PART 6Debtor’s contribution
Payments by debtor following sequestration
96Payment break
1
The trustee may, on the application of the debtor, extend the payment period of a debtor contribution order by granting a payment break.
2
A “payment break” is a period not exceeding 6 months during which payments under the debtor contribution order are deferred.
3
A debtor may apply for a payment break if—
a
there has been a reduction of at least 50% in the debtor’s disposable income (as determined using the common financial tool) as a result of any of the circumstances mentioned in subsection (4) arising in relation to the debtor, and
b
the debtor has not previously applied for a payment break in relation to a debtor contribution order applying after the sequestration of the debtor’s estate.
4
The circumstances are—
a
a period of unemployment or a change in employment,
b
a period of leave from employment because of—
i
the birth or adoption of a child, or
ii
the need to care for a dependant,
c
a period of illness of the debtor,
d
a divorce,
e
a dissolution of civil partnership,
f
a separation from a person to whom the debtor is married or with whom the debtor is in civil partnership, and
g
the death of a person who, along with the debtor, cared for a dependant of the debtor.
5
An application for a payment break must specify the period during which the debtor wishes payments to be deferred.
6
If, in the opinion of the trustee, a payment break is fair and reasonable, the trustee may grant it on such conditions and for such period as the trustee thinks fit.
7
The trustee must notify in writing the grant of a payment break to—
a
the debtor,
b
AiB (if the trustee is not AiB), and
c
any third person required to make a payment under the debtor contribution order.
8
If the trustee decides not to grant a payment break, the trustee must notify the debtor of that decision and of the reasons for that decision.
9
The payment period in a debtor contribution order is deemed to be varied by the addition to the period of any payment break granted under this section.