Tribunals, Courts and Enforcement Bill [HL]

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Tribunals, Courts and Enforcement Bill [HL]

Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 4 — Debt management schemes
90

(2)
The plan must specify all of the debtor’s qualifying debts.
(3)
The plan must require the debtor to make payments in respect of each of the
specified debts.
(4)
It does not matter if—
(a)
the plan requires payments of different amounts to be made in respect
5
of a specified debt at different times;
(b)
the payments that the plan requires to be made in respect of a specified
debt would, if all made, repay the debt only in part.
Approval of schemes
106
Approval by supervising authority
10
(1)
The supervising authority may approve one or more debt management
schemes.
(2)
Regulations may make provision about any or all of the following—
(a)
conditions that must be met before the supervising authority may
approve a debt management scheme;
15
(b)
considerations that the supervising authority must, or must not, take
into account in deciding whether to approve a debt management
scheme.
(3)
Regulations under this section may, in particular, make provision about
conditions or considerations that relate to any matter listed in Schedule 21.
20
(4)
The supervising authority may approve a debt management scheme whether
a body is—
(a)
operating the scheme at the time of the approval, or
(b)
proposing to operate the scheme from a time in the future.
107
Applications for approval
25
(1)
Regulations may specify a procedure for making an application for approval
of a debt management scheme.
(2)
Regulations under this section may, in particular, specify a procedure that
requires any or all of the following—
(a)
an application to be made in a particular form;
30
(b)
information to be supplied in support of an application;
(c)
a fee to be paid in respect of an application.
108
Terms of approval
(1)
The approval of a debt management scheme has effect subject to any relevant
terms.
35
(2)
Relevant terms are—
(a)
the terms (if any) specified in regulations that relate to the approval,
and
(b)
the terms (if any) that the supervising authority includes in the
approval.
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Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 4 — Debt management schemes
91

(3)
Relevant terms may, in particular, deal with all or any of the following—
(a)
the start of the approval;
(b)
the expiry of the approval;
(c)
the termination of the approval, including termination because of the
breach of some other term.
5
(4)
Relevant terms may, in particular, impose requirements on the scheme
operator.
(5)
Relevant terms may, in particular, relate to any matter listed in Schedule 21.
(6)
Regulations may make provision about terms that the supervising authority
must, or must not, include in an approval.
10
Effect of plans etc.
109
Discharge from specified debts
(1)
This section applies if—
(a)
a debt repayment plan is arranged for a non-business debtor in
accordance with an approved scheme, and
15
(b)
the plan comes into effect.
(2)
The debtor is discharged from the debts that are specified in the plan.
(3)
The discharge from a particular specified debt takes effect at the time when all
the required payments have been made.
(4)
The required payments are the payments in respect of the debt that are
20
required by the provision included in the plan in accordance with section
105(3).
110
Presentation of bankruptcy petition
(1)
This section applies during the currency of a debt repayment plan arranged in
accordance with an approved scheme.
25
(2)
No qualifying creditor of the debtor is to present a bankruptcy petition against
the debtor in respect of a qualifying debt, unless—
(a)
regulations provide otherwise, or
(b)
the creditor has the permission of a county court.
(3)
A county court may give permission for the purposes of subsection (2)(b)
30
subject to such conditions as it thinks fit.
(4)
The reference to the currency of a debt repayment plan is a reference to the
period which—
(a)
begins when the plan first has effect, and
(b)
ends when the plan ceases to have effect.
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111
Remedies other than bankruptcy
(1)
This section applies in relation to a non-business debtor during a period of
protection.

Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 4 — Debt management schemes
92

(2)
No qualifying creditor of the debtor is to pursue any remedy for the recovery
of a qualifying debt, unless—
(a)
regulations provide otherwise, or
(b)
the creditor has the permission of a county court.
(3)
A county court may give permission for the purposes of subsection (2)(b)
5
subject to such conditions as it thinks fit.
(4)
This section does not have any effect in relation to bankruptcy proceedings.
112
Charging of interest etc.
(1)
This section applies in relation to a non-business debtor during a period of
protection.
10
(2)
No qualifying creditor is to charge any sum by way of interest, fee or other
charge in respect of a qualifying debt, unless—
(a)
regulations provide otherwise, or
(b)
the creditor has the permission of a county court.
(3)
A county court may give permission for the purposes of subsection (2)(b)
15
subject to such conditions as it thinks fit.
113
Stopping supplies of gas or electricity
(1)
This section applies in relation to a non-business debtor during a period of
protection.
(2)
In relation to the debtor, a domestic utility creditor is any person who—
20
(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 of that
supply.
(3)
No domestic utility creditor is to stop the supply of gas or electricity, or the
25
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 non-
payment by the debtor of charges incurred in connection with that supply after
the start of the period of protection.
(5)
The second case is where the reason for stopping a supply is unconnected with
30
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 associated
services, that is provided by the domestic utility creditor.
(6)
The third case is where regulations allow the supply to be stopped.
35
(7)
The fourth case is where a county court gives permission to stop a supply.
(8)
A county court may give permission for the purposes of subsection (6) subject
to such conditions as it thinks fit.
(9)
A supply of mains gas is a supply of the kind mentioned in section 5(1)(b) of
the Gas Act 1986 (c. 44).
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Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 4 — Debt management schemes
93

(10)
A supply of mains electricity is a supply of the kind mentioned in section
4(1)(c) of the Electricity Act 1989 (c. 29).
114
Existing county court proceedings to be stayed
(1)
This section applies if these conditions are met—
(a)
a debt repayment plan is arranged for a non-business debtor in
5
accordance with an approved scheme;
(b)
proceedings in a county court (other than bankruptcy proceedings) are
pending against the debtor in respect of a qualifying debt;
(c)
by virtue of section 111, the creditor under the qualifying debt is not
entitled to continue the proceedings in respect of the debt;
10
(d)
the county court receives notice of the debt repayment plan.
(2)
The county court must stay the proceedings.
(3)
The court may allow costs already incurred by the creditor.
(4)
Subsection (5) applies if—
(a)
the court allows such costs, and
15
(b)
the qualifying debt is a specified debt.
(5)
The operator of the approved scheme may, if requested to do so by—
(a)
the non-business debtor, or
(b)
the creditor under the qualifying debt,

add the costs to the amount specified in the plan in respect of the debt.
20
(6)
But the operator may not add the costs under subsection (5) if, under the terms
of the approved scheme, the operator is under a duty to terminate the plan.
115
Registration of plans
(1)
Regulations may make provision about the registration of either or both of the
following—
25
(a)
any request made to the operator of an approved scheme for a debt
repayment plan to be arranged in accordance with the scheme;
(b)
any debt repayment plan arranged for a non-business debtor in
accordance with an approved scheme.
(2)
In subsection (1) “registration” means registration in the register maintained
30
under section 98 of the Courts Act 2003 (c. 39) (the register of judgments and
orders etc).
(3)
Regulations under this section may amend section 98 of the 2003 Act.
116
Other debt management arrangements in force
(1)
This section applies if—
35
(a)
a debt repayment plan is arranged for a debtor in accordance with an
approved scheme, and
(b)
immediately before the plan is arranged, other debt management
arrangements are in force in respect of the debtor.
(2)
The plan is not to come into effect unless the other debt management
40
arrangements cease to be in force.

Tribunals, Courts and Enforcement Bill [HL]
Part 5 — Debt management and relief
Chapter 4 — Debt management schemes
94

(3)
Any provision (whether in the plan or elsewhere) about when the plan is to
come into effect is subject to subsection (2).
(4)
If the operator of the approved scheme is aware of the other debt management
arrangements, the operator must give the relevant authority notice that the
plan has been arranged.
5
(5)
In a case where the operator is aware of other debt management arrangements
at the time the plan is arranged, it must give the notice as soon as practicable
after the plan is arranged.
(6)
In a case where the operator becomes aware of those arrangements after the
plan is arranged, it must give the notice as soon as practicable after becoming
10
aware of them.
(7)
“Other debt management arrangements” means any of the following—
(a)
an administration order under Part 6 of the County Courts Act 1984
(c. 28);
(b)
an enforcement restriction order under Part 6A of the County Courts
15
Act 1984;
(c)
a debt relief order under Part 7A of the Insolvency Act 1986.
(8)
“The relevant authority” means—
(a)
in relation to an administration order: the proper county court (within
the meaning of Part 6 of the County Courts Act 1984);
20
(b)
in relation to an enforcement restriction order: the proper county court
(within the meaning of Part 6A of the County Courts Act 1984);
(c)
in relation to a debt relief order: the official receiver.
(9)
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
25
1986 has not yet ended.
Appeals
117
Right of appeal
(1)
This section applies if a debt repayment plan is arranged for a debtor in
accordance with an approved scheme.
30
(2)
An affected creditor may appeal to a county court against any of the
following—
(a)
the fact that the plan has been arranged;
(b)
the fact that a debt owed to the affected creditor has been specified in
the plan;
35
(c)
the terms of the plan (including any provision included in the plan in
accordance with section 105(3)).
(3)
Subsection (2)(c) does not allow an affected creditor to appeal against the fact
that a debt owed to any other creditor has been specified in the plan.
(4)
In this section “affected creditor” means the creditor under any debt which is
40
specified in the plan.