|
| |
|
| |
112L | Effect on other debt management arrangements |
| |
(1) | This section applies if— |
| |
(a) | an administration order is made, and |
| |
(b) | immediately before the order is made, other debt management |
| 5 |
arrangements are in force in respect of the debtor. |
| |
(2) | The other debt management arrangements cease to be in force when the |
| |
administration order is made. |
| |
(3) | If the proper county court is aware of the other debt management |
| |
arrangements, the court must give the relevant authority notice that the |
| 10 |
| |
(4) | In a case where the proper county court is aware of other debt |
| |
management arrangements at the time it makes the order, it must give |
| |
the notice as soon as practicable after making the order. |
| |
(5) | In a case where the proper county court becomes aware of those |
| 15 |
arrangements after it makes the order, it must give the notice as soon as |
| |
practicable after becoming aware of them. |
| |
(6) | “Other debt management arrangements” means any of the following— |
| |
(a) | an enforcement restriction order under Part 6A of this Act; |
| |
(b) | a debt relief order under Part 7A of the Insolvency Act 1986; |
| 20 |
(c) | a debt repayment plan arranged in accordance with a debt |
| |
management scheme that is approved under Chapter 4 of Part |
| |
5 of the Tribunals, Courts and Enforcement Act 2006. |
| |
(7) | “The relevant authority” means— |
| |
(a) | in relation to an enforcement restriction order: the proper |
| 25 |
county court (within the meaning of Part 6A); |
| |
(b) | in relation to a debt relief order: the official receiver; |
| |
(c) | in relation to a debt repayment plan: the operator of the debt |
| |
management scheme in accordance with which the plan is |
| |
| 30 |
(8) | For the purposes of this section a debt relief order is “in force” if the |
| |
moratorium applicable to the order under section 251H of the |
| |
Insolvency Act 1986 has not yet ended. |
| |
112M | Duty to provide information |
| |
(1) | This section applies if, and for as long as, an administration order has |
| 35 |
effect in respect of a debtor. |
| |
(2) | The debtor must, at the prescribed times, provide the proper county |
| |
court with particulars of his— |
| |
| |
| 40 |
| |
| |
(3) | The debtor must provide particulars of those matters— |
| |
(a) | as the matters are at the time the particulars are provided, and |
| |
|
| |
|
| |
|
(b) | as the debtor expects the matters to be at such times in the future |
| |
| |
(4) | If the debtor intends to dispose of any of his property he must, within |
| |
the prescribed period, provide the proper county court with particulars |
| |
of the following matters— |
| 5 |
(a) | the property he intends to dispose of; |
| |
(b) | the consideration (if any) he expects will be given for the |
| |
| |
(c) | such other matters as may be prescribed; |
| |
(d) | such other matters as the court may specify. |
| 10 |
(5) | But subsection (4) does not apply if the disposal is of— |
| |
(a) | goods that are exempt goods for the purposes of Schedule 12 to |
| |
the Tribunals, Courts and Enforcement Act 2006, |
| |
(b) | goods that are protected under any other enactment from being |
| |
taken control of under that Schedule, or |
| 15 |
| |
(6) | The duty under subsection (4) to provide the proper county court with |
| |
particulars of a proposed disposal of property applies whether the |
| |
debtor is the sole owner, or one of several owners, of the property. |
| |
(7) | In any provision of this section “prescribed” means prescribed in |
| 20 |
regulations for the purposes of that provision. |
| |
112N | Offence if information not provided |
| |
(1) | A person commits an offence if he fails to comply with— |
| |
(a) | section 112M(2) and (3), or |
| |
| 25 |
(2) | A person who commits an offence under subsection (1) may be ordered |
| |
by a judge of the proper county court to pay a fine of not more than £250 |
| |
or to be imprisoned for not more than 14 days. |
| |
(3) | Where under subsection (2) a person is ordered to be imprisoned by a |
| |
judge of the proper county court, the judge may at any time— |
| 30 |
(a) | revoke the order, and |
| |
(b) | if the person is already in custody, order his discharge. |
| |
(4) | Section 129 of the County Courts Act 1984 (c. 28) (enforcement of fines) |
| |
applies to payment of a fine imposed under subsection (2). |
| |
(5) | For the purposes of section 13 of the Administration of Justice Act 1960 |
| 35 |
(c. 65) (appeal in cases of contempt of court), subsection (2) is to be |
| |
treated as an enactment enabling a county court to deal with an offence |
| |
under subsection (1) as if it were a contempt of court. |
| |
(6) | A district judge or deputy district judge shall have the same powers |
| |
under this section as a judge of a county court. |
| 40 |
112O | Existing county court proceedings to be stayed |
| |
(1) | This section applies if these conditions are met— |
| |
(a) | an administration order is made; |
| |
|
| |
|
| |
|
(b) | proceedings in a county court (other than bankruptcy |
| |
proceedings) are pending against the debtor in respect of a |
| |
| |
(c) | by virtue of a requirement included in the order by virtue of |
| |
section 112G, the creditor under the qualifying debt is not |
| 5 |
entitled to continue the proceedings in respect of the debt; |
| |
(d) | the county court receives notice of the administration order. |
| |
(2) | The county court must stay the proceedings. |
| |
(3) | The court may allow costs already incurred by the creditor. |
| |
(4) | If the court allows such costs, it may on application or of its motion add |
| 10 |
| |
| |
(b) | if the debt is a scheduled debt, to the amount scheduled to the |
| |
order in respect of the debt. |
| |
(5) | But the court may not add the costs under subsection (4)(b) if the court |
| 15 |
is under a duty under section 112U(6)(b) to revoke the order because |
| |
the total amount of the debtor’s qualifying debts (including the costs) |
| |
is more than the prescribed maximum. |
| |
112P | Appropriation of money paid |
| |
(1) | Money paid into court under an administration order is to be |
| 20 |
| |
(a) | first in satisfaction of any relevant court fees; and |
| |
(b) | then in liquidation of debts. |
| |
(2) | Relevant court fees are any fees under an order made under section 92 |
| |
of the Courts Act 2003 which are payable by the debtor in respect of the |
| 25 |
| |
112Q | Discharge from debts |
| |
(1) | If the debtor repays a scheduled debt to the extent provided for by the |
| |
administration order, the proper county court must— |
| |
(a) | order that the debtor is discharged from the debt, and |
| 30 |
(b) | de-schedule the debt. |
| |
(2) | If the debtor repays all of the scheduled debts to the extent provided for |
| |
by the administration order, the proper county court must revoke the |
| |
| |
(3) | Subsections (1) and (2) apply to all scheduled debts, including any |
| 35 |
which, under the administration order, are to be repaid other than to |
| |
| |
| |
| |
(1) | The proper county court may vary an administration order. |
| 40 |
(2) | The power under this section is exercisable— |
| |
(a) | on the application of the debtor; |
| |
(b) | on the application of a qualifying creditor; |
| |
|
| |
|
| |
|
(c) | of the court’s own motion. |
| |
112S | Variation of duration |
| |
(1) | The power under section 112R includes power to vary an |
| |
administration order so as to specify a day, or (if a day has already been |
| |
specified under section 112K or this subsection) a different day, on |
| 5 |
which the order will cease to have effect. |
| |
(2) | But the new termination day must fall on or before the last day of the |
| |
maximum permitted period. |
| |
(3) | If the proper county court varies an administration under subsection |
| |
(1), the order ceases to have effect on the new termination day. |
| 10 |
| |
(a) | “new termination day” means the day on which the order will |
| |
cease to have effect in accordance with the variation under |
| |
| |
(b) | “maximum permitted period” means the period of five years |
| 15 |
beginning with the day on which the order was originally |
| |
| |
(5) | This section is subject to section 112W (effect of revocation). |
| |
| |
(1) | The power under section 112R includes power to vary an |
| 20 |
administration order by de-scheduling a debt. |
| |
(2) | But the debt may be de-scheduled only if it appears to the proper |
| |
county court that it is just and equitable to do so. |
| |
| |
112U | Duty to revoke order |
| 25 |
(1) | The proper county court must revoke an administration order in either |
| |
| |
(a) | where it becomes apparent that, at the time the order was made, |
| |
the condition in subsection 112B(2) was not met (debtor in fact |
| |
did not have two or more qualifying debts); |
| 30 |
(b) | where the debtor is no longer a debtor under any qualifying |
| |
| |
(2) | The proper county court must revoke an administration order in either |
| |
| |
(a) | where it becomes apparent that, at the time the order was made, |
| 35 |
the condition in subsection 112B(3) was not met (debtor in fact |
| |
had business debt), and he is still a debtor under the business |
| |
debt, or any of the business debts, in question; |
| |
(b) | where the debtor subsequently becomes a debtor under a |
| |
business debt, and he is still a debtor under that debt. |
| 40 |
(3) | The proper county court must revoke an administration order where it |
| |
becomes apparent that, at the time the order was made, the condition |
| |
in section 112B(4) was not met (debtor in fact excluded under AO, |
| |
voluntary arrangement or bankruptcy exclusion). |
| |
|
| |
|
| |
|
(4) | The proper county court must revoke an administration order where, |
| |
| |
(a) | the debtor becomes excluded under the voluntary arrangement |
| |
| |
(b) | a bankruptcy order is made against the debtor, and is still in |
| 5 |
| |
(5) | The proper county court must revoke an administration order in either |
| |
| |
(a) | where it becomes apparent that, at the time the order was made, |
| |
the condition in section 112B(5) was not met (debtor in fact able |
| 10 |
to pay qualifying debts); |
| |
(b) | where the debtor is now able to pay all of his qualifying debts. |
| |
(6) | The proper county court must revoke an administration order in either |
| |
| |
(a) | where it becomes apparent that, at the time the order was made, |
| 15 |
the condition in section 112B(6) was not met (debtor’s |
| |
qualifying debts in fact more than prescribed maximum); |
| |
(b) | where the total amount of the debtor’s qualifying debts is now |
| |
more than the prescribed maximum. |
| |
(7) | The proper county court must revoke an administration order in either |
| 20 |
| |
(a) | where it becomes apparent that, at the time the order was made, |
| |
the condition in section 112B(7) was not met (debtor’s surplus |
| |
income in fact less than, or the same as, the prescribed |
| |
| 25 |
(b) | where the debtor’s surplus income is now less than, or the same |
| |
as, the prescribed minimum. |
| |
112V | Power to revoke order |
| |
(1) | The proper county court may revoke an administration order in any |
| |
case where there is no duty under this Part to revoke it. |
| 30 |
(2) | The power of revocation under this section may, in particular, be |
| |
exercised in any of the following cases— |
| |
(a) | where the debtor has failed to make two payments (whether |
| |
consecutive or not) required by the order; |
| |
(b) | where the debtor has failed to provide the proper county court |
| 35 |
with the particulars required by— |
| |
(i) | section 112M(2) and (3), or |
| |
| |
(3) | The power of revocation under this section is exercisable— |
| |
(a) | on the application of the debtor; |
| 40 |
(b) | on the application of a qualifying creditor; |
| |
(c) | of the court’s own motion. |
| |
112W | Effect of revocation |
| |
(1) | This section applies if, under any duty or power in this Part, the proper |
| |
county court revokes an administration order. |
| 45 |
|
| |
|
| |
|
(2) | The order ceases to have effect in accordance with the terms of the |
| |
| |
Notification of certain events |
| |
112X | Notice when order made, varied, revoked etc |
| |
(1) | If a notifiable event occurs in relation to an administration order, the |
| 5 |
proper county court must send notice of the event to the creditor under |
| |
| |
(2) | There is a notifiable event in any of the following cases— |
| |
(a) | when the administration order is made; |
| |
(b) | when a debt is scheduled to the administration order at any |
| 10 |
time after the making of the order; |
| |
(c) | when the administration order is varied; |
| |
(d) | when the administration order is revoked; |
| |
(e) | when the proper county court is given notice under any of the |
| |
provisions listed in section 112K(7) (effect of enforcement |
| 15 |
restriction order or debt repayment plan on administration |
| |
| |
Total amount of qualifying debts not properly calculated |
| |
112Y | Failure to take account of all qualifying debts |
| |
(1) | This section applies if— |
| 20 |
(a) | an administration order has been made, but |
| |
(b) | it becomes apparent that the total amount of the debtor’s |
| |
qualifying debts was not properly calculated for the purposes of |
| |
section 112B(6), because of an undeclared debt. |
| |
(2) | A debt is undeclared if it ought to have been, but was not, taken into |
| 25 |
account in the calculation for the purposes of section 112B(6). |
| |
(3) | If these conditions are met— |
| |
(a) | the undeclared debt is due (whether it became due before or |
| |
after the making of the order); |
| |
(b) | the total debt is less than, or the same as, the prescribed |
| 30 |
| |
| the proper county court must schedule the undeclared debt to the |
| |
| |
(4) | If these conditions are met— |
| |
(a) | the undeclared debt is not due; |
| 35 |
(b) | the total debt is less than, or the same as, the prescribed |
| |
| |
| the proper county court must schedule the undeclared debt to the order |
| |
when the debt becomes due. |
| |
(5) | If the total debt is more than the prescribed maximum, the proper |
| 40 |
county court must revoke the administration order (whether or not the |
| |
| |
|
| |
|
| |
|
(6) | In this section “total debt” means the total amount of the debtor’s |
| |
qualifying debts (including the undeclared debt). |
| |
(7) | Subsections (3) and (4) are subject to section 112AG(5). |
| |
| |
| 5 |
Sections 112AA to 112AH apply for the purposes of this Part. |
| |
| |
| |
“administration order” has the meaning given by section 112A; |
| |
“debtor” has the meaning given by section 112B; |
| 10 |
“prescribed maximum” means the amount prescribed in |
| |
regulations for the purposes of section 112B(6); |
| |
“prescribed minimum” means the amount prescribed in |
| |
regulations for the purposes of section 112B(7); |
| |
“qualifying creditor” means a creditor under a qualifying debt. |
| 15 |
(2) | References to the currency of an administration order are references to |
| |
| |
(a) | begins when the order first has effect, and |
| |
(b) | ends when the order ceases to have effect. |
| |
(3) | In relation to an administration order, references to the proper county |
| 20 |
court are references to the county court that made the order. |
| |
(4) | But that is subject to rules of court as to the venue for, and transfer of, |
| |
proceedings in county courts. |
| |
112AB | Expressions relating to debts |
| |
(1) | All debts are qualifying debts, except for the following— |
| 25 |
(a) | any debt secured against an asset; |
| |
(b) | any debt of a description specified in regulations. |
| |
(2) | A business debt is any debt (whether or not a qualifying debt) which is |
| |
incurred by a person in the course of a business. |
| |
(3) | Only debts that have already arisen are included in references to debts; |
| 30 |
and accordingly such references do not include any debt that will arise |
| |
only on the happening of some future contingency. |
| |
112AC | Inability to pay debts |
| |
(1) | In a case where an individual is the debtor under a debt that is |
| |
repayable by a single payment, the debtor is to be regarded as unable |
| 35 |
| |
(a) | the debt has become due; |
| |
(b) | the debtor has failed to make the single payment; and |
| |
(c) | the debtor is unable to make that payment. |
| |
(2) | In a case where an individual is the debtor under a debt that is |
| 40 |
repayable by a number of payments, the debtor is to be regarded as |
| |
unable to pay the debt only if— |
| |
|
| |
|