Sequestration where debtor has few assets

7Discharge, conditions etc.

(1)After section 54B of the 1985 Act (inserted by section 17), insert—

54CDebtor to whom section 5(2ZA) applies: discharge

(1)Where section 5(2ZA) applies to a debtor, the debtor is discharged on the date which is 6 months after the date on which sequestration is awarded.

(2)A debtor may, following a discharge, apply to the Accountant in Bankruptcy for a certificate of discharge in the prescribed form..

(2)After section 55 of the 1985 Act, insert—

55ADischarge under section 54C: conditions

(1)This section applies where a debtor is discharged under section 54C.

(2)During the relevant period the debtor must comply with the condition in subsection (3) before the debtor, either alone or jointly with another person, obtains credit—

(a)to the extent of £2000 (or such other sum as may be prescribed) or more, or

(b)of any amount where, at the time of obtaining credit, the debtor has debts amounting to £1000 (or such other sum as may be prescribed) or more.

(3)The condition is that the debtor must inform the person who is providing credit to the debtor (or, as the case may be, jointly to the debtor and another person) that the debtor is required to comply with the conditions in this section.

(4)During the relevant period, the debtor must not engage (whether directly or indirectly) in a business under a name other than that to which the discharge relates unless the debtor complies with the condition in subsection (5).

(5)The condition is that the debtor must inform any person with whom the debtor enters into any business transaction of the name of the business to which the discharge relates.

(6)In this section, “relevant period” means the period of 6 months beginning with the date of discharge.

55BSection 55A: sanctions

(1)If a debtor fails to comply with the requirement imposed by subsection (2) or (4) of section 55A, that section applies in relation to the debtor as if the relevant period were the period of 12 months beginning with the date of discharge of the debtor.

(2)If a debtor fails to comply with the requirement imposed by subsection (2) or (4) of section 55A during the period when the section applies in relation to the debtor by virtue of subsection (1), the debtor commits an offence.

(3)A debtor who is guilty of an offence under subsection (2) is liable on summary conviction to—

(a)a fine not exceeding the statutory maximum,

(b)imprisonment for—

(i)a term not exceeding 3 months, or

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

(c)both such fine and imprisonment.

(4)A debtor who is guilty of an offence under subsection (2) is liable on conviction on indictment to—

(a)a fine,

(b)imprisonment for a term not exceeding 2 years, or

(c)both such fine and imprisonment..