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Bankruptcy (Scotland) Act 2016

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This is the original version (as it was originally enacted).

94Deductions from debtor’s earnings and other income

(1)Subsections (2) to (6) apply where, under a debtor contribution order—

(a)the debtor is required to pay to the trustee an amount from the debtor’s earnings or other income, or

(b)in accordance with section 90(6), a third person is required to pay to the trustee money otherwise due to the debtor by way of income.

(2)The debtor must give the person mentioned in subsection (3) an instruction to make—

(a)deductions of specified amounts from the debtor’s earnings or other income, and

(b)payments to the trustee of the amounts so deducted.

(3)The person—

(a)in the case of an amount to be paid from the debtor’s earnings from employment, is the person by whom the debtor is employed,

(b)in the case of an amount to be paid from other earnings or income of the debtor, is a third person who is required to pay the earnings or income to the debtor, and

(c)in the case mentioned in subsection (1)(b), is the third person who is required to pay the income to the trustee.

(4)The trustee may give the person mentioned in subsection (3) an instruction of the type mentioned in subsection (2) if the debtor fails—

(a)to comply with the requirements imposed by that subsection, and

(b)to pay the debtor’s contribution in respect of 2 payment intervals applying by virtue of the debtor contribution order.

(5)A person mentioned in subsection (3) must comply with an instruction provided in accordance with subsection (2) or (4).

(6)Where the person by whom the debtor is employed or another third person pays a sum of money to the trustee in accordance with this section, that person is discharged from any liability to the debtor to the extent of the sum so paid.

(7)The Scottish Ministers may by regulations make provision about instructions to be provided under this section, including in particular—

(a)the form in which an instruction must be made,

(b)the manner in which an instruction provided in accordance with subsection (2) or (4) affects the recipient of that instruction, and

(c)the consequence of any failure of a recipient of an instruction provided in accordance with subsection (2) or (4) to comply with the duty imposed by subsection (5).

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