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Tribunals, Courts and Enforcement Bill [HL]


Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 1 — Administration orders

65

 

112B    

Power to make order

(1)   

A county court may make an administration order if the conditions in

subsections (2) to (7) are met.

(2)   

The order must be made in respect of an individual who is a debtor

under two or more qualifying debts.

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(3)   

That individual (“the debtor”) must not be a debtor under any business

debts.

(4)   

The debtor must not be excluded under any of the following—

(a)   

the AO exclusion;

(b)   

the voluntary arrangement exclusion;

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(c)   

the bankruptcy exclusion.

(5)   

The debtor must be unable to pay one or more of his qualifying debts.

(6)   

The total amount of the debtor’s qualifying debts must be less than, or

the same as, the prescribed maximum.

(7)   

The debtor’s surplus income must be more than the prescribed

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minimum.

(8)   

Before making an administration order, the county court must have

regard to any representations made—

(a)   

by any person about why the order should not be made, or

(b)   

by a creditor under a debt about why the debt should not be

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taken into account in calculating the total amount of the

debtor’s qualifying debts.

Scheduling debts

112C    

Scheduling declared debts

(1)   

This section applies to a qualifying debt (“the declared debt”) if—

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(a)   

an administration order is made, and

(b)   

when the order is made, the debt is taken into account in

calculating the total amount of the debtor’s qualifying debts for

the purposes of section 112B(6).

(2)   

If the declared debt is already due at the time the administration order

30

is made, the proper county court must schedule the debt to the order

when the order is made.

(3)   

If the declared debt becomes due after the administration order is

made, the proper county court must schedule the debt to the order if

the debtor, or the creditor under the debt, applies to the court for the

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debt to be scheduled.

(4)   

This section is subject to section 112AG(5).

112D    

Scheduling new debts

(1)   

This section applies to a qualifying debt (“the new debt”) if the debt—

(a)   

arises after an administration order is made, and

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(b)   

becomes due during the currency of the order.

 
 

Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 1 — Administration orders

66

 

(2)   

The proper county court may schedule the new debt to the

administration order if these conditions are met—

(a)   

the debtor, or the creditor under the new debt, applies to the

court for the debt to be scheduled;

(b)   

the total amount of the debtor’s qualifying debts (including the

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new debt) is less than, or the same as, the prescribed maximum.

Requirements imposed by order

112E    

Repayment requirement

(1)   

An administration order must, during the currency of the order,

impose a repayment requirement on the debtor.

10

(2)   

A repayment requirement is a requirement for the debtor to repay the

scheduled debts.

(3)   

The repayment requirement may provide for the debtor to repay a

particular scheduled debt in full or to some other extent.

(4)   

The repayment requirement may provide for the debtor to repay

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different scheduled debts to different extents.

(5)   

In the case of a new debt scheduled to the order in accordance with

section 112D, the repayment requirement may provide that no due

repayment in respect of the new debt is to be made until the debtor has

made all due repayments in respect of declared debts.

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(6)   

The repayment requirement must provide that the due repayments are

to be made by instalments.

(7)   

It is for the proper county court to decide when the instalments are to

be made.

(8)   

But the proper county court is to determine the amount of the

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instalments in accordance with repayment regulations.

(9)   

Repayment regulations are regulations which make provision for

instalments to be determined by reference to the debtor’s surplus

income.

(10)   

The repayment requirement may provide that the due repayments are

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to be made by other means (including by one or more lump sums) in

addition to the instalments required in accordance with subsection (6).

(11)   

The repayment requirement may include provision in addition to any

that is required or permitted by this section.

(12)   

In this section—

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“declared debt” has the same meaning as in section 112C (and for

this purpose it does not matter whether a declared debt is

scheduled to the administration order when it is made, or

afterwards);

“due repayments” means repayments which the repayment

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requirement requires the debtor to make;

“new debt” has the same meaning as in section 112D.

 
 

Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 1 — Administration orders

67

 

112F    

Presentation of bankruptcy petition

(1)   

An administration order must, during the currency of the order,

impose the following requirement.

(2)   

The requirement is that no qualifying creditor of the debtor is to present

a bankruptcy petition against the debtor in respect of a qualifying debt,

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unless the creditor has the permission of the proper county court.

(3)   

The proper county court may give permission for the purposes of

subsection (2) subject to such conditions as it thinks fit.

112G    

Remedies other than bankruptcy

(1)   

An administration order must, during the currency of the order,

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impose the following requirement.

(2)   

The requirement is that no qualifying creditor of the debtor is to pursue

any remedy for the recovery of a qualifying debt unless—

(a)   

regulations under subsection (3) provide otherwise, or

(b)   

the creditor has the permission of the proper county court.

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(3)   

Regulations may specify classes of debt which are exempted (or

exempted for specified purposes) from the restriction imposed by

subsection (2).

(4)   

The proper county court may give permission for the purposes of

subsection (2)(b) subject to such conditions as it thinks fit.

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(5)   

This section does not have any effect in relation to bankruptcy

proceedings.

112H    

Charging of interest etc

(1)   

An administration order must, during the currency of the order,

impose the following requirement.

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(2)   

The requirement is that no creditor under a scheduled debt is to charge

any sum by way of interest, fee or other charge in respect of that debt.

112I    

Stopping supplies of gas or electricity

(1)   

An administration order must, during the currency of the order,

impose the requirement in subsection (3).

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(2)   

In relation to that requirement, a domestic utility creditor is any person

who—

(a)   

provides the debtor with a supply of mains gas or mains

electricity for the debtor’s own domestic purposes, and

(b)   

is a creditor under a qualifying debt that relates to the provision

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of that supply.

(3)   

The requirement is that no domestic utility creditor is to stop the supply

of gas or electricity, or the supply of any associated services, except in

the cases in subsections (4) to (6).

(4)   

The first case is where the reason for stopping a supply relates to the

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non-payment by the debtor of charges incurred in connection with that

supply after the making of the administration order.

 
 

Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 1 — Administration orders

68

 

(5)   

The second case is where the reason for stopping a supply is

unconnected with the non-payment by the debtor of any charges

incurred in connection with—

(a)   

that supply, or

(b)   

any other supply of mains gas or mains electricity, or of

5

associated services, that is provided by the domestic utility

creditor.

(6)   

The third case is where the proper county court gives permission to

stop a supply.

(7)   

The proper county court may give permission for the purposes of

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subsection (6) subject to such conditions as it thinks fit.

(8)   

A supply of mains gas is a supply of the kind mentioned in section

5(1)(b) of the Gas Act 1986 (c. 44).

(9)   

A supply of mains electricity is a supply of the kind mentioned in

section 4(1)(c) of the Electricity Act 1989 (c. 29).

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Making an order

112J    

Application for an order

(1)   

A county court may make an administration order only on the

application of the debtor.

(2)   

The debtor may make an application for an administration order

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whether or not a judgment has been obtained against him in respect of

any of his debts.

112K    

Duration

(1)   

A county court may, at the time it makes an administration order,

specify a day on which the order will cease to have effect.

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(2)   

The court may not specify a day which falls after the last day of the

maximum permitted period.

(3)   

If the court specifies a day under this section, the order ceases to have

effect on that day.

(4)   

If the court does not specify a day under this section, the order ceases

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to have effect at the end of the maximum permitted period.

(5)   

The maximum permitted period is the period of five years beginning

with the day on which the order is made.

(6)   

This section is subject to—

(a)   

section 112S (variation of duration);

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(b)   

section 112W (effect of revocation).

(7)   

This section is also subject to the following (effect of enforcement

restriction order or debt relief order on administration order)—

(a)   

section 117I of this Act;

(b)   

section 251F of the Insolvency Act 1986.

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