PART 5APPROVAL OF DEBT PAYMENT PROGRAMMES

Debtors who may apply for approval21.

(1)

Subject to paragraphs (2) and (3), a debtor may apply for approval of a debt payment programme where the programme provides for the payment of one or more debts.

(2)

An application for approval may not be made where—

(a)

subject to paragraph (4), payment of a debt of a debtor is being made under a conjoined arrestment order;

(b)

a debtor is a party to a protected trust deed;

(c)

a debtor’s estate has been sequestrated, and the debtor has not been discharged under section 54 (automatic discharge after a year) or 75 (amendments, repeals and transitional provisions) of the 1985 Act;

(d)

a debtor is a bankrupt, who has not been discharged under sections 279 (duration) or 280 (discharge by order of the court) of the 1986 Act; or

(e)

a debtor is subject to a bankruptcy restrictions order (including an interim order) or bound by a bankruptcy restrictions undertaking, under Schedule 4A (bankruptcy restrictions order and undertaking) to the 1986 Act13 or under section 56A or as the case may be 56F or 56G of the 1985 Act14.

(3)

An application for approval of a debt payment programme which provides for the payment of only one debt may not be made where, in respect of that debt, the debtor is involved in a—

(a)

time to pay direction under section 1 (time to pay directions) of the Debtors (Scotland) Act 1987, or time to pay order under section 5 (time to pay orders) of that Act15; or

(b)

time order under section 129 (time orders) of the Consumer Credit Act 197416.

(4)

An application may be made where a creditor, including a creditor of a debt being paid under a conjoined arrestment order in respect of another debt not so paid, has attempted to enforce a debt due by the debtor by any lawful means.