Part 5Debt management and relief

Chapter 4Debt management schemes

Effect of plans etc.

119Existing county court proceedings to be stayed

1

This section applies if these conditions are met—

a

a debt repayment plan is arranged for a non-business debtor in accordance with an approved scheme;

b

proceedings in F1the county court (other than bankruptcy proceedings) are pending against the debtor in respect of a qualifying debt;

c

by virtue of section 116, the creditor under the qualifying debt is not entitled to continue the proceedings in respect of the debt;

d

the county court receives notice of the debt repayment plan.

2

The county court must stay the proceedings.

3

The court may allow costs already incurred by the creditor.

4

Subsection (5) applies if—

a

the court allows such costs, and

b

the qualifying debt is a specified debt.

5

The operator of the approved scheme may, if requested to do so by—

a

the non-business debtor, or

b

the creditor under the qualifying debt,

add the costs to the amount specified in the plan in respect of the debt.

6

But the operator may not add the costs under subsection (5) if, under the terms of the approved scheme, the operator is under a duty to terminate the plan.