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PART 5 continued CHAPTER 2 continued
(2) The proper county court must revoke an enforcement restriction order in either of these cases—
(a) where it becomes apparent that, at the time the order was made, the condition in subsection 117B(3) was not met (debtor in fact had business debt), and he is still a debtor under the business debt, or any of the business debts, in question;
(b) where the debtor subsequently becomes a debtor under a business debt, and he is still a debtor under that debt.
(3) The proper county court must revoke an enforcement restriction order where it becomes apparent that, at the time the order was made, the condition in section 117B(4) was not met (debtor in fact excluded under ERO, voluntary arrangement or bankruptcy exclusion).
(4) The proper county court must revoke an enforcement restriction order where, after the order is made—
(a) the debtor becomes excluded under the voluntary arrangement exclusion, or
(b) a bankruptcy order is made against the debtor, and is still in force.
(5) The proper county court must revoke an enforcement restriction order in either of these cases—
(a) where it becomes apparent that, at the time the order was made, the condition in section 117B(5) was not met (debtor in fact able to pay qualifying debts);
(b) where the debtor is now able to pay all of his qualifying debts.
(6) The proper county court must revoke an enforcement restriction order in either of these cases—
(a) where it becomes apparent that, at the time the order was made, the condition in section 117B(6) was not met (debtor in fact not suffering from sudden and unforeseen deterioration in financial circumstances);
(b) where the debtor is no longer suffering from the deterioration in financial circumstances which was taken into account for the purposes of section 117B(6) (even if he is suffering from some other sudden and unforeseen deterioration in his financial circumstances).
(7) The proper county court must revoke an enforcement restriction order in either of these cases—
(a) where it becomes apparent that, at the time the order was made, the condition in section 117B(7) was not met (in fact no realistic prospect of improvement in debtor’s financial circumstances);
(b) where there is no longer a realistic prospect that the debtor’s financial circumstances will improve during the period within which the order would continue to have effect (if not revoked).
(8) The proper county court must revoke an enforcement restriction order in either of these cases—
(a) where it becomes apparent that, at the time the order was made, the condition in section 117B(8) was not met (not in fact fair and equitable to make order);
(b) where it is not fair and equitable for the order to continue to have effect.
(1) The proper county court may revoke an enforcement restriction order in any case where there is no duty under this Part to revoke it.
(2) The power of revocation under this section may, in particular, be exercised in any of the following cases—
(a) where the order includes, or has previously included, a repayment requirement, and the debtor has failed to comply with that requirement;
(b) where the debtor has failed to provide the proper county court with the particulars required by—
(i) section 117J(2) and (3), or
(ii) section 117J(4).
(3) The power of revocation under this section is exercisable—
(a) on the application of the debtor;
(b) on the application of a qualifying creditor;
(c) of the court’s own motion.
(1) This section applies if, under any duty or power in this Part, the proper county court revokes an enforcement restriction order.
(2) The order ceases to have effect in accordance with the terms of the revocation.
(1) If a notifiable event occurs in relation to an enforcement restriction order, the proper county court must give notice of the event to every identified qualifying creditor of the debtor.
(2) There is a notifiable event in any of the following cases—
(a) when the enforcement restriction order is made;
(b) when the enforcement restriction order is varied;
(c) when the enforcement restriction order is revoked;
(d) when the proper county court is given notice under any of the provisions listed in section 117H(7) (effect of administration order or debt relief order on enforcement restriction order).
(3) A person is an identified qualifying creditor of the debtor if—
(a) the debtor has notified the proper county court, or another court whilst it was previously the proper county court, that the person is a qualifying creditor, or
(b) the proper county court is satisfied that the person is a qualifying creditor.
Sections 117T to 117W apply for the purposes of this Part.
(1) In this Part—
“enforcement restriction order” has the meaning given by section 117A;
“debtor” has the meaning given by section 117B;
“qualifying creditor” means a creditor under a qualifying debt.
(2) References to the currency of an enforcement restriction order are references to the period which—
(a) begins when the order first has effect, and
(b) ends when the order ceases to have effect.
(3) In relation to an enforcement restriction order, references to the proper county court are references to the county court that made the order.
(4) But that is subject to rules of court as to the venue for, and transfer of, proceedings in county courts.
(1) All debts are qualifying debts, except for the following—
(a) any debt secured against an asset;
(b) any debt of a description specified in regulations.
(2) A business debt is any debt (whether or not a qualifying debt) which is incurred by a person in the course of a business.
(3) Only debts that have already arisen are included in references to debts; and accordingly such references do not include any debt that will arise only on the happening of some future contingency.
(1) In a case where an individual is the debtor under a debt that is repayable by a single payment, the debtor is to be regarded as unable to pay the debt only if—
(a) the time for making the payment has been reached,
(b) the debtor has failed to make the single payment, and
(c) the debtor is unable to make that payment.
(2) In a case where an individual is the debtor under a debt that is repayable by a number of payments, the debtor is to be regarded as unable to pay the debt only if—
(a) the time for making the first of the payments has been reached,
(b) the debtor has failed to make one or more of the payments, and
(c) the debtor is unable to make all of the missed payments.
(1) The debtor is excluded under the ERO exclusion if—
(a) an enforcement restriction order currently has effect in respect of him, or
(b) an enforcement restriction order has previously had effect in respect of him, and the period of 12 months — beginning with the day when that order ceased to have effect — has yet to finish.
(2) But in a case that falls within subsection (1)(b), the debtor is not excluded under the ERO exclusion if the previous enforcement restriction order—
(a) ceased to have effect in accordance with any of the provisions listed in section 117H(7) (effect of administration order or debt relief order on enforcement restriction order), or
(b) was revoked in accordance with section 117O(1)(b) (debtor no longer has any qualifying debts).
(3) The debtor is excluded under the voluntary arrangement exclusion if—
(a) an interim order under section 252 of the Insolvency Act 1986 has effect in respect of him (interim order where debtor intends to make proposal for voluntary arrangement), or
(b) he is bound by a voluntary arrangement approved under Part 8 of the Insolvency Act 1986.
(4) The debtor is excluded under the bankruptcy exclusion if—
(a) a petition for a bankruptcy order to be made against him has been presented but not decided, or
(b) he is an undischarged bankrupt.
(1) It is for the Lord Chancellor to make regulations under this Part.
(2) Any power to make regulations under this Part is exercisable by statutory instrument.
(3) A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of either House of Parliament.”
(2) In Schedule 6A to the Magistrates' Courts Act 1980 (c. 43) (fines that may be altered under section 143 of the 1980 Act) insert the following entry at the appropriate place in the entries relating to the County Courts Act 1984 (c. 28)—
| “Section 117K(1) (enforcement restriction orders: failure to provide information) | £250” |
(3) In section 98 of the Courts Act 2003 (c. 39) (register of judgments and orders etc.), in subsection (1), for paragraph (d) substitute—
“(d) enforcement restriction orders under Part 6A of that Act (power of county courts to make enforcement restriction orders);”.
(1) In the Second Group of Parts of the Insolvency Act 1986 (c. 45) (insolvency of individuals), before Part 8 there is inserted, as Part 7A, the Part set out in Schedule 17.
(2) After Schedule 4 to that Act there is inserted, as Schedules 4ZA and 4ZB, the Schedules set out in Schedules 18 and 19.
(3) Schedule 20 (which makes amendments consequential on provisions contained in Schedule 17) has effect.
(1) A debt management scheme is a scheme that meets the conditions in this section.
(2) The scheme must be open to some or all non-business debtors.
(3) A scheme is open to a non-business debtor if it allows him to make a request to the scheme operator for a debt repayment plan to be arranged for him.
(4) The scheme must provide that, if such a request is made—
(a) a decision must be made about whether a debt repayment plan is to be arranged for the non-business debtor, and
(b) such a plan must be arranged (if that is the decision made).
(5) The scheme must be operated by a body of persons (whether a body corporate or not).
(1) A debt repayment plan is a plan that meets the conditions in this section.
(2) The plan must specify all of the debtor’s qualifying debts.
(3) The plan must require the debtor to make payments in respect of each of the specified debts.
(4) It does not matter if—
(a) the plan requires payments of different amounts to be made in respect of a specified debt at different times;
(b) the payments that the plan requires to be made in respect of a specified debt would, if all made, repay the debt only in part.
(1) The supervising authority may approve one or more debt management schemes.
(2) Regulations may make provision about any or all of the following—
(a) conditions that must be met before the supervising authority may approve a debt management scheme;
(b) considerations that the supervising authority must, or must not, take into account in deciding whether to approve a debt management scheme.
(3) Regulations under this section may, in particular, make provision about conditions or considerations that relate to any matter listed in Schedule 21.
(4) The supervising authority may approve a debt management scheme whether a body is—
(a) operating the scheme at the time of the approval, or
(b) proposing to operate the scheme from a time in the future.
(1) Regulations may specify a procedure for making an application for approval of a debt management scheme.
(2) Regulations under this section may, in particular, specify a procedure that requires any or all of the following—
(a) an application to be made in a particular form;
(b) information to be supplied in support of an application;
(c) a fee to be paid in respect of an application.
(1) The approval of a debt management scheme has effect subject to any relevant terms.
(2) Relevant terms are—
(a) the terms (if any) specified in regulations that relate to the approval, and
(b) the terms (if any) that the supervising authority includes in the approval.
(3) Relevant terms may, in particular, deal with all or any of the following—
(a) the start of the approval;
(b) the expiry of the approval;
(c) the termination of the approval, including termination because of the breach of some other term.
(4) Relevant terms may, in particular, impose requirements on the scheme operator.
(5) Relevant terms may, in particular, relate to any matter listed in Schedule 21.
(6) Regulations may make provision about terms that the supervising authority must, or must not, include in an approval.
(1) This section applies if—
(a) a debt repayment plan is arranged for a non-business debtor in accordance with an approved scheme, and
(b) the plan comes into effect.
(2) The debtor is discharged from the debts that are specified in the plan.
(3) The discharge from a particular specified debt takes effect at the time when all the required payments have been made.
(4) The required payments are the payments in respect of the debt that are required by the provision included in the plan in accordance with section 110(3).
(1) This section applies during the currency of a debt repayment plan arranged in accordance with an approved scheme.
(2) No qualifying creditor of the debtor is to present a bankruptcy petition against the debtor in respect of a qualifying debt, unless—
(a) regulations provide otherwise, or
(b) the creditor has the permission of a county court.
(3) A county court may give permission for the purposes of subsection (2)(b) subject to such conditions as it thinks fit.
(4) The reference to the currency of a debt repayment plan is a reference to the period which—
(a) begins when the plan first has effect, and
(b) ends when the plan ceases to have effect.
(1) This section applies in relation to a non-business debtor during a period of protection.
(2) No qualifying creditor of the debtor is to pursue any remedy for the recovery of a qualifying debt, unless—
(a) regulations provide otherwise, or
(b) the creditor has the permission of a county court.
(3) A county court may give permission for the purposes of subsection (2)(b) subject to such conditions as it thinks fit.
(4) This section does not have any effect in relation to bankruptcy proceedings.
(1) This section applies in relation to a non-business debtor during a period of protection.
(2) No qualifying creditor is to charge any sum by way of interest, fee or other charge in respect of a qualifying debt, unless—
(a) regulations provide otherwise, or
(b) the creditor has the permission of a county court.
(3) A county court may give permission for the purposes of subsection (2)(b) subject to such conditions as it thinks fit.
(1) This section applies in relation to a non-business debtor during a period of protection.
(2) In relation to the debtor, a domestic utility creditor is any person who—
(a) provides the debtor with a supply of mains gas or mains electricity for the debtor’s own domestic purposes, and
(b) is a creditor under a qualifying debt that relates to the provision of that supply.
(3) No domestic utility creditor is to stop the supply of gas or electricity, or the supply of any associated services, except in the cases in subsections (4) to (7).
(4) The first case is where the reason for stopping a supply relates to the non-payment by the debtor of charges incurred in connection with that supply after the start of the period of protection.
(5) The second case is where the reason for stopping a supply is unconnected with the non-payment by the debtor of any charges incurred in connection with—
(a) that supply, or
(b) any other supply of mains gas or mains electricity, or of associated services, that is provided by the domestic utility creditor.
(6) The third case is where regulations allow the supply to be stopped.
(7) The fourth case is where a county court gives permission to stop a supply.
(8) A county court may give permission for the purposes of subsection (7) subject to such conditions as it thinks fit.
(9) A supply of mains gas is a supply of the kind mentioned in section 5(1)(b) of the Gas Act 1986 (c. 44).
(10) A supply of mains electricity is a supply of the kind mentioned in section 4(1)(c) of the Electricity Act 1989 (c. 29).
(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 a 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.
(1) Regulations may make provision about the registration of either or both of the following—
(a) any request made to the operator of an approved scheme for a debt repayment plan to be arranged in accordance with the scheme;
(b) any debt repayment plan arranged for a non-business debtor in accordance with an approved scheme.
(2) In subsection (1) “registration” means registration in the register maintained under section 98 of the Courts Act 2003 (c. 39) (the register of judgments and orders etc).
(3) Regulations under this section may amend section 98 of the 2003 Act.
(1) This section applies if—
(a) a debt repayment plan is arranged for a debtor in accordance with an approved scheme, and
(b) immediately before the plan is arranged, other debt management arrangements are in force in respect of the debtor.
(2) The plan is not to come into effect unless the other debt management arrangements cease to be in force.
(3) Any provision (whether in the plan or elsewhere) about when the plan is to come into effect is subject to subsection (2).
(4) If the operator of the approved scheme is aware of the other debt management arrangements, the operator must give the relevant authority notice that the plan has been arranged.
(5) In a case where the operator is aware of other debt management arrangements at the time the plan is arranged, it must give the notice as soon as practicable after the plan is arranged.
(6) In a case where the operator becomes aware of those arrangements after the plan is arranged, it must give the notice as soon as practicable after becoming aware of them.
(7) “Other debt management arrangements” means any of the following—
(a) an administration order under Part 6 of the County Courts Act 1984 (c. 28);
(b) an enforcement restriction order under Part 6A of the County Courts Act 1984;
(c) a debt relief order under Part 7A of the Insolvency Act 1986 (c. 45).
(8) “The relevant authority” means—
(a) in relation to an administration order: the proper county court (within the meaning of Part 6 of the County Courts Act 1984);
(b) in relation to an enforcement restriction order: the proper county court (within the meaning of Part 6A of the County Courts Act 1984);
(c) in relation to a debt relief order: the official receiver.
(9) For the purposes of this section a debt relief order is “in force” if the moratorium applicable to the order under section 251H of the Insolvency Act 1986 has not yet ended.
(1) This section applies if a debt repayment plan is arranged for a debtor in accordance with an approved scheme.
(2) An affected creditor may appeal to a county court against any of the following—
(a) the fact that the plan has been arranged;
(b) the fact that a debt owed to the affected creditor has been specified in the plan;
(c) the terms of the plan (including any provision included in the plan in accordance with section 110(3)).
(3) Subsection (2)(c) does not allow an affected creditor to appeal against the fact that a debt owed to any other creditor has been specified in the plan.
(4) In this section “affected creditor” means the creditor under any debt which is specified in the plan.
(1) This section applies if an appeal is made to a county court under section 122.
(2) The county court may determine the appeal in any way that it thinks fit.
(3) The county court may make such orders as may be necessary to give effect to the determination of the appeal.
(4) The county court may, in particular, order the scheme operator to do any of the following—
(a) to reconsider the decision to arrange the plan;
(b) to reconsider any decision about the terms of the plan;
(c) to modify the debt repayment plan;
(d) to revoke the debt repayment plan.
(5) The county court may make such interim provision as it thinks fit in relation to the period before the appeal is determined.
(6) The county court is the county court to which the appeal is made.
(1) The operator of an approved scheme may recover its costs by charging debtors or affected creditors (or both).
(2) In this section—
“costs” means the costs which the operator incurs, taking one year with another, in connection with the approved scheme, so far as those costs are reasonable;
“debtors” means—
debtors who make requests for debt repayment plans to be arranged in accordance with the approved scheme, and
debtors for whom debt repayment plans are arranged in accordance with the approved scheme.
Tribunals, Courts and Enforcement Act 2007