House of Commons portcullis
House of Commons
Session 2006 - 07
Internet Publications
Other Bills before Parliament

Tribunals, Courts and Enforcement Bill [HL]


Tribunals, Courts and Enforcement Bill [HL]
Schedule 17 — Part 7A of the Insolvency Act 1986

265

 

(3)   

If on the effective date a creditor to whom a specified qualifying debt

is owed has any such petition, action or other proceeding as

mentioned in subsection (2)(b) pending in any court, the court may—

(a)   

stay the proceedings on the petition, action or other

proceedings (as the case may be), or

5

(b)   

allow them to continue on such terms as the court thinks fit.

(4)   

In subsection (2)(a) and (b) references to the debt include a reference

to any interest, penalty or other sum that becomes payable in relation

to that debt after the application date.

(5)   

Nothing in this section affects the right of a secured creditor of the

10

debtor to enforce his security.

251H    

The moratorium period

(1)   

The moratorium relating to the qualifying debts specified in a debt

relief order continues for the period of one year beginning with the

effective date for the order, unless—

15

(a)   

the moratorium terminates early; or

(b)   

the moratorium period is extended by the official receiver

under this section or by the court under section 251M.

(2)   

The official receiver may only extend the moratorium period for the

purpose of—

20

(a)   

carrying out or completing an investigation under section

251K;

(b)   

taking any action he considers necessary (whether as a result

of an investigation or otherwise) in relation to the order; or

(c)   

in a case where he has decided to revoke the order, providing

25

the debtor with the opportunity to make arrangements for

making payments towards his debts.

(3)   

The official receiver may not extend the moratorium period for the

purpose mentioned in subsection (2)(a) without the permission of

the court.

30

(4)   

The official receiver may not extend the moratorium period beyond

the end of the period of three months beginning after the end of the

initial period of one year mentioned in subsection (1).

(5)   

The moratorium period may be extended more than once, but any

extension (whether by the official receiver or by the court) must be

35

made before the moratorium would otherwise end.

(6)   

References in this Part to a moratorium terminating early are to its

terminating before the end of what would otherwise be the

moratorium period, whether on the revocation of the order or by

virtue of any other enactment.

40

251I    

Discharge from qualifying debts

(1)   

Subject as follows, at the end of the moratorium applicable to a debt

relief order the debtor is discharged from all the qualifying debts

specified in the order (including all interest, penalties and other

sums which may have become payable in relation to those debts

45

since the application date).

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 17 — Part 7A of the Insolvency Act 1986

266

 

(2)   

Subsection (1) does not apply if the moratorium terminates early.

(3)   

Subsection (1) does not apply in relation to any qualifying debt

which the debtor incurred in respect of any fraud or fraudulent

breach of trust to which the debtor was a party.

(4)   

The discharge of the debtor under subsection (1) does not release any

5

other person from—

(a)   

any liability (whether as partner or co-trustee of the debtor or

otherwise) from which the debtor is released by the

discharge; or

(b)   

any liability as surety for the debtor or as a person in the

10

nature of such a surety.

(5)   

If the order is revoked by the court under section 251M after the end

of the moratorium period, the qualifying debts specified in the order

shall (so far as practicable) be treated as though subsection (1) had

never applied to them.

15

Duties of debtor

251J    

Providing assistance to official receiver etc

(1)   

The duties in this section apply to a debtor at any time after the

making of an application by him for a debt relief order.

(2)   

The debtor must—

20

(a)   

give to the official receiver such information as to his affairs,

(b)   

attend on the official receiver at such times, and

(c)   

do all such other things,

   

as the official receiver may reasonably require for the purpose of

carrying out his functions in relation to the application or, as the case

25

may be, the debt relief order made as a result of the application.

(3)   

The debtor must notify the official receiver as soon as reasonably

practicable if he becomes aware of—

(a)   

any error in, or omission from, the information supplied to

the official receiver in, or in support of, the application;

30

(b)   

any change in his circumstances between the application date

and the determination date that would affect (or would have

affected) the determination of the application.

(4)   

The duties under subsections (2) and (3) apply after (as well as

before) the determination of the application, for as long as the official

35

receiver is able to exercise functions of the kind mentioned in

subsection (2).

(5)   

If a debt relief order is made as a result of the application, the debtor

must notify the official receiver as soon as reasonably practicable if—

(a)   

there is an increase in his income during the moratorium

40

period applicable to the order;

(b)   

he acquires any property or any property is devolved upon

him during that period;

(c)   

he becomes aware of any error in or omission from any

information supplied by him to the official receiver after the

45

determination date.

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 17 — Part 7A of the Insolvency Act 1986

267

 

(6)   

A notification under subsection (3) or (5) must give the prescribed

particulars (if any) of the matter being notified.

Objections, investigations and revocation

251K    

Objections and investigations

(1)   

Any person specified in a debt relief order as a creditor to whom a

5

specified qualifying debt is owed may object to—

(a)   

the making of the order;

(b)   

the inclusion of the debt in the list of the debtor’s qualifying

debts; or

(c)   

the details of the debt specified in the order.

10

(2)   

An objection under subsection (1) must be—

(a)   

made during the moratorium period relating to the order and

within the prescribed period for objections;

(b)   

made to the official receiver in the prescribed manner;

(c)   

based on a prescribed ground;

15

(d)   

supported by any information and documents as may be

prescribed;

   

and the prescribed period mentioned in paragraph (a) must not be

less than 28 days after the creditor in question has been notified of

the making of the order.

20

(3)   

The official receiver must consider every objection made to him

under this section.

(4)   

The official receiver may—

(a)   

as part of his consideration of an objection, or

(b)   

on his own initiative,

25

   

carry out an investigation of any matter that appears to the official

receiver to be relevant to the making of any decision mentioned in

subsection (5) in relation to a debt relief order or the debtor.

(5)   

The decisions to which an investigation may be directed are—

(a)   

whether the order should be revoked or amended under

30

section 251L;

(b)   

whether an application should be made to the court under

section 251M; or

(c)   

whether any other steps should be taken in relation to the

debtor.

35

(6)   

The power to carry out an investigation under this section is

exercisable after (as well as during) the moratorium relating to the

order.

(7)   

The official receiver may require any person to give him such

information and assistance as he may reasonably require in

40

connection with an investigation under this section.

(8)   

Subject to anything prescribed in the rules as to the procedure to be

followed in carrying out an investigation under this section, an

investigation may be carried out by the official receiver in such

manner as he thinks fit.

45

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 17 — Part 7A of the Insolvency Act 1986

268

 

251L    

Power of official receiver to revoke or amend a debt relief order

(1)   

The official receiver may revoke or amend a debt relief order during

the applicable moratorium period in the circumstances provided for

by this section.

(2)   

The official receiver may revoke the order on the ground that—

5

(a)   

any information supplied to him by the debtor—

(i)   

in, or in support of, the application, or

(ii)   

after the determination date,

   

was incomplete, incorrect or otherwise misleading;

(b)   

the debtor has failed to comply with a duty under section

10

251J;

(c)   

a bankruptcy order has been made in relation to the debtor;

or

(d)   

the debtor has made a proposal under Part 8 (or has notified

the official receiver of his intention to do so).

15

(3)   

The official receiver may revoke the order on the ground that he

should not have been satisfied—

(a)   

that the debts specified in the order were qualifying debts of

the debtor as at the application date;

(b)   

that the conditions specified in Part 1 of Schedule 4ZA were

20

met;

(c)   

that the conditions specified in Part 2 of that Schedule were

met or that any failure to meet such a condition did not

prevent his making the order.

(4)   

The official receiver may revoke the order on the ground that either

25

or both of the conditions in paragraphs 7 and 8 of Schedule 4ZA

(monthly surplus income and property) are not met at any time after

the order was made.

   

For this purpose those paragraphs are to be read as if references to

the determination date were references to the time in question.

30

(5)   

Where the official receiver decides to revoke the order, he may

revoke it either—

(a)   

with immediate effect, or

(b)   

with effect from such date (not more than three months after

the date of the decision) as he may specify.

35

(6)   

In considering when the revocation should take effect the official

receiver must consider (in the light of the grounds on which the

decision to revoke was made and all the other circumstances of the

case) whether the debtor ought to be given the opportunity to make

arrangements for making payments towards his debts.

40

(7)   

If the order has been revoked with effect from a specified date the

official receiver may, if he thinks it appropriate to do so at any time

before that date, revoke the order with immediate effect.

(8)   

The official receiver may amend a debt relief order for the purpose of

correcting an error in or omission from anything specified in the

45

order.

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 17 — Part 7A of the Insolvency Act 1986

269

 

(9)   

But subsection (8) does not permit the official receiver to add any

debts that were not specified in the application for the debt relief

order to the list of qualifying debts.

(10)   

The rules may make further provision as to the procedure to be

followed by the official receiver in the exercise of his powers under

5

this section.

Role of the court

251M    

Powers of court in relation to debt relief orders

(1)   

Any person may make an application to the court if he is dissatisfied

by any act, omission or decision of the official receiver in connection

10

with a debt relief order or an application for such an order.

(2)   

The official receiver may make an application to the court for

directions or an order in relation to any matter arising in connection

with a debt relief order or an application for such an order.

(3)   

The matters referred to in subsection (2) include, among other things,

15

matters relating to the debtor’s compliance with any duty arising

under section 251J.

(4)   

An application under this section may, subject to anything in the

rules, be made at any time.

(5)   

The court may extend the moratorium period applicable to a debt

20

relief order for the purposes of determining an application under this

section.

(6)   

On an application under this section the court may dismiss the

application or do one or more of the following—

(a)   

quash the whole or part of any act or decision of the official

25

receiver;

(b)   

give the official receiver directions (including a direction that

he reconsider any matter in relation to which his act or

decision has been quashed under paragraph (a));

(c)   

make an order for the enforcement of any obligation on the

30

debtor arising by virtue of a duty under section 251J;

(d)   

extend the moratorium period applicable to the debt relief

order;

(e)   

make an order revoking or amending the debt relief order;

(f)   

make an order under section 251N; or

35

(g)   

make such other order as the court thinks fit.

(7)   

An order under subsection (6)(e) for the revocation of a debt relief

order—

(a)   

may be made during the moratorium period applicable to the

debt relief order or at any time after that period has ended;

40

(b)   

may be made on the court’s own motion if the court has made

a bankruptcy order in relation to the debtor during that

period;

(c)   

may provide for the revocation of the order to take effect on

such terms and at such a time as the court may specify.

45

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 17 — Part 7A of the Insolvency Act 1986

270

 

(8)   

An order under subsection (6)(e) for the amendment of a debt relief

order may not add any debts that were not specified in the

application for the debt relief order to the list of qualifying debts.

251N    

Inquiry into debtor’s dealings and property

(1)   

An order under this section may be made by the court on the

5

application of the official receiver.

(2)   

An order under this section is an order summoning any of the

following persons to appear before the court—

(a)   

the debtor;

(b)   

the debtor’s spouse or former spouse or the debtor’s civil

10

partner or former civil partner;

(c)   

any person appearing to the court to be able to give

information or assistance concerning the debtor or his

dealings, affairs and property.

(3)   

The court may require a person falling within subsection (2)(c)—

15

(a)   

to provide a written account of his dealings with the debtor;

or

(b)   

to produce any documents in his possession or under his

control relating to the debtor or to the debtor’s dealings,

affairs or property.

20

(4)   

Subsection (5) applies where a person fails without reasonable

excuse to appear before the court when he is summoned to do so by

an order under this section.

(5)   

The court may cause a warrant to be issued to a constable or

prescribed officer of the court—

25

(a)   

for the arrest of that person, and

(b)   

for the seizure of any records or other documents in that

person’s possession.

(6)   

The court may authorise a person arrested under such a warrant to

be kept in custody, and anything seized under such a warrant to be

30

held, in accordance with the rules, until that person is brought before

the court under the warrant or until such other time as the court may

order.

Offences

251O    

False representations and omissions

35

(1)   

A person who makes an application for a debt relief order is guilty of

an offence if he knowingly or recklessly makes any false

representation or omission in making the application or providing

any information or documents to the official receiver in support of

the application.

40

(2)   

A person who makes an application for a debt relief order is guilty of

an offence if—

(a)   

he intentionally fails to comply with a duty under section

251J(3) in connection with the application; or

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 17 — Part 7A of the Insolvency Act 1986

271

 

(b)   

he knowingly or recklessly makes any false representation or

omission in providing any information to the official receiver

in connection with such a duty or otherwise in connection

with the application.

(3)   

It is immaterial for the purposes of an offence under subsection (1) or

5

(2) whether or not a debt relief order is made as a result of the

application.

(4)   

A person in respect of whom a debt relief order is made is guilty of

an offence if—

(a)   

he intentionally fails to comply with a duty under section

10

251J(5) in connection with the order; or

(b)   

he knowingly or recklessly makes any false representation or

omission in providing information to the official receiver in

connection with such a duty or otherwise in connection with

the performance by the official receiver of functions in

15

relation to the order.

(5)   

It is immaterial for the purposes of an offence under subsection (4)—

(a)   

whether the offence is committed during or after the

moratorium period; and

(b)   

whether or not the order is revoked after the conduct

20

constituting the offence takes place.

251P    

Concealment or falsification of documents

(1)   

A person in respect of whom a debt relief order is made is guilty of

an offence if, during the moratorium period in relation to that

order—

25

(a)   

he does not provide, at the request of the official receiver, all

his books, papers and other records of which he has

possession or control and which relate to his affairs;

(b)   

he prevents the production to the official receiver of any

books, papers or other records relating to his affairs;

30

(c)   

he conceals, destroys, mutilates or falsifies, or causes or

permits the concealment, destruction, mutilation or

falsification of, any books, papers or other records relating

his affairs;

(d)   

he makes, or causes or permits the making of, any false

35

entries in any book, document or record relating to his affairs;

or

(e)   

he disposes of, or alters or makes any omission in, or causes

or permits the disposal, altering or making of any omission

in, any book, document or record relating to his affairs.

40

(2)   

A person in respect of whom a debt relief order is made is guilty of

an offence if—

(a)   

he did anything falling within paragraphs (c) to (e) of

subsection (1) during the period of 12 months ending with

the application date; or

45

(b)   

he did anything falling within paragraphs (b) to (e) of

subsection (1) after that date but before the effective date.

 

 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2007
Revised 22 February 2007