Tribunals, Courts and Enforcement Bill [HL]

House of Commons

Session 2006 - 07
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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
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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.
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(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
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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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