Bankruptcy (Scotland) Act 1985 (repealed)

Period between award of sequestration and statutory meeting of creditors S

18 Interim preservation of estate. S

(1) The interim trustee may give general or particular directions to the debtor relating to the management of the debtor’s estate.

(2) In exercising the functions conferred on him by section 2(1)(a) of this Act, an interim trustee may—

(a) require the debtor to deliver up to him any money or valuables, or any document relating to the debtor’s business or financial affairs, belonging to or in the possession of the debtor or under his control;

(b) place in safe custody anything mentioned in paragraph (a) above;

(c) require the debtor to deliver up to him any perishable goods belonging to the debtor or under his control and may arrange for the sale or disposal of such goods;

(d) make or cause to be made an inventory or valuation of any property belonging to the debtor;

(e) require the debtor to implement any transaction entered into by the debtor;

(f) effect or maintain insurance policies in respect of the business or property of the debtor;

(g) close down the debtor’s business.

(3) The court, on the application of the interim trustee, may—

(a) empower the interim trustee to—

(i) carry on any business of the debtor;

(ii) borrow money,

in so far as it is necessary for the trustee to do so to safeguard the debtor’s estate;

(b) on cause shown, grant a warrant authorising the interim trustee to enter the house where the debtor resides or his business premises and to search for and take possession of anything mentioned in paragraphs (a) and (c) of subsection (2) above, if need be by opening shut and lock-fast places; or

(c) make such other order to safeguard the debtor’s estate as it thinks appropriate.

(4) The court, on an application by the debtor on the grounds that a direction under subsection (1) above is unreasonable, may—

(a) if it considers the direction to be unreasonable, set aside the direction; and

(b) in any event, give such directions to the debtor regarding the management of his estate as it considers appropriate;

but, subject to any interim order of the court, the debtor shall comply with the direction appealed against pending the final determination of the appeal.

(5) The debtor shall be guilty of an offence if—

(a) he fails without reasonable excuse to comply with—

(i) a direction under subsection (1) or (4)(b) above; or

(ii) a requirement under subsection (2)(a), (c) or (e) above; or

(b) he obstructs the interim trustee where the interim trustee is acting in pursuance of subsection (3)(b) above.

(6) A person convicted of an offence under subsection (5) above shall be liable—

(a) on summary conviction to a fine not exceeding the statutory maximum or—

(i) to imprisonment for a term not exceeding 3 months; or

(ii) if he has previously been convicted of an offence inferring dishonest appropriation of property or an attempt at such appropriation, to imprisonment for a term not exceeding 6 months,

or (in the case of either sub-paragraph) to both such fine and such imprisonment; or

(b) on conviction on indictment to a fine or to imprisonment for a term not exceeding 2 years or to both.

19 Debtor’s list of assets and liabilities. S

(1) The debtor shall deliver to the interim trustee—

(a) if the petitioner for sequestration is the debtor, within 7 days of the appointment of the interim trustee;

(b) if the petitioner for sequestration is a creditor or a trustee acting under a trust deed, within 7 days of the interim trustee notifying the debtor of his appointment,

a list of the debtor’s assets and liabilities in the prescribed form.

(2) If without reasonable excuse the debtor—

(a) fails to deliver in accordance with subsection (1) above a list of assets and liabilities to the interim trustee; or

(b) fails to disclose any material fact in it; or

(c) makes a material misstatement in it,

he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding 3 months or to both.

20 Trustee’s duties on receipt of list of assets and liabilities. S

(1) On receipt of the debtor’s list of assets and liabilities, the interim trustee shall prepare a preliminary statement of the debtor’s affairs so far as within the knowledge of the interim trustee and shall indicate in the statement whether, in his opinion, the debtor’s assets are unlikely to be sufficient to pay any dividend whatsoever in respect of the debts mentioned in paragraphs (e) to (h) of section 51(1) of this Act.

(2) The interim trustee shall, not later than 4 days before the date fixed for the statutory meeting, send to the Accountant in Bankruptcy—

(a) a copy of the debtor’s list of assets and liabilities; and

(b) a copy of the preliminary statement of the debtor’s affairs; and

(c) written comments by the interim trustee indicating what in his opinion are the causes of the insolvency and to what extent the conduct of the debtor may have contributed to the insolvency.

(3) The written comments made under subsection (2)(c) above shall be absolutely privileged.

(4) The interim trustee may request—

(a) the debtor to appear before him and to give information relating to his assets, his dealings with them or his conduct in relation to his business or financial affairs; or

(b) the debtor’s spouse or any other person who the interim trustee believes can give such information to give that information,

and if the interim trustee considers it necessary he may apply to the sheriff for an order requiring the debtor, spouse or other person to appear before the sheriff for private examination.

(5) Subsections (2) to (4) of section 44 and sections 46 and 47 of this Act shall apply, subject to any necessary modifications, in respect of private examination under subsection (4) above as they apply in respect of private examination under the said subsection (2).

Valid from 01/04/1993

[20A F1 Statutory meeting. S

A meeting of creditors called by the interim trustee under section 21 or 21A of this Act shall, in this Act, be referred to as “the statutory meeting”.]

Textual Amendments

F1 S. 20A inserted (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para.9 (with s. 12(6)); S.I. 1993/438, art.3