountant in Bankruptcy refuses to discharge the debtor under subsection (2), and                  

(b)the debtor is not otherwise discharged.                  

(6)The Accountant in Bankruptcy must, as soon as is practicable after the date which is 12 months after the date of the refusal—                  

(a)decide whether to discharge or refuse to discharge the debtor under subsection (2),                  

(b)notify the debtor and every creditor known to the Accountant in Bankruptcy of that decision, and                  

(c)send a report giving an account of the matters mentioned in subsection (4) to those persons.                  

(7)A discharge under this section must not take effect before the end of the period of 14 days beginning with the day of notification                           of the decision.                  

#### 54BDischarge of debtor: review and appeal

(1)The trustee or the debtor may apply to the Accountant in Bankruptcy for a review of a decision under section 54(2) or 54A(2)                           to refuse to discharge the debtor.                  

(2)Any creditor may apply to the Accountant in Bankruptcy for a review of a decision under section 54(2) or 54A(2) to discharge                           the debtor.                  

(3)An application under subsection (1) or (2) must be made before the end of the period of 14 days beginning with the day of                           notification of the decision under section 54(2) or, as the case may be, 54A(2).                  

(4)If an application for a review under subsection (2) is made, the discharge is suspended until the determination of that review                           by the Accountant in Bankruptcy.                  

(5)If an application for a review under subsection (1) or (2) is made, the Accountant in Bankruptcy must—                  

(a)take into account any representations made by an interested person before the expiry of the period of 21 days beginning with                           the day on which the application is made, and                  

(b)confirm or revoke the decision before the expiry of the period of 28 days beginning with the day on which the application                           is made.                  

(6)The debtor, the trustee or any creditor may appeal to the sheriff against any decision of the Accountant in Bankruptcy under                           subsection (5)(b) before the end of the period of 14 days beginning with the date of the decision.”.                  

Commencement Information

I8S. 17 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 19Deferral of discharge where debtor cannot be tracedS

After section 54C of the 1985 Act (inserted by section 7(1)), insert—

#### “54DDeferral of discharge where debtor cannot be traced

(1)Subsection (2) applies where—                  

(a)the trustee, having made reasonable inquiries, is unable to ascertain the whereabouts of the debtor, and                  

(b)as a result is unable to carry out the trustee's functions in accordance with section 3.                  

(2)The trustee must—                  

(a)notify the debtor by sending to the last known address of the debtor a deferral notice in the prescribed form,                  

(b)give a deferral notice to every creditor known to the trustee, and                  

(c)where the trustee is not the Accountant in Bankruptcy, apply in the prescribed form to the Accountant in Bankruptcy for a                           deferral.                  

(3)A deferral application under subsection (2)(c) must be made by the trustee—                  

(a)no earlier than the date which is 8 months after the date on which sequestration is awarded, and                  

(b)no later than the date which is 10 months after the date on which sequestration is awarded.                  

(4)After receiving a deferral application, the Accountant in Bankruptcy must—                  

(a)take into account any representations made by an interested person before the expiry of the period of 14 days beginning with                           the day on which the application is made, and                  

(b)if satisfied of the matters mentioned in subsection (5), issue a certificate deferring indefinitely the discharge of the debtor.                  

(5)The matters are—                  

(a)that the trustee is unable to ascertain the whereabouts of the debtor, and                  

(b)it would not be reasonably practicable for the trustee to continue to search for the debtor.                  

(6)Where the Accountant in Bankruptcy is the trustee and has given a deferral notice in accordance with subsection (2)(b), the                           Accountant in Bankruptcy must—                  

(a)take into account any representations made by an interested person before the expiry of the period of 14 days beginning with                           the day on which the deferral notice is given, and                  

(b)if satisfied that it would not be reasonably practicable to continue to search for the debtor, issue a certificate deferring                           indefinitely the discharge of the debtor.                  

(7)Where a certificate is issued under subsection (4)(b) or (6)(b), the Accountant in Bankruptcy must make an appropriate entry                           in the register of insolvencies.                  

#### 54EDebtor not traced: new trustee

(1)This section applies where a certificate is issued under section 54D(4)(b).                  

(2)The trustee may apply to the Accountant in Bankruptcy in the prescribed form for authority to resign office.                  

(3)An application under subsection (2) must include details of every creditor known to the trustee.                  

(4)An application under subsection (2) may not be made—                  

(a)if after the certificate is issued the trustee ascertains the whereabouts of the debtor or the debtor makes contact with the                           trustee,                  

(b)after the date which is 6 months after the date on which the certificate is awarded.                  

(5)Where an application is made under subsection (2), the Accountant in Bankruptcy must issue to the trustee who made the application                           a notice in the prescribed form granting the application.                  

(6)Where a notice is issued under subsection (5)—                  

(a)the Accountant in Bankruptcy is deemed to be the trustee,                  

(b)the Accountant in Bankruptcy must notify every creditor known to the Accountant in Bankruptcy that the Accountant in Bankruptcy                           is deemed to be the trustee,                  

(c)the former trustee is not entitled to recover outlays and remuneration payable in accordance with section 53 other than by                           a claim in the final distribution of the debtor's estate, and                  

(d)subsections (6) to (8) of section 28 apply in relation to the appointment of the Accountant in Bankruptcy as the new trustee                           as they apply in relation to the appointment of a new trustee under that section.                  

#### 54FDebtor not traced: subsequent debtor contact

(1)This section applies where—                  

(a)a certificate is issued under section 54D(4)(b) or (6)(b), and                  

(b)the trustee ascertains the whereabouts of the debtor or the debtor makes contact with the trustee.                  

(2)Where the Accountant in Bankruptcy is the trustee, the Accountant in Bankruptcy may discharge the debtor at any time after                           the date which is 12 months after the date on which—                  

(a)the whereabouts of the debtor were ascertained, or                  

(b)the debtor made contact with the trustee.                  

(3)Where the Accountant in Bankruptcy is not the trustee, the trustee must prepare and send a report to the Accountant in Bankruptcy                           without delay after the date which is 10 months after the earlier of the date on which—                  

(a)the whereabouts of the debtor were ascertained by the trustee, or                  

(b)the debtor made contact with the trustee.                  

(4)If the trustee sends a report to the Accountant in Bankruptcy under subsection (3)—                  

(a)the report must include the matters included in a report sent to the Accountant in Bankruptcy in accordance with subsection                           (5) of section 54, and                  

(b)subsection (6) of that section applies to the report as it applies to a report sent in accordance with subsection (4) of that                           section.                  

(5)After receiving a report under subsection (3), the Accountant in Bankruptcy may discharge the debtor by granting a certificate                           of discharge in the prescribed form.                  

(6)Before deciding whether to discharge the debtor under subsection (5), the Accountant in Bankruptcy must—                  

(a)consider the report prepared by the trustee under subsection (3), and                  

(b)take into account any representations received during the period mentioned in subsection (6) of section 54 (as applied in                           accordance with subsection (4)).                  

(7)A discharge under subsection (2) or (5) must not take effect on a date before the end of the period of 14 days beginning with                           the day of notification of the decision.                  

(8)A discharge under subsection (2) or (5) is deemed for the purposes of section 55 to have been given under section 54(2).                  

#### 54GSubsequent debtor contact: review and appeal

(1)The debtor may apply to the Accountant in Bankruptcy for a review of a decision under section 54F(2) or (5) to refuse to discharge                           the debtor.                  

(2)Any creditor may apply to the Accountant in Bankruptcy for a review of a decision under section 54F(2) or (5) to discharge                           the debtor.                  

(3)An application under subsection (1) or (2) must be made before the end of the period of 14 days beginning with the day of                           notification of the decision under section 54F(2) or, as the case may be, 54F(5).                  

(4)If an application for a review under subsection (2) is made, the discharge is suspended until the determination of that review                           by the Accountant in Bankruptcy.                  

(5)If an application for a review under subsection (1) or (2) is made, the Accountant in Bankruptcy must—                  

(a)take into account any representations made by an interested person before the expiry of the period of 21 days beginning with                           the day on which the application is made, and                  

(b)confirm or revoke the decision before the expiry of the period of 28 days beginning with the day on which the application                           is made.                  

(6)The debtor, the trustee or any creditor may appeal to the sheriff against any decision of the Accountant in Bankruptcy under                           subsection (5)(b) before the end of the period of 14 days beginning with the date of the decision.”.                  

Commencement Information

I9S. 19 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 21Assets discovered after trustee discharge: appointment of trusteeS

After section 58A of the 1985 Act, insert—

#### “58BAssets discovered after trustee discharge: appointment of trustee

(1)This section applies where, after the trustee's discharge under section 57 or 58A but before the expiry of the period of 5                           years from the date of sequestration, the trustee or the Accountant in Bankruptcy becomes aware of any newly identified estate                           with a value of not less than £1000 (or such other sum as may be prescribed).                  

(2)In this section, “newly identified estate” means any part of the debtor's estate which—                  

(a)vested in the trustee in accordance with section 31 or 32, and                  

(b)was not, before the trustee was discharged, known to the trustee.                  

(3)The Accountant in Bankruptcy may—                  

(a)in the case where the trustee was discharged under section 57—                  

(i)on the application of the trustee who was discharged, reappoint that person as trustee on the debtor's estate, or                  

(ii)appoint the Accountant in Bankruptcy as trustee on the debtor's estate,                  

(b)in the case where the Accountant in Bankruptcy was discharged under section 58A, reappoint the Accountant in Bankruptcy as                           trustee on the debtor's estate.                  

(4)The Accountant in Bankruptcy may make an appointment or reappointment under subsection (3) only if, in the opinion of the                           Accountant in Bankruptcy, the value of the newly identified estate is likely to exceed the costs of—                  

(a)the appointment or reappointment, and                  

(b)the recovery, management, realisation and distribution of the newly identified estate.                  

(5)Where the trustee was discharged under section 57 and applies for reappointment under subsection (3)(a)(i), the discharged                           trustee must provide to the Accountant in Bankruptcy the information mentioned in subsection (8)(a) to (c).                  

(6)Where the trustee was discharged under section 57 and does not apply for reappointment under subsection (3)(a)(i), the discharged                           trustee must—                  

(a)provide to the Accountant in Bankruptcy details of any newly identified estate that the discharged trustee becomes aware of,                           where that estate has a value which is not less than the value mentioned in subsection (1), and                  

(b)if requested by the Accountant in Bankruptcy, provide to the Accountant in Bankruptcy the information mentioned in subsection                           (8)(b) and (c).                  

(7)Where the Accountant in Bankruptcy was discharged under section 58A, the Accountant in Bankruptcy must record and consider                           the information mentioned in subsection (8).                  

(8)The information is—                  

(a)the estimated value of the newly identified estate,                  

(b)the reason why the newly identified estate forms part of the debtor's estate,                  

(c)the reason why the newly identified estate was not recovered,                  

(d)the estimated outlays and remuneration of the trustee following an appointment or reappointment under subsection (3), and                  

(e)the likely distribution under section 51 following an appointment or reappointment under subsection (3).                  

(9)This section is without prejudice to any other right to take action following the discharge of the trustee.                  

#### 58CAssets discovered after trustee discharge: notice

(1)The Accountant in Bankruptcy must notify the debtor and any other person the Accountant in Bankruptcy considers to have an                           interest—                  

(a)where an application is made under section 58B(3)(a)(i), and                  

(b)where the Accountant in Bankruptcy proposes to make an appointment or reappointment under section 58B(3)(a)(ii) or (b).                  

(2)A notice under subsection (1) must inform the recipient that the person has a right to make representations to the Accountant                           in Bankruptcy in relation to the application or the proposed appointment or reappointment before the expiry of the period                           of 14 days beginning with the day on which the notice is given.                  

(3)Before making an appointment or reappointment under section 58B, the Accountant in Bankruptcy must take into account any representations                           made by an interested person.                  

(4)If the Accountant in Bankruptcy makes an appointment or reappointment under section 58B, the Accountant in Bankruptcy must                           as soon as is practicable notify the debtor of the appointment or reappointment.                  

(5)A notice under subsection (4) must include information in relation to the debtor's duties to co-operate with the trustee under                           section 64.                  

#### 58DAssets discovered after trustee discharge: appeal

Where the Accountant in Bankruptcy makes or refuses to make an order under section 58B, an interested person may, no later                        than 14 days after the date of the decision, appeal to the sheriff.”.                  

Commencement Information

I10S. 21 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

## RecordsS

### 22Register of insolvenciesS

In section 1A of the 1985 Act (supervisory functions of the Accountant in Bankruptcy)—

(a)in subsection (1)(b)—                  

(i)for “the Court of Session by act of sederunt” substitute “ regulations made by the Scottish Ministers ”, and                  

(ii)after paragraph (iii), insert “, and                   

(iv)any other document as may be specified in regulations made under this subsection or any other enactment.”, and                  

(b)after subsection (4), insert—                  

“(5)Regulations under subsection (1)(b) may in particular prescribe circumstances where information need not be included in the                           register of insolvencies, if in the opinion of the Accountant in Bankruptcy inclusion of the information would be likely to                           jeopardise the safety or welfare of any person.”.                  

Commencement Information

I11S. 22 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 23Sederunt bookS

(1)In section 57 of the 1985 Act (discharge of trustee)—                  

(a)in subsection (1)(b), after “book” insert “ in the format specified by subsection (1A) and ”,                  

(b)after subsection (1), insert—                  

“(1A)The trustee must send an electronic version of the sederunt book in such format as the Accountant in Bankruptcy may from time                           to time direct.”, and                  

(c)in subsection (2)(b), for “at the office of the Accountant in Bankruptcy” substitute “ following a request made to the Accountant in Bankruptcy ”.                  

(2)In section 58A(4)(b)(ii) of the 1985 Act (notice on sederunt book sent on discharge of Accountant in Bankruptcy as trustee),                        for “at such address as the Accountant in Bankruptcy may determine” substitute “ following a request made to the Accountant in Bankruptcy ”.                  

(3)In section 62 of the 1985 Act (sederunt book and other documents)—                  

(a)in subsection (2), for “Court of Session may by act of sederunt” substitute “ the Scottish Ministers may by regulations ”, and                  

(b)after that subsection, insert—                  

“(2A)The trustee must insert in the sederunt book the information listed in Schedule 3A to this Act.                  

(2B)The Scottish Ministers may by regulations modify Schedule 3A.”.                  

(4)After Schedule 3 to the 1985 Act insert the Schedule 3A set out in schedule 2 to this Act.                  

Commencement Information

I12S. 23(1)(3) in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## Functions of sheriff and Accountant in Bankruptcy in sequestrationS

### 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 36Regulations: applications to Accountant in Bankruptcy etc.S

After section 71B of the 1985 Act, insert—

#### “71CRegulations: applications to Accountant in Bankruptcy etc.

(1)The Scottish Ministers may, by regulations, make provision in relation to the procedure to be followed in relation to—                  

(a)an application to the Accountant in Bankruptcy under this Act,                  

(b)an application to the Accountant in Bankruptcy for a review under this Act,                  

(c)any other decision made by the Accountant in Bankruptcy under this Act.                  

(2)In this section “decision” includes any appointment, determination, direction, award, acceptance, rejection, adjudication, requirement, declaration,                           order or valuation made by the Accountant in Bankruptcy.                  

(3)Regulations under subsection (1) may in particular make provision for or in connection with—                  

(a)the procedure to be followed by the person making an application,                  

(b)the form of any report or other document that may be required for the purposes of an application or a decision,                  

(c)the form of a statement of undertakings that must be given by the debtor when making a debtor application,                  

(d)time limits applying in relation to the procedure,                  

(e)the procedure to be followed in connection with the production and recovery of documents relating to an application or a decision,                  

(f)the procedure to be followed (including provision about those entitled to participate) in determining an application or making                           a decision, and                  

(g)the procedure to be followed after an application is determined or a decision is made.                  

(4)Regulations under subsection (1) may—                  

(a)include such supplementary, incidental or consequential provision as the Scottish Ministers consider appropriate,                  

(b)modify any enactment (including this Act).”.                  

Commencement Information

I14S. 36 in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.**

### 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## Miscellaneous amendmentsS

### 44Representation of Accountant in Bankruptcy in sheriff courtS

After section 1C of the 1985 Act insert—

#### “1DConduct of proceedings in the sheriff court

(1)A person authorised by the Accountant in Bankruptcy may conduct civil proceedings in the sheriff court in relation to a function                           of the Accountant in Bankruptcy (including the functions listed in section 1A).                  

(2)In subsection (1), “civil proceedings” are proceedings which are not in respect of an offence.”.                  

Commencement Information

I15S. 44 in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.**

### 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 46Time limits for sequestration of limited partnershipS

(1)In section 8 of the 1985 Act (further provisions relating to presentation of petitions), for subsection (2) substitute—                  

“(2)A petition for the sequestration of the estate of a limited partnership may be presented—                  

(a)by a qualified creditor or qualified creditors only if the apparent insolvency founded on in the petition was constituted                           within 4 months (or such other period as may be prescribed) before the date of presentation of the petition, or                  

(b)at any time by—                  

(i)a temporary administrator,                  

(ii)a member State liquidator appointed in main proceedings, or                  

(iii)a trustee acting under a trust deed.”.                  

(2)In section 8A of the 1985 Act (further provisions relating to debtor applications), for subsection (2) substitute—                  

“(2)A debtor application made in relation to the estate of a limited partnership may be made—                  

(a)at any time, or                  

(b)within such time as may be prescribed.”.                  

Commencement Information

I16S. 46 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 48Effect of sequestration: renewal of period of inhibition etc.S

In section 14 of the 1985 Act (registration of warrant or determination of debtor application), for subsection (4) substitute—

“(4)The trustee may, if not discharged, send a memorandum in a form prescribed by the Court of Session by act of sederunt to the                           Keeper of the Register of Inhibitions for recording in that register before the expiry of—                  

(a)the period of 3 years mentioned in subsection (3)(b), or                  

(b)a period for which the effect mentioned in subsection (2) has been renewed by virtue of subsection (4A).                  

(4A)The recording of a memorandum sent in accordance with subsection (4) renews the effect mentioned in subsection (2) for a period                           of 3 years beginning with the expiry of—                  

(a)the period mentioned in subsection (3)(b), or                  

(b)as the case may be, the period mentioned in subsection (4)(b).                  

(4B)The trustee may, if appointed or reappointed under section 58B, send a memorandum in a form prescribed by the Court of Session                           by act of sederunt to the Keeper of the Register of Inhibitions for recording in that register before the expiry of that appointment.                  

(4C)The recording of a memorandum sent in accordance with subsection (4B) imposes the effect mentioned in subsection (2) for a                           period of 3 years beginning with the day of notification in accordance with section 58C(1).”.                  

Commencement Information

I17S. 48 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 53Debt arrangement schemes: extension to non-natural persons and feesS

(1)The Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) is amended as follows.                  

(2)In section 1 (debt arrangement scheme), for “individuals” substitute “ persons ”.                  

(3)In section 7(2) (debt payment programmes: power to make further provision), after paragraph (ua) insert—                  

“(ub)the remuneration of payments distributors and money advisers,”.                  

(4)Section 9(2) is repealed.                  

Commencement Information

I18S. 53(1)(2)(4) in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.** (with art. 3)

I19S. 53(3) in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.** (with art. 3)

## GeneralS

### 54Meaning of “the 1985 Act”S

In this Act, “the 1985 Act” means the Bankruptcy (Scotland) Act 1985 (c.66).                  

### 55Ancillary provisionS

(1)The Scottish Ministers may by order make such supplementary, incidental, consequential, transitional or transitory provision                        or savings as they consider necessary or expedient for the purposes of, or in connection with, any provision made by or under                        this Act.                  

(2)The power of Scottish Ministers to make an order under subsection (1) includes power to make different provision for different                        purposes.                  

(3)An order under subsection (1) may modify any enactment (including this Act).                  

(4)An order under subsection (1) containing provisions which add to, replace or omit any part of the text of an Act is subject                        to the affirmative procedure.                  

(5)Otherwise, an order under subsection (1) is subject to the negative procedure.                  

### 56Minor and consequential amendments and repealsS

(1)Schedule 3 contains minor amendments and amendments consequential on the provisions of this Act.                  

(2)The enactments mentioned in the first column of schedule 4 (which include enactments that are spent) are repealed to the extent                        set out in the second column.                  

Commencement Information

I20S. 56 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 57CommencementS

(1)This section and sections 54, 55 and 58 come into force on the day after Royal Assent.                  

(2)The other provisions of this Act come into force on such day as the Scottish Ministers may by order appoint.                  

(3)An order under subsection (2) may contain transitory or transitional provision or savings.                  

### 58Short titleS

The short title of this Act is the Bankruptcy and Debt Advice (Scotland) Act 2014.

## SCHEDULE 1SSCHEDULE A1 TO THE 1985 ACT

 (introduced by section 5(2))

Commencement Information

I21Sch. 1 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

### 

This is the Schedule that is to be inserted as Schedule A1 to the 1985 Act—

#### “SCHEDULE A1SDEBTOR TO WHOM SECTION 5(2ZA) APPLIES: APPLICATION OF ACT

 (introduced by section 5(2ZE))

##### Modification of certain provisions of ActS

1(1)Where section 5(2ZA) applies in relation to a debtor, this Act applies subject to the modifications mentioned in sub-paragraphs                           (2) to (6).                  

(2)Section 3(1) applies as if paragraphs (e) and (f) were omitted.                  

(3)Section 20 applies as if for subsection (1) there were substituted—                  

“(1)This section applies where the Accountant in Bankruptcy receives by virtue of section 5(6A) the statement of assets and liabilities                           in relation to a debtor to whom section 5(2ZA) applies.                  

(1A)As soon as practicable, the Accountant in Bankruptcy must prepare a statement of the debtor's affairs so far as within the                           knowledge of the Accountant in Bankruptcy stating that, because section 5(2ZA) applies to the debtor, no claims may be submitted                           by creditors under section 22 or 48.                  

(1B)The Accountant in Bankruptcy must send a copy of the statement prepared under subsection (1A) to every known creditor of the                           debtor.”.                  

(4)Section 43A applies as if for subsection (2) there were substituted—                  

“(2)The Accountant in Bankruptcy may at any time before the discharge of the debtor require the debtor to give an account in writing,                           in such form as may be prescribed, of the debtor's current state of affairs.”.                  

(5)Section 58A applies as if—                  

(a)subsections (3) to (4C) and (7)(a) were omitted, and                  

(b)for subsection (5) there were substituted—                  

“(5)The debtor or any creditor may, before the expiry of the period of 14 days beginning with the day on which the debtor is discharged                           under section 54C(1), appeal to the sheriff against the discharge of the Accountant in Bankruptcy in respect of the Accountant                           in Bankruptcy's actings as trustee.”.                  

(6)Sections 21A, 22, 23, 24, 25, 26 to 27, 48, 52 and 62(2A) do not apply.                  

##### Accountant in Bankruptcy's duty to consider whether paragraph 1 should cease to applyS

2(1)This paragraph applies where paragraph 1 applies in relation to a debtor.                  

(2)If the Accountant in Bankruptcy considers that the circumstances mentioned in any of sub-paragraphs (3) to (6) apply in relation                           to the debtor, the Accountant in Bankruptcy must consider whether paragraph 1 should cease to apply in relation to the debtor.                  

(3)The circumstances are—                  

(a)the Accountant in Bankruptcy becomes aware that the debtor application submitted under section 5 contains an error, and                  

(b)the nature of the error is such that the debtor was not at that time a debtor to whom section 5(2ZA) applies.                  

(4)The circumstances are—                  

(a)the Accountant in Bankruptcy becomes aware that the debtor application submitted under section 5 deliberately misrepresents                           or fails to state a fact that was the case at the time of the application, and                  

(b)the nature of the misrepresentation or the omission of the fact is such that the debtor was not at that time a debtor to whom                           section 5(2ZA) applies.                  

(5)The circumstances are that, at any time after the date on which the debtor application is made—                  

(a)the total value of the debtor's assets (leaving out of account any liabilities and any assets that would not vest in a trustee                           under section 33(1)) exceeds £5000 (or such other amount as may be prescribed), or                  

(b)the Accountant in Bankruptcy assesses the debtor under the common financial tool as being able to make a contribution.                  

(6)The circumstances are that, at any time after the date of sequestration—                  

(a)the Accountant in Bankruptcy is not satisfied that the debtor has co-operated with the trustee, and                  

(b)the Accountant in Bankruptcy considers that it would be of financial benefit to the estate of the debtor and in the interests                           of the creditors if paragraph 1 were to cease to have effect.                  

(7)The Scottish Ministers may by regulations modify this paragraph—                  

(a)by modifying the circumstances in which paragraph 1 ceases to have effect,                  

(b)in consequence of any modification made under paragraph (a).                  

##### Procedure where Accountant in Bankruptcy considers paragraph 1 should cease to applyS

3(1)If the Accountant in Bankruptcy considers under paragraph 2(2) that paragraph 1 should cease to apply in relation to a debtor,                           the Accountant in Bankruptcy must notify the debtor of that fact and the matters mentioned in sub-paragraph (2).                  

(2)The matters are—                  

(a)the circumstances mentioned in paragraph 2 which the Accountant in Bankruptcy considers apply in relation to the debtor, and                  

(b)that the debtor may make representations to the Accountant in Bankruptcy within the period of 14 days beginning with the giving                           of notification under sub-paragraph (1).                  

(3)On the expiry of the period mentioned in sub-paragraph (2)(b) and after having taken into account any representations made                           by the debtor under that sub-paragraph, the Accountant in Bankruptcy must decide whether paragraph 1 should cease to apply                           in relation to the debtor.                  

(4)If the Accountant in Bankruptcy decides that paragraph 1 should cease to apply in relation to the debtor, the Accountant in                           Bankruptcy must, as soon as practicable after reaching that decision, give notice in writing to the debtor of the decision                           and the effect of it.                  

##### Debtor's right of appeal against decision under paragraph 3S

4(1)This paragraph applies where the Accountant in Bankruptcy gives notice to a debtor under paragraph 3(4).                  

(2)The debtor may appeal to the sheriff against the decision.                  

(3)An appeal must be lodged not later than 14 days after the day on which notice is given.                  

(4)If the sheriff grants the appeal, paragraph 1 continues to apply in relation to the debtor.                  

(5)If the sheriff refuses the appeal or if it is abandoned or withdrawn, paragraph 1 ceases to apply in relation to the debtor.                  

##### Decision that paragraph 1 ceases to have effect: modification of certain provisions of ActS

5(1)Where paragraph 1 ceases to have effect in relation to a debtor, this Act applies subject to sub-paragraphs (2) to (4).                  

(2)The debtor must send to the trustee a statement of assets and liabilities—                  

(a)where no appeal is taken under paragraph 4, before the expiry of the period of 7 days beginning with the expiry of the period                           during which an appeal may be made under that paragraph,                  

(b)where an appeal is refused or, as the case may be, abandoned or withdrawn, before the expiry of the period of 7 days beginning                           with the day on which notice is given of the outcome of the appeal or, as the case may be, its abandonment or withdrawal.                  

(3)Section 21A applies as if in subsection (2), for “sequestration is awarded” there were substituted “ paragraph 1 of Schedule A1 ceases to have effect in relation to the debtor ”.                  

(4)Section 43A applies as if for subsection (2) there were substituted—                  

“(2)The trustee must require the debtor to give an account in writing, in such form as may be prescribed, of the debtor's current                           state of affairs—                  

(a)before the expiry of the period of 60 days beginning with the day on which paragraph 1 of Schedule A1 ceases to have effect                           in relation to the debtor,                  

(b)on the expiry of the period of 6 months beginning with the day on which the account is given under paragraph (a), and                  

(c)on the expiry of each subsequent period of 6 months.”.”.                  

## SCHEDULE 2SINFORMATION TO BE INCLUDED IN THE SEDERUNT BOOK

 (introduced by section 23(4))

### 

## SCHEDULE 3SMINOR AND CONSEQUENTIAL AMENDMENTS

 (introduced by section 56(1))

### Sheriff Courts (Scotland) Act 1971 (c.58)S

1SIn section 32(1)(m) of the Sheriff Courts (Scotland) Act 1971 (appearance before a sheriff under the 1985 Act), after “sequestration)”                        insert “ or section 54B(6) of that Act (appeal following review of discharge decision) ”.

Commencement Information

I22Sch. 3 para. 1 in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.**

### Bankruptcy (Scotland) Act 1985 (c.66)S

2SThe Bankruptcy (Scotland) Act 1985 Act is amended as follows.

Commencement Information

I23Sch. 3 para. 2 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**

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34SIn section 72 (regulations)—

(a)after subsection (1), insert—

“(1A)Regulations under this Act may make different provision for different cases or classes of case.”, and                  

(b)in subsection (3)(a)—

(i)after sub-paragraph (i) insert—

“(ia)section 5(2ZC),                  

(ib)section 5(2ZD),”,                  

(ii)after sub-paragraph (iia) insert—

“(iib)section 5C(2)(b),                  

(iic)section 5D(1),                  

(iid)section 32E(7),” and                  

(iii)after sub-paragraph (iii), insert—

“(iv)section 71C(1) which contain provisions which add to, replace or omit any part of the text of an Act or an Act of the Scottish                           Parliament,                  

(v)paragraph 2(7) of Schedule A1,”.                  

Commencement Information

I24Sch. 3 para. 34 in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.**

35SIn section 73(1) (interpretation)—

(a)in the definition of “commissioner”, for “30(1)” substitute “ 4 ”,

(b)after the definition of “commissioner”, insert—

““common financial tool” has the meaning given by section 5D(1),”,                  

(c)after the definition of “creditor” insert—

““DAS register” has the meaning given by section 4A(4)(b),”,                  

(d)in the definition of “debtor application”, after “5(2)(a)” insert “ or (3)(a) ”,

(e)after the definition of “debtor application” insert—

““debtor contribution order” has the meaning given by section 32A(1),”                  

““debtor's contribution” has the meaning given by section 5D(1),”,                  

(f)after the definition of “member State liquidator” insert—

““money adviser” has the meaning given by section 5C(2),”,                  

(g)for the definition of “qualified to act as an insolvency practitioner” (and the proviso to that definition) substitute—

““qualified to act as an insolvency practitioner” is to be construed in accordance with section 390 of the Insolvency Act 1986,”, and                  

(h)after the definition of “statement of assets and liabilities” insert—

““statement of undertakings” means the statement of debtor undertakings sent to the debtor under section 2(8) or, in the case of a debtor application,                        given by the debtor when making the application,”.                  

Commencement Information

I25Sch. 3 para. 35(h) in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.**

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### Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17)S

38SIn section 62 of the Debt Arrangement and Attachment (Scotland) Act 2002 (regulations and orders)—

(a)in subsection (3), for “the first regulations made under section 7 above” substitute “ any regulations containing provision of the kind mentioned in section 7(2)(bd), any regulations containing provision of                           the kind mentioned in section 7(2)(ub) ”, and

(b)in subsection (4), for “the first regulations made under section 7 above” substitute “ any regulations containing provision of the kind mentioned in section 7(2)(bd), any regulations containing provision of                           the kind mentioned in section 7(2)(ub) ”.

Commencement Information

I26Sch. 3 para. 38 in force at 30.6.2014 by S.S.I. 2014/172, art. 2, **Sch.** (with art. 3)

## SCHEDULE 4SREPEALS

 (introduced by section 56(2))

Commencement Information

I27Sch. 4 in force at 30.6.2014 for specified purposes by S.S.I. 2014/172, art. 2, **Sch.**