S. 1 not in force at Royal Assent, see s. 22(2)

S. 2 not in force at Royal Assent, see s. 22(2)

S. 3 not in force at Royal Assent, see s. 22(2)

S. 4 not in force at Royal Assent, see s. 22(2)

S. 5 not in force at Royal Assent, see s. 22(2)

S. 6 not in force at Royal Assent, see s. 22(2)

S. 7 not in force at Royal Assent, see s. 22(2)

S. 8 not in force at Royal Assent, see s. 22(2)

S. 9 not in force at Royal Assent, see s. 22(2)

S. 10 not in force at Royal Assent, see s. 22(2)

S. 11 not in force at Royal Assent, see s. 22(2)

S. 12 not in force at Royal Assent, see s. 22(2)

S. 13 not in force at Royal Assent, see s. 22(2)

S. 14 not in force at Royal Assent, see s. 22(2)

S. 15 not in force at Royal Assent, see s. 22(2)

S. 16 not in force at Royal Assent, see s. 22(2)

S. 17 not in force at Royal Assent, see s. 22(2)

S. 18 not in force at Royal Assent, see s. 22(2)

S. 19 not in force at Royal Assent, see s. 22(2)

S. 20 not in force at Royal Assent, see s. 22(2)

S. 21 in force at 16.7.2024, see s. 22(1)

S. 22 in force at 16.7.2024, see s. 22(1)

S. 23 in force at 16.7.2024, see s. 22(1)

http://www.legislation.gov.uk/asp/2024/9/2024-07-16Bankruptcy and Diligence (Scotland) Act 2024Statute Law Database2024-09-03Expert Participation2024-07-16Bankruptcy and Diligence (Scotland) Act 20242024 asp 9The Bill for this Act of the Scottish Parliament was passed by the Parliament on 6th June 2024 and received Royal Assent on 15th July 2024

An Act of the Scottish Parliament to make provision to establish a mental health moratorium; to modify the Bankruptcy (Scotland) Act 2016; and to modify the law of diligence.

Mental health moratorium
1Moratorium on debt recovery action: debtors who have a mental illness(1)

The Scottish Ministers must by regulations make provision establishing a moratorium on debt recovery action by creditors against individuals who have a mental illness.

(2)

Regulations under subsection (1) may (among other things) include provision about—

(a)

the eligibility criteria, or conditions, which must be met for the moratorium to apply in relation to an individual,

(b)

the types of debts in respect of which the moratorium applies,

(c)

the process for determining if the eligibility criteria, or conditions, are met (for example, by conferring functions on a person or persons of a description specified in the regulations),

(d)

the time period for which the moratorium is to apply in relation to an individual (“the moratorium period”),

(e)

the actions creditors must, may or may not take during the moratorium period in relation to an individual who is the subject of the moratorium and the consequences (if any) for creditors for taking or failing to take such actions,

(f)

the obligations on an individual who is the subject of the moratorium during the moratorium period,

(g)

the arrangements for the recording of, and access to, information that the moratorium is applying in relation to an individual,

(h)

appeals against decisions made under the regulations,

(i)

the obligations, or restrictions, on an individual or creditors following the end of the moratorium period.

(3)

Regulations under this section may—

(a)

make different provision for different purposes,

(b)

modify any enactment,

(c)

include incidental, supplementary, consequential, transitional, transitory or saving provision.

(4)

Regulations under this section are subject to the affirmative procedure.

2Procedure for first regulations under section 1(1)

The Scottish Ministers must, before laying a draft of a Scottish statutory instrument containing the first regulations under section 1 before the Scottish Parliament—

(a)

lay a copy of the proposed draft regulations before the Scottish Parliament for a period of 60 days,

(b)

have regard to any representations about the proposed draft regulations that are made to them.

(2)

When laying a draft of a Scottish statutory instrument containing the first regulations under section 1, the Scottish Ministers must also lay before the Scottish Parliament a statement setting out—

(a)

details of any representations mentioned in subsection (1)(b),

(b)

the changes (if any) they have made to the regulations in response to such representations and their reasons for making them.

(3)

In calculating any period of 60 days for the purposes of subsection (1), no account is to be taken of any time during which the Parliament is dissolved or is in recess for more than 4 days.

3Review of mental health moratorium(1)

The Scottish Ministers must, as soon as reasonably practicable after the end of the review period—

(a)

undertake a review of the operation of the mental health moratorium established under section 1,

(b)

prepare a report on that review.

(2)

The Scottish Ministers must, as soon as reasonably practicable after preparing the report—

(a)

publish the report, and

(b)

lay the report before the Scottish Parliament.

(3)

For the purposes of this section, “the review period” is the period of 5 years beginning with the day on which the first regulations under section 1 come into force.

Modification of the Bankruptcy (Scotland) Act 2016
4Process for applying for recall of an award of sequestration(1)

Part 2 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In section 29 (petitions for recall of sequestration), in subsection (4)—

(a)

in paragraph (a), after “debtor” insert “(where the debtor is not the petitioner)”,

(b)

in paragraph (b), after “any” insert “other”,

(c)

in paragraph (c), after “trustee” insert “(where the trustee is not the petitioner)”,

(d)

in paragraph (d), after “AiB” insert “(where AiB is not the petitioner)”.

(3)

In section 31 (application to Accountant in Bankruptcy for recall of sequestration)—

(a)

in subsection (3), in the opening words, before “persons” insert “other”,

(b)

in subsection (4)—

(i)

in paragraph (a), the words “(where the debtor is not the applicant)” are repealed,

(ii)

in paragraph (c), after “trustee” insert “(where AiB is not the trustee)”,

(c)

in subsection (5)—

(i)

after “granted” insert (a)

where AiB is not the trustee,

,

(ii)

at the end insert—(b)

where AiB is the trustee, under section 35(6) (subject to any conditions imposed under section 35(6B)).

.

(4)

In section 32 (application under section 31: further procedure)—

(a)

for subsection (1) substitute—(1)

This section applies where—

(a)

an application is made under section 31, and

(b)

AiB is not the trustee.

,

(b)

the heading of the section becomes Application under section 31: further procedure where Accountant in Bankruptcy is not trustee.

(5)

In section 33 (determination where amount of outlays and remuneration not agreed), in subsection (1)—

(a)

the word “and” immediately following paragraph (a) is repealed,

(b)

after paragraph (a), insert—(aa)

AiB is not the trustee, and

.

(6)

In section 34 (recall of sequestration by Accountant in Bankruptcy)—

(a)

before subsection (1), insert—A1

This section applies where AiB is not the trustee.

,

(b)

after subsection (1), insert—(1A)

Before recalling an award of sequestration AiB must take into account any representations made by an interested person within 21 days beginning with the day on which notice is given under section 31(3)(b).

,

(c)

in subsection (2)(a), for “8 weeks” substitute “9 weeks”,

(d)

the title to the section becomes Recall of sequestration where Accountant in Bankruptcy is not trustee.

(7)

In section 35 (recall where Accountant in Bankruptcy trustee)—

(a)

in subsection (1)(b)—

(i)

before “considers” insert either—(i)

receives an application under section 31, or

(ii)

,

(ii)

for “should” substitute “may”,

(b)

in subsection (2), after “must” insert (a)

where an application under section 31 is received, notify every creditor known to AiB that the application has been made within 7 days beginning with the day on which the application is received,

(b)

where AiB is acting on its own accord,

,

(c)

after subsection (2), insert—(2A)

At the same time as giving notice under subsection (2)(b), AiB must give to the persons mentioned in subsection (2B) a notice informing the recipient that the person has a right to make representations to AiB in relation to the notification within 21 days beginning with the day on which the notice is given.

(2B)

The persons are—

(a)

the debtor, and

(b)

any person who was a petitioner for, or concurred in a debtor application for, the sequestration.

,

(d)

in subsection (5)(a), for “subsection (2)” substitute “subsection (2A) or, as the case may be, section 31(3)(b)”,

(e)

after subsection (6), insert—(6A)

AiB may not recall an award of sequestration after—

(a)

where no appeal is made under section 37(5)(a), the day which is 9 weeks after the days mentioned in subsection (5)(a) have expired, or

(b)

where such an appeal is made, such later day which is 14 days after the day on which the appeal is finally determined or abandoned.

(6B)

If AiB does not under subsection (6) recall an award of sequestration, the sequestration must continue but is to be subject to such conditions as AiB thinks fit.

(6C)

Despite notice being given under subsection (2)(b), the proceedings in the sequestration are to continue as if the notification had not been made until a recall of an award of sequestration is granted under subsection (6) (subject to any conditions imposed under subsection (6B)).

,

(f)

the heading of the section becomes Recall of sequestration where Accountant in Bankruptcy is trustee.

5Recall of sequestration: payment of interest(1)

Part 2 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In section 30 (recall of sequestration by sheriff)—

(a)

in subsection (2), in paragraph (a), after “full” insert “(including the payment of any interest payable on the debtor’s debts and the payment of the outlays and remuneration of the interim trustee and of the trustee)”, and

(b)

in subsection (4), in paragraph (a), after “full of” insert (i)

any interest payable on the debtor’s debts (see section 37A), and

(ii)

.

(3)

In section 32(4) (application under section 31: further procedure)—

(a)

in paragraph (b), for “(including” to the end of that paragraph substitute , including the payment in full of—(i)

any interest payable on the debtor’s debts (see section 37A),

(ii)

the outlays and remuneration of the interim trustee and of the trustee,

, and

(b)

in paragraph (c)(ii), after “payment of” insert “any interest payable on the debtor’s debts and payment of”.

(4)

In section 34(1) (recall of sequestration by Accountant in Bankruptcy), in paragraph (a), for “(including the outlays and remuneration of the interim trustee and the trustee)” substitute , including the payment in full of—(i)

any interest payable on the debtor’s debts (see section 37A),

(ii)

the outlays and remuneration of the interim trustee and of the trustee,

.

(5)

In section 35 (recall where Accountant in Bankruptcy trustee)—

(a)

in subsection (1), in paragraph (b), after “including” insert “the payment of any interest payable on the debtor’s debts and the payment of”, and

(b)

in subsection (6), in paragraph (a), for “(including” to the end of that paragraph substitute , including the payment in full of—(i)

any interest payable on the debtor’s debts (see section 37A),

(ii)

the outlays and remuneration of the interim trustee and of the trustee,

.

(6)

After section 37, insert—

37AInterest(1)

This section applies for the purpose of determining the amount of interest payable on the debtor’s debts in relation to a recall of an award of sequestration.

(2)

Interest, between the date of sequestration and the date of payment of the debt, is payable at the rate specified in section 129(10), unless subsection (3) applies.

(3)

This subsection applies if the whole of the debt is paid in full within 6 months after the date of the award of sequestration, in which case interest is not payable on the debt.

(4)

For the avoidance of doubt, if only part of the debt is paid within 6 months after the date of the award of sequestration, interest is payable on the whole of the debt (including any part of the debt already paid since the award) in accordance with subsection (2).

.

6When sequestration is awarded: minimal asset process(1)

Section 22 (when sequestration is awarded) of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In subsection (1)(b), for “2(8)” substitute “2(2) or (8)”.

7Petition for sequestration: citation of debtor(1)

Section 22 (when sequestration is awarded) of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

For subsection (4) substitute—(4)

The debtor must be cited no fewer than 6 days before the date specified under subsection (3).

.

8Gratuitous alienations: right acquired in good faith and for value(1)

Section 98 (gratuitous alienations) of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In subsection (7), for “(6)” substitute “(5)”.

9Time periods for appeals against decisions by AiB(1)

The Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In section 69 (resignation or death of trustee)—

(a)

in subsection (9), for “subsection (11)” substitute “subsections (11) and (12)”,

(b)

for subsection (12) substitute—(12)

T or T's representatives, NT, the debtor or any creditor may, within 14 days beginning with the date of any decision of AiB in an appeal under subsection (11)(a), appeal to the sheriff against that decision.

.

(3)

In section 134 (appeal against determination as to outlays and remuneration payable to trustee)—

(a)

for subsection (3) substitute—(3)

The trustee, the debtor or any creditor may, within 14 days beginning with the date of any decision of AiB in an appeal under subsection (1)(a), appeal to the sheriff against that decision.

,

(b)

in subsection (4), after “(1)” insert “or (3)”,

(c)

after subsection (5), insert—(6)

The decision of the sheriff on an appeal under subsection (1)(b) or (3) is final.

.

10Protected trust deeds: information and time to be provided to debtor(1)

Part 14 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In section 167 (statements in and advice regarding trust deed)—

(a)

in subsection (3), for paragraph (b) substitute—(b)

the trustee must provide the debtor with—

(i)

a copy of a debt advice and information package, and

(ii)

a copy of a trust deed information document,

(ba)

the trustee must give the debtor adequate time to consider the advice and material provided under paragraphs (a) and (b),

, and

(b)

after subsection (3), insert—(4)

For the purposes of subsection (3) a “trust deed information document” means a document containing such information (including information regarding the consequences of granting a trust deed), and in such form, as the Scottish Ministers may determine.

(5)

The trustee must have regard to any guidance issued by the Scottish Ministers about giving debtors adequate time to consider the advice and material provided under paragraphs (a) and (b) of subsection (3).

(6)

The Scottish Ministers must publish any guidance issued under subsection (5).

.

11Debtor not traced: former trustee’s outlays and remuneration(1)

Section 142 (debtor not traced: new trustee) of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In subsection (6)(c), after “133” insert “(there being no effect on any outlays and remuneration paid to the former trustee before the issue of the notice)”.

12Failure of debtor to co-operate with trustee in sequestration(1)

The Bankruptcy (Scotland) Act 2016 is modified by subsections (2) and (3).

(2)

After section 147, insert—Failure of debtor to co-operate with trustee

147ADebtor fails to co-operate: Accountant in Bankruptcy appointment as new trustee(1)

This section applies where—

(a)

AiB is not the trustee in the sequestration,

(b)

the period of 5 years beginning with the date of sequestration of a debtor’s estate has expired, and

(c)

the debtor has not been discharged from that sequestration.

(2)

The trustee in the sequestration may apply to AiB for authority to resign office on account of the debtor’s failure to co-operate.

(3)

An application under subsection (2) must be made in the prescribed form and include information about—

(a)

the nature and the extent of the debtor’s failure to co-operate with the trustee,

(b)

the actions taken by the trustee to secure the debtor’s co-operation,

(c)

any other matters that the trustee considers relevant, and

(d)

details of every creditor known to the trustee.

(4)

Before making an application under subsection (2), the trustee must—

(a)

notify the debtor by sending an intention to resign notice, and

(b)

give an intention to resign notice to every creditor known to the trustee.

(5)

An intention to resign notice must—

(a)

be in the prescribed form, and

(b)

include a statement informing the recipient that the recipient has a right to make representations to AiB in relation to the application within 14 days beginning with the day on which the application is made.

(6)

After receiving an application under subsection (2), AiB must—

(a)

take into account any representations made by an interested person within 14 days beginning with the day on which the application is made, and

(b)

if satisfied of the matters mentioned in subsection (7), issue to the trustee who made the application a notice in the prescribed form granting the application.

(7)

The matters are—

(a)

that the debtor has failed to co-operate with the trustee to such an extent that the trustee is prevented from carrying out the trustee's functions under this Act,

(b)

that the failure is likely to continue, and

(c)

that the trustee has taken all reasonable steps to secure the debtor’s co-operation.

(8)

AiB—

(a)

may request such further information from the trustee as AiB considers necessary to make a decision under subsection (6), and

(b)

must notify the trustee, the debtor and every creditor known to AiB of its decision under subsection (6).

(9)

Where a notice is issued under subsection (6)(b), 14 days after the notice is given—

(a)

AiB is deemed to be the trustee,

(b)

AiB must notify the debtor and every creditor known to AiB that AiB is deemed to be the trustee,

(c)

AiB must make an appropriate entry in the register of insolvencies,

(d)

the former trustee is not entitled to recover, other than by a claim in the final distribution of the debtor’s estate, outlays and remuneration payable under sections 132 and 133 (there being no effect on any outlays and remuneration paid to the former trustee before the issue of the notice),

(e)

subsections (9) to (13) of section 69 apply in relation to the appointment of AiB as the new trustee as they apply in relation to the appointment of a new trustee under that section,

(f)

section 116 applies as if there were substituted for subsection (2)—(2)

AiB may at any time before the discharge of the debtor require the debtor to give an account in writing, in such form as may be prescribed, of the debtor’s current state of affairs.

, and

(g)

section 138 applies to the sequestration with the modifications in subsection (10).

(10)

The modifications are—

(a)

in subsection (2), the words “after the date which is 12 months after the date on which sequestration is awarded” are omitted,

(b)

in subsection (3), for “must, as soon as practicable after the date which is 12 months after the date on which sequestration is awarded” substitute “may, if the debtor co-operates with AiB to such an extent that AiB is able to carry out the trustee’s functions under this Act”,

(c)

in subsection (6), for “must, as soon as practicable after the date which is 12 months after the date of the refusal” substitute “may, at any time after a refusal, if the debtor co-operates with AiB to such an extent that AiB is able to carry out the trustee's functions under this Act”.

147BAccountant in Bankruptcy appointment as new trustee: review and appeal(1)

The trustee may apply to AiB for a review of a decision under section 147A(6) to refuse an application.

(2)

The debtor or any creditor may apply to AiB for a review of a decision under section 147A(6) to grant an application.

(3)

Any application under subsection (1) or (2) must be made within 14 days beginning with the day of notification of the decision in question.

(4)

If an application for review under subsection (2) is made, the grant of the application is suspended until the determination of that review by AiB.

(5)

If an application for a review under subsection (1) or (2) is made, AiB must—

(a)

take into account any representations made by an interested person within 21 days beginning with the day on which the application is made, and

(b)

confirm or revoke the decision within 28 days beginning with the day on which the application is made.

(6)

If, under subsection (5)(b), AiB—

(a)

revoke a decision to grant an application, AiB must revoke the notice given under section 147A(6)(b) granting the application,

(b)

revoke a decision to refuse an application, AiB must issue a notice under section 147A(6)(b) granting the application, or

(c)

confirm a decision to grant an application, section 147A(9) applies as if for the words “14 days after the notice is given” there were substituted “14 days after the AiB decision under section 147B(5)(b).

(7)

The debtor, the trustee or any creditor may appeal to the sheriff against any decision of AiB under subsection (5)(b) within 14 days beginning with the day of the decision.

(8)

If an appeal relating to a decision mentioned in subsection (6)(b) or (c) is made, the grant of the application is suspended until the determination of that appeal.

(9)

If, on an appeal under subsection (7), the sheriff determines that an application which has been refused should be granted—

(a)

the sheriff must order AiB to issue a notice under section 147A(6)(b) granting the application, and

(b)

section 147A(9) applies as if the words “14 days after the notice is given” were omitted.

(10)

If, on an appeal under subsection (7), the sheriff determines that an application which has been granted should be refused, the sheriff must order AiB to revoke the notice given under section 147A(6)(b) granting the application.

(11)

The sheriff clerk must send AiB a copy of the sheriff’s decree.

(12)

The decision of the sheriff on an appeal under subsection (7) is final.

147CDebtor fails to co-operate with AiB as trustee(1)

This section applies where—

(a)

AiB is the trustee but was not appointed as trustee under section 147A,

(b)

the period of 5 years beginning with the date of sequestration a debtor’s estate has expired, and

(c)

the debtor has not been discharged from that sequestration.

(2)

AiB, if satisfied of the matters mentioned in subsection (3), may make a determination that the debtor has failed to co-operate.

(3)

The matters are—

(a)

that the debtor has failed to co-operate with AiB as trustee to such an extent that AiB is prevented from carrying out the AiB’s functions as trustee under this Act,

(b)

that the failure is likely to continue, and

(c)

that AiB has taken all reasonable steps to secure the debtor’s co-operation.

(4)

If AiB makes a determination under subsection (2)

(a)

AiB must notify the debtor and every creditor known to AiB that AiB has made a determination under subsection (2), and

(b)

section 116 applies as if there were substituted for subsection (2)—(2)

AiB may at any time before the discharge of the debtor require the debtor to give an account in writing, in such form as may be prescribed, of the debtor’s current state of affairs.

, and

(c)

section 138(6) applies as if for the words “must, as soon as practicable after the date which is 12 months after the date of the refusal” there were substituted “may, at any time after a refusal, if the debtor co-operates with AiB to such an extent that AiB is able to carry out the trustee's functions under this Act.

.

(3)

In section 214 of the Bankruptcy (Scotland) Act 2016, after paragraph (2)(q) insert—(qa)

section 147B(5),

.

(4)

In calculating a period of 5 years for the purposes of section 147A(1)(b) or section 147C(1)(b) of the Bankruptcy (Scotland) Act 2016, any part of that period which is before the commencement of subsection (1) may be included.

13Commissioners: disqualification from office where AiB is trustee(1)

Part 4 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)

In section 76 (commissioners), in the opening words, after “sequestration” insert “where AiB is not the trustee”.

(3)

In section 77 (election, resignation and removal of commissioners), after subsection (6), insert—(6A)

A commissioner ceases to hold office if AiB is, or becomes, the trustee.

.

Arrestment and action of furthcoming
14Service of documents and arrestee’s duty of disclosure(1)

Part 3A of the Debtors (Scotland) Act 1987 is modified as follows.

(2)

After section 73C, insert—

73CAService of documents for purposes of sections 73B and 73C(1)

In relation to the service of documents for the purposes of sections 73B and 73C, the documents must be served on the arrestee either—

(a)

by being sent to the proper address of the arrestee—

(i)

by a registered post service (as defined in section 125(1) of the Postal Services Act 2000), or

(ii)

by a postal service which provides for the delivery of the document to be recorded, or

(b)

by being transmitted to the arrestee electronically.

(2)

But, despite subsection (1), if it is impossible or impracticable for the documents to be served on the arrestee in either of the ways described in that subsection, service of the documents may instead be effected by any other competent mode of service.

(3)

For the purpose of subsection (1)(a), the proper address of the arrestee is—

(a)

in the case of a body corporate, the address of the registered or principal office of the body,

(b)

in the case of a partnership, the address of the principal office of the partnership,

(c)

in any other case, the last known address of the arrestee.

(4)

Where a document is served as mentioned in subsection (1)(a) on an address in the United Kingdom it is to be taken to have been received 48 hours after it is sent unless the contrary is shown.

(5)

For the purpose of subsection (1)(b)—

(a)

electronic transmission of a document must be effected in a way that the arrestee has indicated to the creditor or officer of court that the arrestee is willing to receive the document,

(b)

the arrestee’s indication of willingness to receive a document in a particular way may be—

(i)

specific to the document in question or generally applicable to documents of that kind,

(ii)

expressed specifically to the creditor or officer of court or generally (for example on a website),

(iii)

inferred from the arrestee having previously been willing to receive documents from the creditor or officer of court in that way and not having indicated unwillingness to do so again,

(c)

the creditor or officer of court’s uploading of a document to an electronic storage system from which the arrestee is able to download the document may constitute electronic transmission of the document, where the arrestee is sent a notification that the document has been uploaded in that way,

(d)

a notice transmitted electronically is taken to have been received on the day of transmission unless the contrary is shown.

.

(3)

In section 73G(4) (arrestee’s duty of disclosure)—

(a)

in paragraph (a), the word “and” after sub-paragraph (ii) is repealed,

(b)

after paragraph (b), insert—(c)

where no property is attached, the reason why (for example, the arrestee does not hold funds standing to the credit of the debtor, or does hold such funds but the sum held is less than sum mentioned in section 73F(3)(a)).

.

(4)

In section 73H (failure to disclose information)—

(a)

in subsection (1)(b), for “mentioned in section 73F(4) of this Act” substitute “of £500”,

(b)

after subsection (4), insert—(5)

The Scottish Ministers may by regulations modify subsection (1)(b) so as to vary the sum mentioned there.

.

15Attachment of property or funds: duty to consult and power to make further provision(1)

The Scottish Ministers must, within 1 year of this section coming into force—

(a)

consult such persons as they consider appropriate about the merits of—

(i)

attaching particular types of funds or other property in pursuance of any provision under Part 3A of the Debtors (Scotland) Act 1987 (“the 1987 Act”),

(ii)

establishing, or modifying, a process for a debtor to apply to a decision-maker for an order requiring an arrestee to release to a debtor funds due to, or other property of, the debtor attached by an arrestment in accordance with that Part,

(b)

after having had regard to the views expressed, prepare a report which—

(i)

summarises the consultation responses received, and

(ii)

sets out what steps (if any) the Scottish Ministers propose to take as a result of the findings (including, for example, the exercise of their regulation making powers under section 73U of the 1987 Act to modify Part 3A of that Act).

(2)

The Scottish Ministers must, as soon as reasonably practicable after preparing the report, lay the report before the Scottish Parliament.

(3)

The Scottish Ministers must comply with the duties in subsections (1) and (2) before laying a draft of a Scottish statutory instrument containing the first regulations under section 73U of the 1987 Act before the Scottish Parliament.

(4)

The Debtors (Scotland) Act 1987 is modified by subsection (5).

(5)

After section 73T, insert—

73UPower to make provision about attaching particular property or funds(1)

The Scottish Ministers may by regulations modify this Part to make provision—

(a)

about the types of funds or other property that may not be attached by an arrestment,

(b)

establishing, or modifying, a process for a debtor to apply to a person specified in the regulations (a “decision-maker”) for an order requiring an arrestee to release to a debtor funds due to, or other property of, the debtor attached by an arrestment.

(2)

Regulations under subsection (1) may (among other things)—

(a)

in respect of regulations under paragraph (a) of that subsection, include provision specifying—

(i)

cases or circumstances in which particular funds or property may not be attached by an arrestment,

(ii)

particular types of funds which must be disregarded when calculating the protected minimum sum mentioned in section 73F(3)(a),

(b)

in respect of regulations under paragraph (b) of that subsection, include provision about—

(i)

the manner in which debtors may apply to a decision-maker for an order,

(ii)

the information to be provided as part of an application,

(iii)

the factors which a decision-maker must have regard to in deciding whether to give an order (for example, that the attachment of particular funds or property is unduly harsh),

(iv)

the process for determining if an order should be given (for example, by conferring a discretion on a decision-maker or other person to decide any matter),

(v)

how an application for an order may be challenged,

(vi)

the effect of an order given by the decision-maker (including the obligations, or restrictions, on a debtor, creditor or arrestee to whom the arrestment concerned), and

(vii)

appeals against an order (including providing for the fees payable in relation to such an appeal).

(3)

Regulations under subsection (1) may—

(a)

make different provision for different purposes,

(b)

include incidental, supplementary, consequential, transitional, transitory or saving provision.

(4)

Regulations under subsection (1) are subject to the affirmative procedure (as defined by section 29 of the Interpretation and Legislative Reform (Scotland) Act 2010).

.

Diligence against earnings
16Service of documents and employers’ etc. duty of disclosure(1)

Part 3 of the Debtors (Scotland) Act 1987 is modified as follows.

(2)

In section 70 (execution and intimation of copies)—

(a)

for subsection (3), substitute—(3)

An earnings arrestment schedule or a current maintenance arrestment schedule must be served on an employer either—

(a)

by being sent to the proper address of the employer—

(i)

by a registered post service (as defined in section 125(1) of the Postal Services Act 2000), or

(ii)

by a postal service which provides for the delivery of the document to be recorded, or

(b)

by being transmitted to the employer electronically.

(3A)

But, despite subsection (3), if it is impossible or impracticable for the documents to be served on the employer in either of the ways described in that subsection, service of the documents may instead be effected by any other competent mode of service.

(3B)

For the purpose of subsection (3)(a), the proper address of the employer is—

(a)

in the case of a body corporate, the address of the registered or principal office of the body,

(b)

in the case of a partnership, the address of the principal office of the partnership,

(c)

in any other case, the last known address of the employer.

(3C)

Where a document is served as mentioned in subsection (3)(a) on an address in the United Kingdom it is to be taken to have been received 48 hours after it is sent unless the contrary is shown.

(3D)

For the purpose of subsection (3)(b)—

(a)

electronic transmission of a document must be effected in a way that the employer has indicated to the officer of court that the employer is willing to receive the document,

(b)

the employer’s indication of willingness to receive a document in a particular way may be—

(i)

specific to the document in question or generally applicable to documents of that kind,

(ii)

expressed specifically to the officer of court or generally (for example on a website),

(iii)

inferred from the employer having previously been willing to receive documents from the officer of court in that way and not having indicated unwillingness to do so again,

(c)

the officer of court’s uploading of a document to an electronic storage system from which the employer is able to download the document may constitute electronic transmission of the document, where the employer is sent a notification that the document has been uploaded in that way,

(d)

a notice transmitted electronically is taken to have been received on the day of transmission unless the contrary is shown.

, and

(b)

for subsection (5), substitute—(5)

Section 12(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 applies to the service of an earnings arrestment schedule, a current maintenance arrestment schedule or a conjoined arrestment order as it applies to the execution of an attachment except where such service is by post or transmitted electronically.

.

(3)

In section 70A (employer’s duty to provide information)—

(a)

in subsection (1)—

(i)

for “Where an employer” substitute “This section applies where a person”,

(ii)

the words from “the employer shall” to the end of the subsection are repealed,

(b)

for subsection (2) substitute—(1A)

If—

(a)

the debtor is not employed by the person who received the schedule or order, or

(b)

the debtor is employed by that person but, because of the net earnings of the debtor, the sum to be deducted on any pay-day under this Part of this Act is, or is expected to be, nil,

the person must, within 21 days of the order or schedule being served, send to the relevant person the information mentioned in paragraph (a) or (b) (as appropriate) in (or as nearly as may be in) such form as may be prescribed.

(2)

Otherwise, the employer must send to the relevant person the information mentioned in subsection (3) at each of the following times—

(a)

as soon as is reasonably practicable following the order or schedule being served, and

(b)

subsequently, provided the debt has not been extinguished, on or as soon as is reasonably practicable after the dates mentioned in subsection (4),

in (or as nearly as may be in) such form as may be prescribed.

,

(c)

in subsection (3)—

(i)

in the opening words, for “(1)” substitute “(2)”,

(ii)

in paragraph (b)(i), for “(1)” substitute “(2)(a)”,

(iii)

in paragraph (b)(ii), for “(2)” substitute “(2)(b)”,

(d)

in subsection (4), for “(2)” substitute “(2)(b)”,

(e)

in subsection (5)—

(i)

in the opening words, for “subsections (1) and (2)” substitute “subsection (2)”,

(ii)

in the opening words, for the words from “give notice” to “the sheriff clerk” substitute “send to the relevant person notice—”,

(iii)

after paragraph (b), insert—

in (or as nearly as may be in) such form as may be prescribed.

,

(f)

after subsection (5), insert—(5A)

But subsection (5) does not apply where a notice has been given to the relevant person under subsection (1A)(b).

,

(g)

in subsection (6), for “subsection (1) or (2)” substitute “subsection (2)”,

(h)

after subsection (6), insert—(7)

In this section—

(a)

relevant person” means—

(i)

the creditor, or

(ii)

in the case of a conjoined arrestment order, the sheriff clerk,

(b)

prescribed” means prescribed by regulations made by the Scottish Ministers.

,

(i)

the heading of the section becomes Employers etc.: duty to provide information.

(4)

In section 70B (failure to give notice under section 70A(5))—

(a)

before subsection (1), insert—A1

Where a person fails without reasonable excuse to send the information required under section 70A(1A) or (2) of this Act, the sheriff may, on the application of any creditor, make an order requiring the person who received the schedule or order—

(a)

to send the information to the creditor, and

(b)

to pay to the creditor—

(i)

the sum due to the creditor by the debtor, or

(ii)

the sum of £500,

whichever is the lesser.

,

(b)

in subsection (1)(b), for the words from “an amount” to the end of that paragraph substitute (i)

the sum due to the creditor by the debtor, or

(ii)

the sum of £500,

whichever is the lesser.

,

(c)

in subsection (2), in the opening words, for “subsection (1)(b)” substitute “subsection (A1)(b) or (1)(b)”,

(d)

in subsection (3)—

(i)

for “An employer” substitute “A person”,

(ii)

for “subsection (1)” substitute “subsection (A1)(b) or (1)(b)”,

(e)

after subsection (3), insert—(4)

The Scottish Ministers may by regulations modify subsection (A1)(b)(ii) or (1)(b)(ii) so as to vary the sums mentioned there.

,

(f)

the heading of the section becomes Failure to give notice under section 70A.

Diligence on the dependence
17Provision of debt advice and information package(1)

Part 1A of the Debtors (Scotland) Act 1987 is modified as follows.

(2)

In section 15F (hearing on application)—

(a)

in subsection (3)—

(i)

the word “and” immediately following paragraph (b) is repealed,

(ii)

after paragraph (c), insert ; and(d)

where the debtor is an individual, that the creditor has provided the debtor with a debt advice and information package.

,

(b)

after subsection (7), insert—(8)

In this section and in section 15K, “debt advice and information package” means the debt advice and information package referred to in section 10(5) of the Debt Arrangement and Attachment (Scotland) Act 2002.

.

(3)

In section 15K (recall or restriction of diligence on dependence)—

(a)

after subsection (5), insert—(5A)

Where subsection (5B) applies and the court is satisfied that the creditor has not provided the debtor with a debt advice and information package it—

(a)

must make an order—

(i)

recalling the warrant, and

(ii)

if an arrestment or inhibition has been executed in pursuance of the warrant, recalling that arrestment or inhibition, and

(b)

may make an order ancillary to any order mentioned in paragraph (a).

(5B)

This subsection applies where—

(a)

the debtor is an individual, and

(b)

the hearing is a hearing fixed under section 15E(4)(a).

,

(b)

in subsection (10), after “(5),” insert “(5A),”.

Exceptional attachment
18Notice and redemption periods(1)

Part 3 of the Debt Arrangement and Attachment (Scotland) Act 2002 is modified as follows.

(2)

In section 53 (removal of articles attached in dwellinghouse), in subsection (2), at the end insert “(which is to be not less than 7 days from the date on which the notice is given)”.

(3)

In section 56 (redemption), in subsection (1), for the words from “, within 7 days” to the end of that subsection substitute (a)

where an article was removed immediately by the officer from the dwellinghouse in which it was attached, to redeem that article within 7 days of the date on which it was attached,

(b)

where an article was not removed immediately by the officer from the dwellinghouse in which it was attached, to redeem that article within 14 days of the date on which it was attached.

.

Money attachment
19Money attachment when premises are open(1)

Section 176 (when money attachment not competent) of the Bankruptcy and Diligence etc. (Scotland) Act 2007 is modified as follows.

(2)

After subsection (2), insert—(2A)

But—

(a)

despite subsection (1), it is competent to execute a money attachment in any premises in which a trade or business is carried on on any day the premises are open (whether to the public generally or not) for the purposes of the trade or business, and

(b)

despite subsection (2), the execution of a money attachment may be commenced or continued in such premises at any time the premises are open (whether to the public generally or not) for the purposes of the trade or business, without the officer of court obtaining prior authority of the sheriff.

.

Arrestment of ships
20Arrestment of ships on a Sunday

Any rule of law that prevents the execution of an arrestment on a Sunday ceases to have effect insofar as it relates to the arrestment of ships.

Final provisions
21Ancillary provision(1)

The Scottish Ministers may by regulations make any incidental, supplementary, consequential, transitional, transitory or saving provision they consider appropriate for the purposes of, in connection with or for giving full effect to this Act.

(2)

Regulations under this section may—

(a)

make different provision for different purposes,

(b)

modify any enactment (including this Act).

(3)

The regulations—

(a)

are subject to the affirmative procedure if they add to, replace or omit any part of the text of an Act,

(b)

are subject to the negative procedure if they do not.

22Commencement(1)

This section and sections 21 and 23 come into force on the day after Royal Assent.

(2)

The other provisions of this Act come into force on such day as the Scottish Ministers may by regulations appoint.

(3)

Regulations under subsection (2) may—

(a)

include transitional, transitory or saving provision,

(b)

make different provision for different purposes.

23Short title

The short title of this Act is the Bankruptcy and Diligence (Scotland) Act 2024.

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<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-ab51886c75ee1b6abd8043585bf0496e" marker="I1">
<p>
S. 1 not in force at Royal Assent, see
<ref eId="n323dab1d5642f7e" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
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<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-0170a2bbc0ee0dc2101f86b935b1fb9f" marker="I2">
<p>
S. 2 not in force at Royal Assent, see
<ref eId="ne0c82fa87bff5b5f" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-650c849c25af5d4dcd84d0a0530d417a" marker="I3">
<p>
S. 3 not in force at Royal Assent, see
<ref eId="n9e4a58d10c7a1264" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-385b7d3ed4108a1a074b6408414079a6" marker="I4">
<p>
S. 4 not in force at Royal Assent, see
<ref eId="n3813f173e3383f2f" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-c802b0451528f6c8b641a920047b7ccf" marker="I5">
<p>
S. 5 not in force at Royal Assent, see
<ref eId="n84a2caf06db9fc00" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-1d2c6384564967538385c8d45b4192fb" marker="I6">
<p>
S. 6 not in force at Royal Assent, see
<ref eId="nd10090458c0f15" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-b4b8a4c6a3258ede0c9ea57f8ada2b0f" marker="I7">
<p>
S. 7 not in force at Royal Assent, see
<ref eId="nffa54fc61303f378" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-9b441ac24a3c58dfbb3528c54e1c9433" marker="I8">
<p>
S. 8 not in force at Royal Assent, see
<ref eId="n48c476b76a8d8e3" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-56fb5cc098a50eab8b23d69d56dfe498" marker="I9">
<p>
S. 9 not in force at Royal Assent, see
<ref eId="n7f9286de9c06f0ec" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-9dc9e5013cc099dbf29c2a348be90df3" marker="I10">
<p>
S. 10 not in force at Royal Assent, see
<ref eId="nfe6145b19ec72cad" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-a6c37c01a5f76c735c181afeaeff0e01" marker="I11">
<p>
S. 11 not in force at Royal Assent, see
<ref eId="n9857e4b32d823264" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-98659292b5b6421af2aeb3767accb4d5" marker="I12">
<p>
S. 12 not in force at Royal Assent, see
<ref eId="n99eeeb66c411f752" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-46f025e8ed4cac3c75fc52ee40965099" marker="I13">
<p>
S. 13 not in force at Royal Assent, see
<ref eId="ne839656b67aba392" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-a3cf6647d3f403244044fd1bf752d071" marker="I14">
<p>
S. 14 not in force at Royal Assent, see
<ref eId="n6dcc52fe09e98f28" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-37396edd4d9bc137aea12c4bc39d4ce1" marker="I15">
<p>
S. 15 not in force at Royal Assent, see
<ref eId="n9444820006c5ece4" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-7af9724702332e9eaadd0fbe333b8d69" marker="I16">
<p>
S. 16 not in force at Royal Assent, see
<ref eId="n62072aeb2b85562" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-0635ed634f4f85012ca2cf978e3106a2" marker="I17">
<p>
S. 17 not in force at Royal Assent, see
<ref eId="n7c5133c8e5e1c938" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-f32c34a42c4d9b512c9d0f1f58b2388b" marker="I18">
<p>
S. 18 not in force at Royal Assent, see
<ref eId="n1aa21a5a330c3c91" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-7c40782c6f69102bd0d777d4c02da892" marker="I19">
<p>
S. 19 not in force at Royal Assent, see
<ref eId="n77c588b3aa045d46" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-f4f5c0cd5896d7de9eda4f54f71bc9d9" marker="I20">
<p>
S. 20 not in force at Royal Assent, see
<ref eId="nd27fcfc3a5208602" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/2">s. 22(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-be6503b3e7e76ddcd15349ff07f3c8de" marker="I21">
<p>
S. 21 in force at 16.7.2024, see
<ref eId="nc1ce1b8bec7e5d11" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/1">s. 22(1)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-88187366e3b6b39053087d3ab97a741e" marker="I22">
<p>
S. 22 in force at 16.7.2024, see
<ref eId="n8a01ea5f8b242dc4" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/1">s. 22(1)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-384ff5bf1e14827fffcc8ef897c0263c" marker="I23">
<p>
S. 23 in force at 16.7.2024, see
<ref eId="n3609ab2cca7fbf5a" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2024/9/section/22/1">s. 22(1)</ref>
</p>
</note>
</notes>
<proprietary xmlns:ukm="http://www.legislation.gov.uk/namespaces/metadata" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dct="http://purl.org/dc/terms/" source="#">
<dc:identifier>http://www.legislation.gov.uk/asp/2024/9/2024-07-16</dc:identifier>
<dc:title>Bankruptcy and Diligence (Scotland) Act 2024</dc:title>
<dc:publisher>Statute Law Database</dc:publisher>
<dc:modified>2024-09-03</dc:modified>
<dc:contributor>Expert Participation</dc:contributor>
<dct:valid>2024-07-16</dct:valid>
<ukm:PrimaryMetadata>
<ukm:DocumentClassification>
<ukm:DocumentCategory Value="primary"/>
<ukm:DocumentMainType Value="ScottishAct"/>
<ukm:DocumentStatus Value="revised"/>
</ukm:DocumentClassification>
<ukm:Year Value="2024"/>
<ukm:Number Value="9"/>
<ukm:EnactmentDate Date="2024-07-15"/>
<ukm:ISBN Value="9780105904236"/>
</ukm:PrimaryMetadata>
<ukm:Notes>
<ukm:Note IdURI="http://www.legislation.gov.uk/id/asp/2024/9/notes" DocumentURI="http://www.legislation.gov.uk/asp/2024/9/notes"/>
<ukm:Alternatives>
<ukm:Alternative URI="http://www.legislation.gov.uk/asp/2024/9/pdfs/aspen_20240009_en.pdf" Date="2024-08-07" Title="Explanatory Note" Size="649750"/>
</ukm:Alternatives>
</ukm:Notes>
<ukm:Alternatives>
<ukm:Alternative URI="http://www.legislation.gov.uk/asp/2024/9/pdfs/asp_20240009_en.pdf" Date="2024-07-17" Size="1350089" Print="true"/>
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<ukm:Statistics>
<ukm:TotalParagraphs Value="29"/>
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</meta>
<preface eId="preface">
<block name="title">
<docTitle>Bankruptcy and Diligence (Scotland) Act 2024</docTitle>
</block>
<block name="number">
<docNumber>2024 asp 9</docNumber>
</block>
<block name="dateOfEnactment" refersTo="#date-enacted">
<docDate date="2024-07-15">The Bill for this Act of the Scottish Parliament was passed by the Parliament on 6th June 2024 and received Royal Assent on 15th July 2024</docDate>
</block>
<longTitle>
<p>An Act of the Scottish Parliament to make provision to establish a mental health moratorium; to modify the Bankruptcy (Scotland) Act 2016; and to modify the law of diligence.</p>
</longTitle>
</preface>
<body eId="body">
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-mental-health-moratorium">
<heading>Mental health moratorium</heading>
<section eId="section-1">
<num>1</num>
<heading>Moratorium on debt recovery action: debtors who have a mental illness</heading>
<subsection eId="section-1-1">
<num>(1)</num>
<content>
<p>The Scottish Ministers must by regulations make provision establishing a moratorium on debt recovery action by creditors against individuals who have a mental illness.</p>
</content>
</subsection>
<subsection eId="section-1-2">
<num>(2)</num>
<intro>
<p>Regulations under subsection (1) may (among other things) include provision about—</p>
</intro>
<level class="para1" eId="section-1-2-a">
<num>(a)</num>
<content>
<p>the eligibility criteria, or conditions, which must be met for the moratorium to apply in relation to an individual,</p>
</content>
</level>
<level class="para1" eId="section-1-2-b">
<num>(b)</num>
<content>
<p>the types of debts in respect of which the moratorium applies,</p>
</content>
</level>
<level class="para1" eId="section-1-2-c">
<num>(c)</num>
<content>
<p>the process for determining if the eligibility criteria, or conditions, are met (for example, by conferring functions on a person or persons of a description specified in the regulations),</p>
</content>
</level>
<level class="para1" eId="section-1-2-d">
<num>(d)</num>
<content>
<p>the time period for which the moratorium is to apply in relation to an individual (“the moratorium period”),</p>
</content>
</level>
<level class="para1" eId="section-1-2-e">
<num>(e)</num>
<content>
<p>the actions creditors must, may or may not take during the moratorium period in relation to an individual who is the subject of the moratorium and the consequences (if any) for creditors for taking or failing to take such actions,</p>
</content>
</level>
<level class="para1" eId="section-1-2-f">
<num>(f)</num>
<content>
<p>the obligations on an individual who is the subject of the moratorium during the moratorium period,</p>
</content>
</level>
<level class="para1" eId="section-1-2-g">
<num>(g)</num>
<content>
<p>the arrangements for the recording of, and access to, information that the moratorium is applying in relation to an individual,</p>
</content>
</level>
<level class="para1" eId="section-1-2-h">
<num>(h)</num>
<content>
<p>appeals against decisions made under the regulations,</p>
</content>
</level>
<level class="para1" eId="section-1-2-i">
<num>(i)</num>
<content>
<p>the obligations, or restrictions, on an individual or creditors following the end of the moratorium period.</p>
</content>
</level>
</subsection>
<subsection eId="section-1-3">
<num>(3)</num>
<intro>
<p>Regulations under this section may—</p>
</intro>
<level class="para1" eId="section-1-3-a">
<num>(a)</num>
<content>
<p>make different provision for different purposes,</p>
</content>
</level>
<level class="para1" eId="section-1-3-b">
<num>(b)</num>
<content>
<p>modify any enactment,</p>
</content>
</level>
<level class="para1" eId="section-1-3-c">
<num>(c)</num>
<content>
<p>include incidental, supplementary, consequential, transitional, transitory or saving provision.</p>
</content>
</level>
</subsection>
<subsection eId="section-1-4">
<num>(4)</num>
<content>
<p>Regulations under this section are subject to the affirmative procedure.</p>
</content>
</subsection>
</section>
<section eId="section-2">
<num>2</num>
<heading>Procedure for first regulations under section 1</heading>
<subsection eId="section-2-1">
<num>(1)</num>
<intro>
<p>The Scottish Ministers must, before laying a draft of a Scottish statutory instrument containing the first regulations under section 1 before the Scottish Parliament—</p>
</intro>
<level class="para1" eId="section-2-1-a">
<num>(a)</num>
<content>
<p>lay a copy of the proposed draft regulations before the Scottish Parliament for a period of 60 days,</p>
</content>
</level>
<level class="para1" eId="section-2-1-b">
<num>(b)</num>
<content>
<p>have regard to any representations about the proposed draft regulations that are made to them.</p>
</content>
</level>
</subsection>
<subsection eId="section-2-2">
<num>(2)</num>
<intro>
<p>When laying a draft of a Scottish statutory instrument containing the first regulations under section 1, the Scottish Ministers must also lay before the Scottish Parliament a statement setting out—</p>
</intro>
<level class="para1" eId="section-2-2-a">
<num>(a)</num>
<content>
<p>details of any representations mentioned in subsection (1)(b),</p>
</content>
</level>
<level class="para1" eId="section-2-2-b">
<num>(b)</num>
<content>
<p>the changes (if any) they have made to the regulations in response to such representations and their reasons for making them.</p>
</content>
</level>
</subsection>
<subsection eId="section-2-3">
<num>(3)</num>
<content>
<p>In calculating any period of 60 days for the purposes of subsection (1), no account is to be taken of any time during which the Parliament is dissolved or is in recess for more than 4 days.</p>
</content>
</subsection>
</section>
<section eId="section-3">
<num>3</num>
<heading>Review of mental health moratorium</heading>
<subsection eId="section-3-1">
<num>(1)</num>
<intro>
<p>The Scottish Ministers must, as soon as reasonably practicable after the end of the review period—</p>
</intro>
<level class="para1" eId="section-3-1-a">
<num>(a)</num>
<content>
<p>undertake a review of the operation of the mental health moratorium established under section 1,</p>
</content>
</level>
<level class="para1" eId="section-3-1-b">
<num>(b)</num>
<content>
<p>prepare a report on that review.</p>
</content>
</level>
</subsection>
<subsection eId="section-3-2">
<num>(2)</num>
<intro>
<p>The Scottish Ministers must, as soon as reasonably practicable after preparing the report—</p>
</intro>
<level class="para1" eId="section-3-2-a">
<num>(a)</num>
<content>
<p>publish the report, and</p>
</content>
</level>
<level class="para1" eId="section-3-2-b">
<num>(b)</num>
<content>
<p>lay the report before the Scottish Parliament.</p>
</content>
</level>
</subsection>
<subsection eId="section-3-3">
<num>(3)</num>
<content>
<p>For the purposes of this section, “the review period” is the period of 5 years beginning with the day on which the first regulations under section 1 come into force.</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-modification-of-the-bankruptcy-scotland-act-2016">
<heading>Modification of the Bankruptcy (Scotland) Act 2016</heading>
<section eId="section-4">
<num>4</num>
<heading>Process for applying for recall of an award of sequestration</heading>
<subsection eId="section-4-1">
<num>(1)</num>
<content>
<p>Part 2 of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-4-2">
<num>(2)</num>
<intro>
<p>In section 29 (petitions for recall of sequestration), in subsection (4)—</p>
</intro>
<level class="para1" eId="section-4-2-a">
<num>(a)</num>
<content>
<p>
<mod>
in paragraph (a), after “debtor” insert
<quotedText>“(where the debtor is not the petitioner)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-2-b">
<num>(b)</num>
<content>
<p>
<mod>
in paragraph (b), after “any” insert
<quotedText>“other”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-2-c">
<num>(c)</num>
<content>
<p>
<mod>
in paragraph (c), after “trustee” insert
<quotedText>“(where the trustee is not the petitioner)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-2-d">
<num>(d)</num>
<content>
<p>
<mod>
in paragraph (d), after “AiB” insert
<quotedText>“(where AiB is not the petitioner)”</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-4-3">
<num>(3)</num>
<intro>
<p>In section 31 (application to Accountant in Bankruptcy for recall of sequestration)—</p>
</intro>
<level class="para1" eId="section-4-3-a">
<num>(a)</num>
<content>
<p>
<mod>
in subsection (3), in the opening words, before “persons” insert
<quotedText>“other”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-3-b">
<num>(b)</num>
<intro>
<p>in subsection (4)—</p>
</intro>
<level class="para2" eId="section-4-3-b-i">
<num>(i)</num>
<content>
<p>in paragraph (a), the words “(where the debtor is not the applicant)” are repealed,</p>
</content>
</level>
<level class="para2" eId="section-4-3-b-ii">
<num>(ii)</num>
<content>
<p>
<mod>
in paragraph (c), after “trustee” insert
<quotedText>“(where AiB is not the trustee)”</quotedText>
,
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="section-4-3-c">
<num>(c)</num>
<intro>
<p>in subsection (5)—</p>
</intro>
<level class="para2" eId="section-4-3-c-i">
<num>(i)</num>
<content>
<p>
<mod>
after “granted” insert
<quotedText startQuote=""></quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(a)</num>
<content>
<p>where AiB is not the trustee,</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-4-3-c-ii">
<num>(ii)</num>
<content>
<p>
<mod>
at the end insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<level class="para1">
<num>(b)</num>
<content>
<p>
where AiB is the trustee, under section 35(6) (subject to any conditions imposed under section 35
<ref href="#d25e673">(6B)</ref>
).
</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</level>
</subsection>
<subsection eId="section-4-4">
<num>(4)</num>
<intro>
<p>In section 32 (application under section 31: further procedure)—</p>
</intro>
<level class="para1" eId="section-4-4-a">
<num>(a)</num>
<content>
<p>
<mod>
for subsection (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(1)</num>
<intro>
<p>This section applies where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>an application is made under section 31, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>AiB is not the trustee.</p>
</content>
</level>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-4-b">
<num>(b)</num>
<content>
<p>
<mod>
the heading of the section becomes
<quotedText>
<b>Application under section 31: further procedure where Accountant in Bankruptcy is not trustee</b>
</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-4-5">
<num>(5)</num>
<intro>
<p>In section 33 (determination where amount of outlays and remuneration not agreed), in subsection (1)—</p>
</intro>
<level class="para1" eId="section-4-5-a">
<num>(a)</num>
<content>
<p>the word “and” immediately following paragraph (a) is repealed,</p>
</content>
</level>
<level class="para1" eId="section-4-5-b">
<num>(b)</num>
<content>
<p>
<mod>
after paragraph (a), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<level class="para1">
<num>(aa)</num>
<content>
<p>AiB is not the trustee, and</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-4-6">
<num>(6)</num>
<intro>
<p>In section 34 (recall of sequestration by Accountant in Bankruptcy)—</p>
</intro>
<level class="para1" eId="section-4-6-a">
<num>(a)</num>
<content>
<p>
<mod>
before subsection (1), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>A1</num>
<content>
<p>This section applies where AiB is not the trustee.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-6-b">
<num>(b)</num>
<content>
<p>
<mod>
after subsection (1), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(1A)</num>
<content>
<p>Before recalling an award of sequestration AiB must take into account any representations made by an interested person within 21 days beginning with the day on which notice is given under section 31(3)(b).</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-6-c">
<num>(c)</num>
<content>
<p>
<mod>
in subsection (2)(a), for “8 weeks” substitute
<quotedText>“9 weeks”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-6-d">
<num>(d)</num>
<content>
<p>
<mod>
the title to the section becomes
<quotedText>
<b>Recall of sequestration where Accountant in Bankruptcy is not trustee</b>
</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-4-7">
<num>(7)</num>
<intro>
<p>In section 35 (recall where Accountant in Bankruptcy trustee)—</p>
</intro>
<level class="para1" eId="section-4-7-a">
<num>(a)</num>
<intro>
<p>in subsection (1)(b)—</p>
</intro>
<level class="para2" eId="section-4-7-a-i">
<num>(i)</num>
<content>
<p>
<mod>
before “considers” insert
<quotedText startQuote="">either—</quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para2">
<num>(i)</num>
<content>
<p>receives an application under section 31, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p/>
</content>
</level>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-4-7-a-ii">
<num>(ii)</num>
<content>
<p>
<mod>
for “should” substitute
<quotedText>“may”</quotedText>
,
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="section-4-7-b">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (2), after “must” insert
<quotedText startQuote=""></quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(a)</num>
<content>
<p>where an application under section 31 is received, notify every creditor known to AiB that the application has been made within 7 days beginning with the day on which the application is received,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>where AiB is acting on its own accord,</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-7-c">
<num>(c)</num>
<content>
<p>
<mod>
after subsection (2), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(2A)</num>
<content>
<p>At the same time as giving notice under subsection (2)(b), AiB must give to the persons mentioned in subsection (2B) a notice informing the recipient that the person has a right to make representations to AiB in relation to the notification within 21 days beginning with the day on which the notice is given.</p>
</content>
</subsection>
<subsection>
<num>(2B)</num>
<intro>
<p>The persons are—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>the debtor, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>any person who was a petitioner for, or concurred in a debtor application for, the sequestration.</p>
</content>
</level>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-7-d">
<num>(d)</num>
<content>
<p>
<mod>
in subsection (5)(a), for “subsection (2)” substitute
<quotedText>“subsection (2A) or, as the case may be, section 31(3)(b)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-7-e">
<num>(e)</num>
<content>
<p>
<mod>
after subsection (6), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(6A)</num>
<intro>
<p>AiB may not recall an award of sequestration after—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>where no appeal is made under section 37(5)(a), the day which is 9 weeks after the days mentioned in subsection (5)(a) have expired, or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>where such an appeal is made, such later day which is 14 days after the day on which the appeal is finally determined or abandoned.</p>
</content>
</level>
</subsection>
<subsection eId="d25e673">
<num>(6B)</num>
<content>
<p>If AiB does not under subsection (6) recall an award of sequestration, the sequestration must continue but is to be subject to such conditions as AiB thinks fit.</p>
</content>
</subsection>
<subsection>
<num>(6C)</num>
<content>
<p>Despite notice being given under subsection (2)(b), the proceedings in the sequestration are to continue as if the notification had not been made until a recall of an award of sequestration is granted under subsection (6) (subject to any conditions imposed under subsection (6B)).</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-4-7-f">
<num>(f)</num>
<content>
<p>
<mod>
the heading of the section becomes
<quotedText>
<b>Recall of sequestration where Accountant in Bankruptcy is trustee</b>
</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
</section>
<section eId="section-5">
<num>5</num>
<heading>Recall of sequestration: payment of interest</heading>
<subsection eId="section-5-1">
<num>(1)</num>
<content>
<p>Part 2 of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-5-2">
<num>(2)</num>
<intro>
<p>In section 30 (recall of sequestration by sheriff)—</p>
</intro>
<level class="para1" eId="section-5-2-a">
<num>(a)</num>
<content>
<p>
<mod>
in subsection (2), in paragraph (a), after “full” insert
<quotedText>“(including the payment of any interest payable on the debtor’s debts and the payment of the outlays and remuneration of the interim trustee and of the trustee)”</quotedText>
, and
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-5-2-b">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (4), in paragraph (a), after “full of” insert
<quotedText startQuote=""></quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para2">
<num>(i)</num>
<content>
<p>any interest payable on the debtor’s debts (see section 37A), and</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p/>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-5-3">
<num>(3)</num>
<intro>
<p>In section 32(4) (application under section 31: further procedure)—</p>
</intro>
<level class="para1" eId="section-5-3-a">
<num>(a)</num>
<content>
<p>
<mod>
in paragraph (b), for “(including” to the end of that paragraph substitute
<quotedText startQuote="">, including the payment in full of—</quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para2">
<num>(i)</num>
<content>
<p>any interest payable on the debtor’s debts (see section 37A),</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the outlays and remuneration of the interim trustee and of the trustee,</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-5-3-b">
<num>(b)</num>
<content>
<p>
<mod>
in paragraph (c)(ii), after “payment of” insert
<quotedText>“any interest payable on the debtor’s debts and payment of”</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-5-4">
<num>(4)</num>
<content>
<p>
<mod>
In section 34(1) (recall of sequestration by Accountant in Bankruptcy), in paragraph (a), for “(including the outlays and remuneration of the interim trustee and the trustee)” substitute
<quotedText startQuote="">, including the payment in full of—</quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para2">
<num>(i)</num>
<content>
<p>any interest payable on the debtor’s debts (see section 37A),</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the outlays and remuneration of the interim trustee and of the trustee,</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
<subsection eId="section-5-5">
<num>(5)</num>
<intro>
<p>In section 35 (recall where Accountant in Bankruptcy trustee)—</p>
</intro>
<level class="para1" eId="section-5-5-a">
<num>(a)</num>
<content>
<p>
<mod>
in subsection (1), in paragraph (b), after “including” insert
<quotedText>“the payment of any interest payable on the debtor’s debts and the payment of”</quotedText>
, and
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-5-5-b">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (6), in paragraph (a), for “(including” to the end of that paragraph substitute
<quotedText startQuote="">, including the payment in full of—</quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para2">
<num>(i)</num>
<content>
<p>any interest payable on the debtor’s debts (see section 37A),</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the outlays and remuneration of the interim trustee and of the trustee,</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-5-6">
<num>(6)</num>
<content>
<p>
<mod>
After section 37, insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<section>
<num>37A</num>
<heading>Interest</heading>
<subsection>
<num>(1)</num>
<content>
<p>This section applies for the purpose of determining the amount of interest payable on the debtor’s debts in relation to a recall of an award of sequestration.</p>
</content>
</subsection>
<subsection>
<num>(2)</num>
<content>
<p>Interest, between the date of sequestration and the date of payment of the debt, is payable at the rate specified in section 129(10), unless subsection (3) applies.</p>
</content>
</subsection>
<subsection>
<num>(3)</num>
<content>
<p>This subsection applies if the whole of the debt is paid in full within 6 months after the date of the award of sequestration, in which case interest is not payable on the debt.</p>
</content>
</subsection>
<subsection>
<num>(4)</num>
<content>
<p>For the avoidance of doubt, if only part of the debt is paid within 6 months after the date of the award of sequestration, interest is payable on the whole of the debt (including any part of the debt already paid since the award) in accordance with subsection (2).</p>
</content>
</subsection>
</section>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
</section>
<section eId="section-6">
<num>6</num>
<heading>When sequestration is awarded: minimal asset process</heading>
<subsection eId="section-6-1">
<num>(1)</num>
<content>
<p>Section 22 (when sequestration is awarded) of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-6-2">
<num>(2)</num>
<content>
<p>
<mod>
In subsection (1)(b), for “2(8)” substitute
<quotedText>“2(2) or (8)”</quotedText>
.
</mod>
</p>
</content>
</subsection>
</section>
<section eId="section-7">
<num>7</num>
<heading>Petition for sequestration: citation of debtor</heading>
<subsection eId="section-7-1">
<num>(1)</num>
<content>
<p>Section 22 (when sequestration is awarded) of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-7-2">
<num>(2)</num>
<content>
<p>
<mod>
For subsection (4) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(4)</num>
<content>
<p>The debtor must be cited no fewer than 6 days before the date specified under subsection (3).</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
</section>
<section eId="section-8">
<num>8</num>
<heading>Gratuitous alienations: right acquired in good faith and for value</heading>
<subsection eId="section-8-1">
<num>(1)</num>
<content>
<p>Section 98 (gratuitous alienations) of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-8-2">
<num>(2)</num>
<content>
<p>
<mod>
In subsection (7), for “(6)” substitute
<quotedText>“(5)”</quotedText>
.
</mod>
</p>
</content>
</subsection>
</section>
<section eId="section-9">
<num>9</num>
<heading>Time periods for appeals against decisions by AiB</heading>
<subsection eId="section-9-1">
<num>(1)</num>
<content>
<p>The Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-9-2">
<num>(2)</num>
<intro>
<p>In section 69 (resignation or death of trustee)—</p>
</intro>
<level class="para1" eId="section-9-2-a">
<num>(a)</num>
<content>
<p>
<mod>
in subsection (9), for “subsection (11)” substitute
<quotedText>“subsections (11) and (12)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-9-2-b">
<num>(b)</num>
<content>
<p>
<mod>
for subsection (12) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(12)</num>
<content>
<p>T or T's representatives, NT, the debtor or any creditor may, within 14 days beginning with the date of any decision of AiB in an appeal under subsection (11)(a), appeal to the sheriff against that decision.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-9-3">
<num>(3)</num>
<intro>
<p>In section 134 (appeal against determination as to outlays and remuneration payable to trustee)—</p>
</intro>
<level class="para1" eId="section-9-3-a">
<num>(a)</num>
<content>
<p>
<mod>
for subsection (3) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(3)</num>
<content>
<p>The trustee, the debtor or any creditor may, within 14 days beginning with the date of any decision of AiB in an appeal under subsection (1)(a), appeal to the sheriff against that decision.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-9-3-b">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (4), after “(1)” insert
<quotedText>“or (3)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-9-3-c">
<num>(c)</num>
<content>
<p>
<mod>
after subsection (5), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(6)</num>
<content>
<p>The decision of the sheriff on an appeal under subsection (1)(b) or (3) is final.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
</section>
<section eId="section-10">
<num>10</num>
<heading>Protected trust deeds: information and time to be provided to debtor</heading>
<subsection eId="section-10-1">
<num>(1)</num>
<content>
<p>Part 14 of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-10-2">
<num>(2)</num>
<intro>
<p>In section 167 (statements in and advice regarding trust deed)—</p>
</intro>
<level class="para1" eId="section-10-2-a">
<num>(a)</num>
<content>
<p>
<mod>
in subsection (3), for paragraph (b) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<level class="para1">
<num>(b)</num>
<intro>
<p>the trustee must provide the debtor with—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>a copy of a debt advice and information package, and</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>a copy of a trust deed information document,</p>
</content>
</level>
</level>
<level class="para1">
<num>(ba)</num>
<content>
<p>the trustee must give the debtor adequate time to consider the advice and material provided under paragraphs (a) and (b),</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-10-2-b">
<num>(b)</num>
<content>
<p>
<mod>
after subsection (3), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(4)</num>
<content>
<p>
For the purposes of subsection (3) a “
<term refersTo="#term-trust-deed-information-document">trust deed information document</term>
” means a document containing such information (including information regarding the consequences of granting a trust deed), and in such form, as the Scottish Ministers may determine.
</p>
</content>
</subsection>
<subsection>
<num>(5)</num>
<content>
<p>The trustee must have regard to any guidance issued by the Scottish Ministers about giving debtors adequate time to consider the advice and material provided under paragraphs (a) and (b) of subsection (3).</p>
</content>
</subsection>
<subsection>
<num>(6)</num>
<content>
<p>The Scottish Ministers must publish any guidance issued under subsection (5).</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
</section>
<section eId="section-11">
<num>11</num>
<heading>Debtor not traced: former trustee’s outlays and remuneration</heading>
<subsection eId="section-11-1">
<num>(1)</num>
<content>
<p>Section 142 (debtor not traced: new trustee) of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-11-2">
<num>(2)</num>
<content>
<p>
<mod>
In subsection (6)(c), after “133” insert
<quotedText>“(there being no effect on any outlays and remuneration paid to the former trustee before the issue of the notice)”</quotedText>
.
</mod>
</p>
</content>
</subsection>
</section>
<section eId="section-12">
<num>12</num>
<heading>Failure of debtor to co-operate with trustee in sequestration</heading>
<subsection eId="section-12-1">
<num>(1)</num>
<content>
<p>The Bankruptcy (Scotland) Act 2016 is modified by subsections (2) and (3).</p>
</content>
</subsection>
<subsection eId="section-12-2">
<num>(2)</num>
<content>
<p>
<mod>
After section 147, insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<hcontainer name="crossheading" ukl:Name="Pblock">
<heading>Failure of debtor to co-operate with trustee</heading>
<section eId="d25e1186">
<num>147A</num>
<heading>Debtor fails to co-operate: Accountant in Bankruptcy appointment as new trustee</heading>
<subsection eId="d25e1190">
<num>(1)</num>
<intro>
<p>This section applies where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>AiB is not the trustee in the sequestration,</p>
</content>
</level>
<level class="para1" eId="d25e1202">
<num>(b)</num>
<content>
<p>the period of 5 years beginning with the date of sequestration of a debtor’s estate has expired, and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the debtor has not been discharged from that sequestration.</p>
</content>
</level>
</subsection>
<subsection eId="d25e1214">
<num>(2)</num>
<content>
<p>The trustee in the sequestration may apply to AiB for authority to resign office on account of the debtor’s failure to co-operate.</p>
</content>
</subsection>
<subsection>
<num>(3)</num>
<intro>
<p>
An application under
<ref href="#d25e1214">subsection (2)</ref>
must be made in the prescribed form and include information about—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>the nature and the extent of the debtor’s failure to co-operate with the trustee,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the actions taken by the trustee to secure the debtor’s co-operation,</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>any other matters that the trustee considers relevant, and</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>details of every creditor known to the trustee.</p>
</content>
</level>
</subsection>
<subsection>
<num>(4)</num>
<intro>
<p>
Before making an application under
<ref href="#d25e1214">subsection (2)</ref>
, the trustee must—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>notify the debtor by sending an intention to resign notice, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>give an intention to resign notice to every creditor known to the trustee.</p>
</content>
</level>
</subsection>
<subsection>
<num>(5)</num>
<intro>
<p>An intention to resign notice must—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>be in the prescribed form, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>include a statement informing the recipient that the recipient has a right to make representations to AiB in relation to the application within 14 days beginning with the day on which the application is made.</p>
</content>
</level>
</subsection>
<subsection eId="d25e1292">
<num>(6)</num>
<intro>
<p>
After receiving an application under
<ref href="#d25e1214">subsection (2)</ref>
, AiB must—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>take into account any representations made by an interested person within 14 days beginning with the day on which the application is made, and</p>
</content>
</level>
<level class="para1" eId="d25e1307">
<num>(b)</num>
<content>
<p>
if satisfied of the matters mentioned in
<ref href="#d25e1316">subsection (7)</ref>
, issue to the trustee who made the application a notice in the prescribed form granting the application.
</p>
</content>
</level>
</subsection>
<subsection eId="d25e1316">
<num>(7)</num>
<intro>
<p>The matters are—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>that the debtor has failed to co-operate with the trustee to such an extent that the trustee is prevented from carrying out the trustee's functions under this Act,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>that the failure is likely to continue, and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>that the trustee has taken all reasonable steps to secure the debtor’s co-operation.</p>
</content>
</level>
</subsection>
<subsection>
<num>(8)</num>
<intro>
<p>AiB—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>
may request such further information from the trustee as AiB considers necessary to make a decision under
<ref href="#d25e1292">subsection (6)</ref>
, and
</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>
must notify the trustee, the debtor and every creditor known to AiB of its decision under
<ref href="#d25e1292">subsection (6)</ref>
.
</p>
</content>
</level>
</subsection>
<subsection eId="d25e1364">
<num>(9)</num>
<intro>
<p>
Where a notice is issued under
<ref href="#d25e1292">subsection (6)</ref>
<ref href="#d25e1307">(b)</ref>
, 14 days after the notice is given—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>AiB is deemed to be the trustee,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>AiB must notify the debtor and every creditor known to AiB that AiB is deemed to be the trustee,</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>AiB must make an appropriate entry in the register of insolvencies,</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>the former trustee is not entitled to recover, other than by a claim in the final distribution of the debtor’s estate, outlays and remuneration payable under sections 132 and 133 (there being no effect on any outlays and remuneration paid to the former trustee before the issue of the notice),</p>
</content>
</level>
<level class="para1">
<num>(e)</num>
<content>
<p>subsections (9) to (13) of section 69 apply in relation to the appointment of AiB as the new trustee as they apply in relation to the appointment of a new trustee under that section,</p>
</content>
</level>
<level class="para1">
<num>(f)</num>
<content>
<p>
<mod>
section 116 applies as if there were substituted for subsection (2)—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(2)</num>
<content>
<p>AiB may at any time before the discharge of the debtor require the debtor to give an account in writing, in such form as may be prescribed, of the debtor’s current state of affairs.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1">
<num>(g)</num>
<content>
<p>
section 138 applies to the sequestration with the modifications in
<ref href="#d25e1429">subsection (10)</ref>
.
</p>
</content>
</level>
</subsection>
<subsection eId="d25e1429">
<num>(10)</num>
<intro>
<p>The modifications are—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>in subsection (2), the words “after the date which is 12 months after the date on which sequestration is awarded” are omitted,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (3), for “must, as soon as practicable after the date which is 12 months after the date on which sequestration is awarded” substitute
<quotedText>“may, if the debtor co-operates with AiB to such an extent that AiB is able to carry out the trustee’s functions under this Act”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>
<mod>
in subsection (6), for “must, as soon as practicable after the date which is 12 months after the date of the refusal” substitute
<quotedText>“may, at any time after a refusal, if the debtor co-operates with AiB to such an extent that AiB is able to carry out the trustee's functions under this Act”</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
</section>
<section eId="d25e1462">
<num>147B</num>
<heading>Accountant in Bankruptcy appointment as new trustee: review and appeal</heading>
<subsection eId="d25e1466">
<num>(1)</num>
<content>
<p>
The trustee may apply to AiB for a review of a decision under
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1292">(6)</ref>
to refuse an application.
</p>
</content>
</subsection>
<subsection eId="d25e1477">
<num>(2)</num>
<content>
<p>
The debtor or any creditor may apply to AiB for a review of a decision under
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1292">(6)</ref>
to grant an application.
</p>
</content>
</subsection>
<subsection>
<num>(3)</num>
<content>
<p>
Any application under subsection
<ref href="#d25e1466">(1)</ref>
or
<ref href="#d25e1477">(2)</ref>
must be made within 14 days beginning with the day of notification of the decision in question.
</p>
</content>
</subsection>
<subsection>
<num>(4)</num>
<content>
<p>
If an application for review under
<ref href="#d25e1477">subsection (2)</ref>
is made, the grant of the application is suspended until the determination of that review by AiB.
</p>
</content>
</subsection>
<subsection eId="d25e1509">
<num>(5)</num>
<intro>
<p>
If an application for a review under subsection
<ref href="#d25e1466">(1)</ref>
or
<ref href="#d25e1477">(2)</ref>
is made, AiB must—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>take into account any representations made by an interested person within 21 days beginning with the day on which the application is made, and</p>
</content>
</level>
<level class="para1" eId="d25e1527">
<num>(b)</num>
<content>
<p>confirm or revoke the decision within 28 days beginning with the day on which the application is made.</p>
</content>
</level>
</subsection>
<subsection eId="d25e1533">
<num>(6)</num>
<intro>
<p>
If, under
<ref href="#d25e1509">subsection (5)</ref>
<ref href="#d25e1527">(b)</ref>
, AiB—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>
revoke a decision to grant an application, AiB must revoke the notice given under
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1292">(6)</ref>
<ref href="#d25e1307">(b)</ref>
granting the application,
</p>
</content>
</level>
<level class="para1" eId="d25e1557">
<num>(b)</num>
<content>
<p>
revoke a decision to refuse an application, AiB must issue a notice under
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1292">(6)</ref>
<ref href="#d25e1307">(b)</ref>
granting the application, or
</p>
</content>
</level>
<level class="para1" eId="d25e1570">
<num>(c)</num>
<content>
<p>
<mod>
confirm a decision to grant an application,
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1364">(9)</ref>
applies as if for the words “14 days after the notice is given” there were substituted
<quotedText>
“14 days after the AiB decision under
<ref href="#d25e1462">section 147B</ref>
<ref href="#d25e1509">(5)</ref>
<ref href="#d25e1527">(b)</ref>
</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="d25e1591">
<num>(7)</num>
<content>
<p>
The debtor, the trustee or any creditor may appeal to the sheriff against any decision of AiB under
<ref href="#d25e1509">subsection (5)</ref>
<ref href="#d25e1527">(b)</ref>
within 14 days beginning with the day of the decision.
</p>
</content>
</subsection>
<subsection>
<num>(8)</num>
<content>
<p>
If an appeal relating to a decision mentioned in
<ref href="#d25e1533">subsection (6)</ref>
<ref href="#d25e1557">(b)</ref>
or
<ref href="#d25e1570">(c)</ref>
is made, the grant of the application is suspended until the determination of that appeal.
</p>
</content>
</subsection>
<subsection>
<num>(9)</num>
<intro>
<p>
If, on an appeal under
<ref href="#d25e1591">subsection (7)</ref>
, the sheriff determines that an application which has been refused should be granted—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>
the sheriff must order AiB to issue a notice under
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1292">(6)</ref>
<ref href="#d25e1307">(b)</ref>
granting the application, and
</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1364">(9)</ref>
applies as if the words “14 days after the notice is given” were omitted.
</p>
</content>
</level>
</subsection>
<subsection>
<num>(10)</num>
<content>
<p>
If, on an appeal under
<ref href="#d25e1591">subsection (7)</ref>
, the sheriff determines that an application which has been granted should be refused, the sheriff must order AiB to revoke the notice given under
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1292">(6)</ref>
<ref href="#d25e1307">(b)</ref>
granting the application.
</p>
</content>
</subsection>
<subsection>
<num>(11)</num>
<content>
<p>The sheriff clerk must send AiB a copy of the sheriff’s decree.</p>
</content>
</subsection>
<subsection>
<num>(12)</num>
<content>
<p>
The decision of the sheriff on an appeal under
<ref href="#d25e1591">subsection (7)</ref>
is final.
</p>
</content>
</subsection>
</section>
<section eId="d25e1683">
<num>147C</num>
<heading>Debtor fails to co-operate with AiB as trustee</heading>
<subsection eId="d25e1687">
<num>(1)</num>
<intro>
<p>This section applies where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>
AiB is the trustee but was not appointed as trustee under
<ref href="#d25e1186">section 147A</ref>
,
</p>
</content>
</level>
<level class="para1" eId="d25e1702">
<num>(b)</num>
<content>
<p>the period of 5 years beginning with the date of sequestration a debtor’s estate has expired, and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the debtor has not been discharged from that sequestration.</p>
</content>
</level>
</subsection>
<subsection eId="d25e1714">
<num>(2)</num>
<content>
<p>
AiB, if satisfied of the matters mentioned in
<ref href="#d25e1723">subsection (3)</ref>
, may make a determination that the debtor has failed to co-operate.
</p>
</content>
</subsection>
<subsection eId="d25e1723">
<num>(3)</num>
<intro>
<p>The matters are—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>that the debtor has failed to co-operate with AiB as trustee to such an extent that AiB is prevented from carrying out the AiB’s functions as trustee under this Act,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>that the failure is likely to continue, and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>that AiB has taken all reasonable steps to secure the debtor’s co-operation.</p>
</content>
</level>
</subsection>
<subsection>
<num>(4)</num>
<intro>
<p>
If AiB makes a determination under
<ref href="#d25e1714">subsection (2)</ref>
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>
AiB must notify the debtor and every creditor known to AiB that AiB has made a determination under
<ref href="#d25e1714">subsection (2)</ref>
, and
</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>
<mod>
section 116 applies as if there were substituted for subsection (2)—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(2)</num>
<content>
<p>AiB may at any time before the discharge of the debtor require the debtor to give an account in writing, in such form as may be prescribed, of the debtor’s current state of affairs.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>section 138(6) applies as if for the words “must, as soon as practicable after the date which is 12 months after the date of the refusal” there were substituted “may, at any time after a refusal, if the debtor co-operates with AiB to such an extent that AiB is able to carry out the trustee's functions under this Act.</p>
</content>
</level>
</subsection>
</section>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
<subsection eId="section-12-3">
<num>(3)</num>
<content>
<p>
<mod>
In section 214 of the Bankruptcy (Scotland) Act 2016, after paragraph (2)(q) insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<level class="para1">
<num>(qa)</num>
<content>
<p>section 147B(5),</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
<subsection eId="section-12-4">
<num>(4)</num>
<content>
<p>
In calculating a period of 5 years for the purposes of
<ref href="#d25e1186">section 147A</ref>
<ref href="#d25e1190">(1)</ref>
<ref href="#d25e1202">(b)</ref>
or
<ref href="#d25e1683">section 147C</ref>
<ref href="#d25e1687">(1)</ref>
<ref href="#d25e1702">(b)</ref>
of the Bankruptcy (Scotland) Act 2016, any part of that period which is before the commencement of subsection (1) may be included.
</p>
</content>
</subsection>
</section>
<section eId="section-13">
<num>13</num>
<heading>Commissioners: disqualification from office where AiB is trustee</heading>
<subsection eId="section-13-1">
<num>(1)</num>
<content>
<p>Part 4 of the Bankruptcy (Scotland) Act 2016 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-13-2">
<num>(2)</num>
<content>
<p>
<mod>
In section 76 (commissioners), in the opening words, after “sequestration” insert
<quotedText>“where AiB is not the trustee”</quotedText>
.
</mod>
</p>
</content>
</subsection>
<subsection eId="section-13-3">
<num>(3)</num>
<content>
<p>
<mod>
In section 77 (election, resignation and removal of commissioners), after subsection (6), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(6A)</num>
<content>
<p>A commissioner ceases to hold office if AiB is, or becomes, the trustee.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-arrestment-and-action-of-furthcoming">
<heading>Arrestment and action of furthcoming</heading>
<section eId="section-14">
<num>14</num>
<heading>Service of documents and arrestee’s duty of disclosure</heading>
<subsection eId="section-14-1">
<num>(1)</num>
<content>
<p>Part 3A of the Debtors (Scotland) Act 1987 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-14-2">
<num>(2)</num>
<content>
<p>
<mod>
After section 73C, insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<section>
<num>73CA</num>
<heading>Service of documents for purposes of sections 73B and 73C</heading>
<subsection>
<num>(1)</num>
<intro>
<p>In relation to the service of documents for the purposes of sections 73B and 73C, the documents must be served on the arrestee either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>by being sent to the proper address of the arrestee—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>by a registered post service (as defined in section 125(1) of the Postal Services Act 2000), or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>by a postal service which provides for the delivery of the document to be recorded, or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>by being transmitted to the arrestee electronically.</p>
</content>
</level>
</subsection>
<subsection>
<num>(2)</num>
<content>
<p>But, despite subsection (1), if it is impossible or impracticable for the documents to be served on the arrestee in either of the ways described in that subsection, service of the documents may instead be effected by any other competent mode of service.</p>
</content>
</subsection>
<subsection>
<num>(3)</num>
<intro>
<p>For the purpose of subsection (1)(a), the proper address of the arrestee is—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>in the case of a body corporate, the address of the registered or principal office of the body,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>in the case of a partnership, the address of the principal office of the partnership,</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>in any other case, the last known address of the arrestee.</p>
</content>
</level>
</subsection>
<subsection>
<num>(4)</num>
<content>
<p>Where a document is served as mentioned in subsection (1)(a) on an address in the United Kingdom it is to be taken to have been received 48 hours after it is sent unless the contrary is shown.</p>
</content>
</subsection>
<subsection>
<num>(5)</num>
<intro>
<p>For the purpose of subsection (1)(b)—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>electronic transmission of a document must be effected in a way that the arrestee has indicated to the creditor or officer of court that the arrestee is willing to receive the document,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>the arrestee’s indication of willingness to receive a document in a particular way may be—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>specific to the document in question or generally applicable to documents of that kind,</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>expressed specifically to the creditor or officer of court or generally (for example on a website),</p>
</content>
</level>
<level class="para2">
<num>(iii)</num>
<content>
<p>inferred from the arrestee having previously been willing to receive documents from the creditor or officer of court in that way and not having indicated unwillingness to do so again,</p>
</content>
</level>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the creditor or officer of court’s uploading of a document to an electronic storage system from which the arrestee is able to download the document may constitute electronic transmission of the document, where the arrestee is sent a notification that the document has been uploaded in that way,</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>a notice transmitted electronically is taken to have been received on the day of transmission unless the contrary is shown.</p>
</content>
</level>
</subsection>
</section>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
<subsection eId="section-14-3">
<num>(3)</num>
<intro>
<p>In section 73G(4) (arrestee’s duty of disclosure)—</p>
</intro>
<level class="para1" eId="section-14-3-a">
<num>(a)</num>
<content>
<p>in paragraph (a), the word “and” after sub-paragraph (ii) is repealed,</p>
</content>
</level>
<level class="para1" eId="section-14-3-b">
<num>(b)</num>
<content>
<p>
<mod>
after paragraph (b), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<level class="para1">
<num>(c)</num>
<content>
<p>where no property is attached, the reason why (for example, the arrestee does not hold funds standing to the credit of the debtor, or does hold such funds but the sum held is less than sum mentioned in section 73F(3)(a)).</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-14-4">
<num>(4)</num>
<intro>
<p>In section 73H (failure to disclose information)—</p>
</intro>
<level class="para1" eId="section-14-4-a">
<num>(a)</num>
<content>
<p>
<mod>
in subsection (1)(b), for “mentioned in section 73F(4) of this Act” substitute
<quotedText>“of £500”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-14-4-b">
<num>(b)</num>
<content>
<p>
<mod>
after subsection (4), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(5)</num>
<content>
<p>The Scottish Ministers may by regulations modify subsection (1)(b) so as to vary the sum mentioned there.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
</section>
<section eId="section-15">
<num>15</num>
<heading>Attachment of property or funds: duty to consult and power to make further provision</heading>
<subsection eId="section-15-1">
<num>(1)</num>
<intro>
<p>The Scottish Ministers must, within 1 year of this section coming into force—</p>
</intro>
<level class="para1" eId="section-15-1-a">
<num>(a)</num>
<intro>
<p>consult such persons as they consider appropriate about the merits of—</p>
</intro>
<level class="para2" eId="section-15-1-a-i">
<num>(i)</num>
<content>
<p>
attaching particular types of funds or other property in pursuance of any provision under Part 3A of the Debtors (Scotland) Act 1987 (“
<term refersTo="#term-the-1987-act" eId="term-the-1987-act">the 1987 Act</term>
”),
</p>
</content>
</level>
<level class="para2" eId="section-15-1-a-ii">
<num>(ii)</num>
<content>
<p>establishing, or modifying, a process for a debtor to apply to a decision-maker for an order requiring an arrestee to release to a debtor funds due to, or other property of, the debtor attached by an arrestment in accordance with that Part,</p>
</content>
</level>
</level>
<level class="para1" eId="section-15-1-b">
<num>(b)</num>
<intro>
<p>after having had regard to the views expressed, prepare a report which—</p>
</intro>
<level class="para2" eId="section-15-1-b-i">
<num>(i)</num>
<content>
<p>summarises the consultation responses received, and</p>
</content>
</level>
<level class="para2" eId="section-15-1-b-ii">
<num>(ii)</num>
<content>
<p>sets out what steps (if any) the Scottish Ministers propose to take as a result of the findings (including, for example, the exercise of their regulation making powers under section 73U of the 1987 Act to modify Part 3A of that Act).</p>
</content>
</level>
</level>
</subsection>
<subsection eId="section-15-2">
<num>(2)</num>
<content>
<p>The Scottish Ministers must, as soon as reasonably practicable after preparing the report, lay the report before the Scottish Parliament.</p>
</content>
</subsection>
<subsection eId="section-15-3">
<num>(3)</num>
<content>
<p>
The Scottish Ministers must comply with the duties in subsections
<ref href="#section-15-1">(1)</ref>
and
<ref href="#section-15-2">(2)</ref>
before laying a draft of a Scottish statutory instrument containing the first regulations under section 73U of the 1987 Act before the Scottish Parliament.
</p>
</content>
</subsection>
<subsection eId="section-15-4">
<num>(4)</num>
<content>
<p>
The Debtors (Scotland) Act 1987 is modified by
<ref href="#section-15-5">subsection (5)</ref>
.
</p>
</content>
</subsection>
<subsection eId="section-15-5">
<num>(5)</num>
<content>
<p>
<mod>
After section 73T, insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<section>
<num>73U</num>
<heading>Power to make provision about attaching particular property or funds</heading>
<subsection eId="d25e2159">
<num>(1)</num>
<intro>
<p>The Scottish Ministers may by regulations modify this Part to make provision—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>about the types of funds or other property that may not be attached by an arrestment,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>establishing, or modifying, a process for a debtor to apply to a person specified in the regulations (a “decision-maker”) for an order requiring an arrestee to release to a debtor funds due to, or other property of, the debtor attached by an arrestment.</p>
</content>
</level>
</subsection>
<subsection>
<num>(2)</num>
<intro>
<p>Regulations under subsection (1) may (among other things)—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>in respect of regulations under paragraph (a) of that subsection, include provision specifying—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>cases or circumstances in which particular funds or property may not be attached by an arrestment,</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>particular types of funds which must be disregarded when calculating the protected minimum sum mentioned in section 73F(3)(a),</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>in respect of regulations under paragraph (b) of that subsection, include provision about—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the manner in which debtors may apply to a decision-maker for an order,</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the information to be provided as part of an application,</p>
</content>
</level>
<level class="para2">
<num>(iii)</num>
<content>
<p>the factors which a decision-maker must have regard to in deciding whether to give an order (for example, that the attachment of particular funds or property is unduly harsh),</p>
</content>
</level>
<level class="para2">
<num>(iv)</num>
<content>
<p>the process for determining if an order should be given (for example, by conferring a discretion on a decision-maker or other person to decide any matter),</p>
</content>
</level>
<level class="para2">
<num>(v)</num>
<content>
<p>how an application for an order may be challenged,</p>
</content>
</level>
<level class="para2">
<num>(vi)</num>
<content>
<p>the effect of an order given by the decision-maker (including the obligations, or restrictions, on a debtor, creditor or arrestee to whom the arrestment concerned), and</p>
</content>
</level>
<level class="para2">
<num>(vii)</num>
<content>
<p>appeals against an order (including providing for the fees payable in relation to such an appeal).</p>
</content>
</level>
</level>
</subsection>
<subsection>
<num>(3)</num>
<intro>
<p>Regulations under subsection (1) may—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>make different provision for different purposes,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>include incidental, supplementary, consequential, transitional, transitory or saving provision.</p>
</content>
</level>
</subsection>
<subsection>
<num>(4)</num>
<content>
<p>
Regulations under
<ref href="#d25e2159">subsection (1)</ref>
are subject to the affirmative procedure (as defined by section 29 of the Interpretation and Legislative Reform (Scotland) Act 2010).
</p>
</content>
</subsection>
</section>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-diligence-against-earnings">
<heading>Diligence against earnings</heading>
<section eId="section-16">
<num>16</num>
<heading>Service of documents and employers’ etc. duty of disclosure</heading>
<subsection eId="section-16-1">
<num>(1)</num>
<content>
<p>Part 3 of the Debtors (Scotland) Act 1987 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-16-2">
<num>(2)</num>
<intro>
<p>In section 70 (execution and intimation of copies)—</p>
</intro>
<level class="para1" eId="section-16-2-a">
<num>(a)</num>
<content>
<p>
<mod>
for subsection (3), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(3)</num>
<intro>
<p>An earnings arrestment schedule or a current maintenance arrestment schedule must be served on an employer either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>by being sent to the proper address of the employer—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>by a registered post service (as defined in section 125(1) of the Postal Services Act 2000), or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>by a postal service which provides for the delivery of the document to be recorded, or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>by being transmitted to the employer electronically.</p>
</content>
</level>
</subsection>
<subsection>
<num>(3A)</num>
<content>
<p>But, despite subsection (3), if it is impossible or impracticable for the documents to be served on the employer in either of the ways described in that subsection, service of the documents may instead be effected by any other competent mode of service.</p>
</content>
</subsection>
<subsection>
<num>(3B)</num>
<intro>
<p>For the purpose of subsection (3)(a), the proper address of the employer is—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>in the case of a body corporate, the address of the registered or principal office of the body,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>in the case of a partnership, the address of the principal office of the partnership,</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>in any other case, the last known address of the employer.</p>
</content>
</level>
</subsection>
<subsection>
<num>(3C)</num>
<content>
<p>Where a document is served as mentioned in subsection (3)(a) on an address in the United Kingdom it is to be taken to have been received 48 hours after it is sent unless the contrary is shown.</p>
</content>
</subsection>
<subsection>
<num>(3D)</num>
<intro>
<p>For the purpose of subsection (3)(b)—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>electronic transmission of a document must be effected in a way that the employer has indicated to the officer of court that the employer is willing to receive the document,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>the employer’s indication of willingness to receive a document in a particular way may be—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>specific to the document in question or generally applicable to documents of that kind,</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>expressed specifically to the officer of court or generally (for example on a website),</p>
</content>
</level>
<level class="para2">
<num>(iii)</num>
<content>
<p>inferred from the employer having previously been willing to receive documents from the officer of court in that way and not having indicated unwillingness to do so again,</p>
</content>
</level>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the officer of court’s uploading of a document to an electronic storage system from which the employer is able to download the document may constitute electronic transmission of the document, where the employer is sent a notification that the document has been uploaded in that way,</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>a notice transmitted electronically is taken to have been received on the day of transmission unless the contrary is shown.</p>
</content>
</level>
</subsection>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-2-b">
<num>(b)</num>
<content>
<p>
<mod>
for subsection (5), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(5)</num>
<content>
<p>Section 12(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 applies to the service of an earnings arrestment schedule, a current maintenance arrestment schedule or a conjoined arrestment order as it applies to the execution of an attachment except where such service is by post or transmitted electronically.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-16-3">
<num>(3)</num>
<intro>
<p>In section 70A (employer’s duty to provide information)—</p>
</intro>
<level class="para1" eId="section-16-3-a">
<num>(a)</num>
<intro>
<p>in subsection (1)—</p>
</intro>
<level class="para2" eId="section-16-3-a-i">
<num>(i)</num>
<content>
<p>
<mod>
for “Where an employer” substitute
<quotedText>“This section applies where a person”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-16-3-a-ii">
<num>(ii)</num>
<content>
<p>the words from “the employer shall” to the end of the subsection are repealed,</p>
</content>
</level>
</level>
<level class="para1" eId="section-16-3-b">
<num>(b)</num>
<content>
<p>
<mod>
for subsection (2) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(1A)</num>
<intro>
<p>If—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>the debtor is not employed by the person who received the schedule or order, or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the debtor is employed by that person but, because of the net earnings of the debtor, the sum to be deducted on any pay-day under this Part of this Act is, or is expected to be, nil,</p>
</content>
</level>
<wrapUp>
<p>the person must, within 21 days of the order or schedule being served, send to the relevant person the information mentioned in paragraph (a) or (b) (as appropriate) in (or as nearly as may be in) such form as may be prescribed.</p>
</wrapUp>
</subsection>
<subsection>
<num>(2)</num>
<intro>
<p>Otherwise, the employer must send to the relevant person the information mentioned in subsection (3) at each of the following times—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>as soon as is reasonably practicable following the order or schedule being served, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>subsequently, provided the debt has not been extinguished, on or as soon as is reasonably practicable after the dates mentioned in subsection (4),</p>
</content>
</level>
<wrapUp>
<p>in (or as nearly as may be in) such form as may be prescribed.</p>
</wrapUp>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-3-c">
<num>(c)</num>
<intro>
<p>in subsection (3)—</p>
</intro>
<level class="para2" eId="section-16-3-c-i">
<num>(i)</num>
<content>
<p>
<mod>
in the opening words, for “(1)” substitute
<quotedText>“(2)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-16-3-c-ii">
<num>(ii)</num>
<content>
<p>
<mod>
in paragraph (b)(i), for “(1)” substitute
<quotedText>“(2)(a)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-16-3-c-iii">
<num>(iii)</num>
<content>
<p>
<mod>
in paragraph (b)(ii), for “(2)” substitute
<quotedText>“(2)(b)”</quotedText>
,
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="section-16-3-d">
<num>(d)</num>
<content>
<p>
<mod>
in subsection (4), for “(2)” substitute
<quotedText>“(2)(b)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-3-e">
<num>(e)</num>
<intro>
<p>in subsection (5)—</p>
</intro>
<level class="para2" eId="section-16-3-e-i">
<num>(i)</num>
<content>
<p>
<mod>
in the opening words, for “subsections (1) and (2)” substitute
<quotedText>“subsection (2)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-16-3-e-ii">
<num>(ii)</num>
<content>
<p>
<mod>
in the opening words, for the words from “give notice” to “the sheriff clerk” substitute
<quotedText>“send to the relevant person notice—”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-16-3-e-iii">
<num>(iii)</num>
<content>
<p>
<mod>
after paragraph (b), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<p>in (or as nearly as may be in) such form as may be prescribed.</p>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="section-16-3-f">
<num>(f)</num>
<content>
<p>
<mod>
after subsection (5), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(5A)</num>
<content>
<p>But subsection (5) does not apply where a notice has been given to the relevant person under subsection (1A)(b).</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-3-g">
<num>(g)</num>
<content>
<p>
<mod>
in subsection (6), for “subsection (1) or (2)” substitute
<quotedText>“subsection (2)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-3-h">
<num>(h)</num>
<content>
<p>
<mod>
after subsection (6), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(7)</num>
<intro>
<p>In this section—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>
<term refersTo="#term-relevant-person">relevant person</term>
” means—
</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the creditor, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>in the case of a conjoined arrestment order, the sheriff clerk,</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>
<term refersTo="#term-prescribed">prescribed</term>
” means prescribed by regulations made by the Scottish Ministers.
</p>
</content>
</level>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-3-i">
<num>(i)</num>
<content>
<p>
<mod>
the heading of the section becomes
<quotedText>
<b>Employers etc.: duty to provide information</b>
</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-16-4">
<num>(4)</num>
<intro>
<p>In section 70B (failure to give notice under section 70A(5))—</p>
</intro>
<level class="para1" eId="section-16-4-a">
<num>(a)</num>
<content>
<p>
<mod>
before subsection (1), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>A1</num>
<intro>
<p>Where a person fails without reasonable excuse to send the information required under section 70A(1A) or (2) of this Act, the sheriff may, on the application of any creditor, make an order requiring the person who received the schedule or order—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>to send the information to the creditor, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>to pay to the creditor—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the sum due to the creditor by the debtor, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the sum of £500,</p>
</content>
</level>
<wrapUp>
<p>whichever is the lesser.</p>
</wrapUp>
</level>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-4-b">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (1)(b), for the words from “an amount” to the end of that paragraph substitute
<quotedText startQuote=""></quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para2">
<num>(i)</num>
<content>
<p>the sum due to the creditor by the debtor, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the sum of £500,</p>
</content>
</level>
<p>whichever is the lesser.</p>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-4-c">
<num>(c)</num>
<content>
<p>
<mod>
in subsection (2), in the opening words, for “subsection (1)(b)” substitute
<quotedText>“subsection (A1)(b) or (1)(b)”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-4-d">
<num>(d)</num>
<intro>
<p>in subsection (3)—</p>
</intro>
<level class="para2" eId="section-16-4-d-i">
<num>(i)</num>
<content>
<p>
<mod>
for “An employer” substitute
<quotedText>“A person”</quotedText>
,
</mod>
</p>
</content>
</level>
<level class="para2" eId="section-16-4-d-ii">
<num>(ii)</num>
<content>
<p>
<mod>
for “subsection (1)” substitute
<quotedText>“subsection (A1)(b) or (1)(b)”</quotedText>
,
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="section-16-4-e">
<num>(e)</num>
<content>
<p>
<mod>
after subsection (3), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(4)</num>
<content>
<p>The Scottish Ministers may by regulations modify subsection (A1)(b)(ii) or (1)(b)(ii) so as to vary the sums mentioned there.</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-16-4-f">
<num>(f)</num>
<content>
<p>
<mod>
the heading of the section becomes
<quotedText>
<b>Failure to give notice under section 70A</b>
</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-diligence-on-the-dependence">
<heading>Diligence on the dependence</heading>
<section eId="section-17">
<num>17</num>
<heading>Provision of debt advice and information package</heading>
<subsection eId="section-17-1">
<num>(1)</num>
<content>
<p>Part 1A of the Debtors (Scotland) Act 1987 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-17-2">
<num>(2)</num>
<intro>
<p>In section 15F (hearing on application)—</p>
</intro>
<level class="para1" eId="section-17-2-a">
<num>(a)</num>
<intro>
<p>in subsection (3)—</p>
</intro>
<level class="para2" eId="section-17-2-a-i">
<num>(i)</num>
<content>
<p>the word “and” immediately following paragraph (b) is repealed,</p>
</content>
</level>
<level class="para2" eId="section-17-2-a-ii">
<num>(ii)</num>
<content>
<p>
<mod>
after paragraph (c), insert
<quotedText startQuote="">; and</quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(d)</num>
<content>
<p>where the debtor is an individual, that the creditor has provided the debtor with a debt advice and information package.</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="section-17-2-b">
<num>(b)</num>
<content>
<p>
<mod>
after subsection (7), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(8)</num>
<content>
<p>
In this section and in section 15K, “
<term refersTo="#term-debt-advice-and-information-package">debt advice and information package</term>
” means the debt advice and information package referred to in section 10(5) of the Debt Arrangement and Attachment (Scotland) Act 2002.
</p>
</content>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</subsection>
<subsection eId="section-17-3">
<num>(3)</num>
<intro>
<p>In section 15K (recall or restriction of diligence on dependence)—</p>
</intro>
<level class="para1" eId="section-17-3-a">
<num>(a)</num>
<content>
<p>
<mod>
after subsection (5), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(5A)</num>
<intro>
<p>Where subsection (5B) applies and the court is satisfied that the creditor has not provided the debtor with a debt advice and information package it—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>must make an order—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>recalling the warrant, and</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>if an arrestment or inhibition has been executed in pursuance of the warrant, recalling that arrestment or inhibition, and</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>may make an order ancillary to any order mentioned in paragraph (a).</p>
</content>
</level>
</subsection>
<subsection>
<num>(5B)</num>
<intro>
<p>This subsection applies where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>the debtor is an individual, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the hearing is a hearing fixed under section 15E(4)(a).</p>
</content>
</level>
</subsection>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="section-17-3-b">
<num>(b)</num>
<content>
<p>
<mod>
in subsection (10), after “(5),” insert
<quotedText>“(5A),”</quotedText>
.
</mod>
</p>
</content>
</level>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-exceptional-attachment">
<heading>Exceptional attachment</heading>
<section eId="section-18">
<num>18</num>
<heading>Notice and redemption periods</heading>
<subsection eId="section-18-1">
<num>(1)</num>
<content>
<p>Part 3 of the Debt Arrangement and Attachment (Scotland) Act 2002 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-18-2">
<num>(2)</num>
<content>
<p>
<mod>
In section 53 (removal of articles attached in dwellinghouse), in subsection (2), at the end insert
<quotedText>“(which is to be not less than 7 days from the date on which the notice is given)”</quotedText>
.
</mod>
</p>
</content>
</subsection>
<subsection eId="section-18-3">
<num>(3)</num>
<content>
<p>
<mod>
In section 56 (redemption), in subsection (1), for the words from “, within 7 days” to the end of that subsection substitute
<quotedText startQuote=""></quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(a)</num>
<content>
<p>where an article was removed immediately by the officer from the dwellinghouse in which it was attached, to redeem that article within 7 days of the date on which it was attached,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>where an article was not removed immediately by the officer from the dwellinghouse in which it was attached, to redeem that article within 14 days of the date on which it was attached.</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-money-attachment">
<heading>Money attachment</heading>
<section eId="section-19">
<num>19</num>
<heading>Money attachment when premises are open</heading>
<subsection eId="section-19-1">
<num>(1)</num>
<content>
<p>Section 176 (when money attachment not competent) of the Bankruptcy and Diligence etc. (Scotland) Act 2007 is modified as follows.</p>
</content>
</subsection>
<subsection eId="section-19-2">
<num>(2)</num>
<content>
<p>
<mod>
After subsection (2), insert—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="asp" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">
<subsection>
<num>(2A)</num>
<intro>
<p>But—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>despite subsection (1), it is competent to execute a money attachment in any premises in which a trade or business is carried on on any day the premises are open (whether to the public generally or not) for the purposes of the trade or business, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>despite subsection (2), the execution of a money attachment may be commenced or continued in such premises at any time the premises are open (whether to the public generally or not) for the purposes of the trade or business, without the officer of court obtaining prior authority of the sheriff.</p>
</content>
</level>
</subsection>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</subsection>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-arrestment-of-ships">
<heading>Arrestment of ships</heading>
<section eId="section-20">
<num>20</num>
<heading>Arrestment of ships on a Sunday</heading>
<content>
<p>Any rule of law that prevents the execution of an arrestment on a Sunday ceases to have effect insofar as it relates to the arrestment of ships.</p>
</content>
</section>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="crossheading-final-provisions">
<heading>Final provisions</heading>
<section eId="section-21">
<num>21</num>
<heading>Ancillary provision</heading>
<subsection eId="section-21-1">
<num>(1)</num>
<content>
<p>The Scottish Ministers may by regulations make any incidental, supplementary, consequential, transitional, transitory or saving provision they consider appropriate for the purposes of, in connection with or for giving full effect to this Act.</p>
</content>
</subsection>
<subsection eId="section-21-2">
<num>(2)</num>
<intro>
<p>Regulations under this section may—</p>
</intro>
<level class="para1" eId="section-21-2-a">
<num>(a)</num>
<content>
<p>make different provision for different purposes,</p>
</content>
</level>
<level class="para1" eId="section-21-2-b">
<num>(b)</num>
<content>
<p>modify any enactment (including this Act).</p>
</content>
</level>
</subsection>
<subsection eId="section-21-3">
<num>(3)</num>
<intro>
<p>The regulations—</p>
</intro>
<level class="para1" eId="section-21-3-a">
<num>(a)</num>
<content>
<p>are subject to the affirmative procedure if they add to, replace or omit any part of the text of an Act,</p>
</content>
</level>
<level class="para1" eId="section-21-3-b">
<num>(b)</num>
<content>
<p>are subject to the negative procedure if they do not.</p>
</content>
</level>
</subsection>
</section>
<section eId="section-22">
<num>22</num>
<heading>Commencement</heading>
<subsection eId="section-22-1">
<num>(1)</num>
<content>
<p>
This section and sections
<ref href="#section-21">21</ref>
and
<ref href="#section-23">23</ref>
come into force on the day after Royal Assent.
</p>
</content>
</subsection>
<subsection eId="section-22-2">
<num>(2)</num>
<content>
<p>The other provisions of this Act come into force on such day as the Scottish Ministers may by regulations appoint.</p>
</content>
</subsection>
<subsection eId="section-22-3">
<num>(3)</num>
<intro>
<p>
Regulations under
<ref href="#section-22-2">subsection (2)</ref>
may—
</p>
</intro>
<level class="para1" eId="section-22-3-a">
<num>(a)</num>
<content>
<p>include transitional, transitory or saving provision,</p>
</content>
</level>
<level class="para1" eId="section-22-3-b">
<num>(b)</num>
<content>
<p>make different provision for different purposes.</p>
</content>
</level>
</subsection>
</section>
<section eId="section-23">
<num>23</num>
<heading>Short title</heading>
<content>
<p>The short title of this Act is the Bankruptcy and Diligence (Scotland) Act 2024.</p>
</content>
</section>
</hcontainer>
</body>
</act>
</akomaNtoso>