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Bankruptcy and Diligence etc. (Scotland) Act 2007

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211Debt payment programmes with debt reliefS

This section has no associated Explanatory Notes

(1)The 2002 Act is amended as follows.

(2)In section 2 (debt payment programmes)—

(a)after subsection (1) insert—

(1A)Subsection (1) above is subject to any provision in regulations made under section 7A(1) below.; and

(b)in subsection (4), after “section 7(1)” insert “ or 7A(1) ”.

(3)After section 7 insert—

7ADebt payment programmes: power to make provision about debt relief

(1)The Scottish Ministers may, by regulations, make such further provision as they think fit in connection with debt payment programmes for the purposes of—

(a)enabling such programmes to provide for the payment of part only of money owed by debtors; and

(b)on the completion of such programmes or otherwise, enabling any liability of debtors to pay any part of such money owed as is outstanding to be discharged.

(2)The regulations may, in particular, make provision about—

(a)the minimum proportion or percentage of debts which shall be paid under such debt payment programmes;

(b)without prejudice to section 7(2)(h) to (j) above, the consent of creditors for the purposes of section 2(4) above (including the circumstances in which consent by a majority by number or in value shall be sufficient);

(c)the effect of such programmes on debtors' liabilities for interest, fees, penalties and other charges in relation to debts being paid under such programmes;

(d)the effect of such programmes on the rights of creditors to charge interest, fees, penalties or other charges in relation to debts being paid under such programmes;

(e)circumstances in which, on completion of such programmes or otherwise, any liability of debtors to pay—

(i)part of any debts as are outstanding; or

(ii)any interest, fees, penalties or other charges in relation to such debts,

is to be discharged.

(3)Subsections (3) and (4) of section 7 above apply for the purposes of regulations under this section as they apply for the purposes of regulations under subsection (1) of that section..

(4)In section 62 (regulations and orders)—

(a)in subsection (3), for “of this Act”, where those words second occur, substitute “ above or regulations made under section 7A above ”; and

(b)in subsection (4), after “section 7 above” insert “ , any regulations made under section 7A above ”.

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