Part XXIV Insolvency
Bankruptcy
I1372 Petitions.
1
The Authority may present a petition to the court—
a
under section 264 of the 1986 Act (or Article 238 of the 1989 Order) for a bankruptcy order to be made against an individual; or
b
under section 5 of the 1985 Act for the sequestration of the estate of an individual.
2
But such a petition may be presented only on the ground that—
a
the individual appears to be unable to pay a regulated activity debt; or
b
the individual appears to have no reasonable prospect of being able to pay a regulated activity debt.
3
An individual appears to be unable to pay a regulated activity debt if he is in default on an obligation to pay a sum due and payable under an agreement.
4
An individual appears to have no reasonable prospect of being able to pay a regulated activity debt if—
a
the Authority has served on him a demand requiring him to establish to the satisfaction of the Authority that there is a reasonable prospect that he will be able to pay a sum payable under an agreement when it falls due;
b
at least three weeks have elapsed since the demand was served; and
c
the demand has been neither complied with nor set aside in accordance with rules.
5
A demand made under subsection (4)(a) is to be treated for the purposes of the 1986 Act (or the 1989 Order) as if it were a statutory demand under section 268 of that Act (or Article 242 of that Order).
6
For the purposes of a petition presented in accordance with subsection (1)(b)—
a
the Authority is to be treated as a qualified creditor; and
b
a ground mentioned in subsection (2) constitutes apparent insolvency.
7
“Individual” means an individual—
a
who is, or has been, an authorised person; or
b
who is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
8
“Agreement” means an agreement the making or performance of which constitutes or is part of a regulated activity carried on by the individual concerned.
9
“Rules” means—
a
in England and Wales, rules made under section 412 of the 1986 Act;
b
in Scotland, rules made by order by the Treasury, after consultation with the Scottish Ministers, for the purposes of this section; and
c
in Northern Ireland, rules made under Article 359 of the 1989 Order.
373 Insolvency practitioner’s duty to report to Authority.
1
If—
a
a bankruptcy order or sequestration award is in force in relation to an individual by virtue of a petition presented by a person other than the Authority, and
b
it appears to the insolvency practitioner that the individual is carrying on, or has carried on, a regulated activity in contravention of the general prohibition,
the insolvency practitioner must report the matter to the Authority without delay.
2
“Bankruptcy order” means a bankruptcy order under Part IX of the 1986 Act (or Part IX of the 1989 Order).
3
“Sequestration award” means an award of sequestration under section 12 of the 1985 Act.
4
“Individual” includes an entity mentioned in section 374(1)(c).
374 Authority’s powers to participate in proceedings.
1
This section applies if a person other than the Authority presents a petition to the court—
a
under section 264 of the 1986 Act (or Article 238 of the 1989 Order) for a bankruptcy order to be made against an individual;
b
under section 5 of the 1985 Act for the sequestration of the estate of an individual; or
c
under section 6 of the 1985 Act for the sequestration of the estate belonging to or held for or jointly by the members of an entity mentioned in subsection (1) of that section.
2
The Authority is entitled to be heard—
a
at the hearing of the petition; and
b
at any other hearing in relation to the individual or entity under—
i
Part IX of the 1986 Act;
ii
Part IX of the 1989 Order; or
iii
the 1985 Act.
3
A copy of the report prepared under section 274 of the 1986 Act (or Article 248 of the 1989 Order) must also be sent to the Authority.
4
A person appointed for the purpose by the Authority is entitled—
a
to attend any meeting of creditors of the individual or entity;
b
to attend any meeting of a committee established under section 301 of the 1986 Act (or Article 274 of the 1989 Order);
c
to attend any meeting of commissioners held under paragraph 17 or 18 of Schedule 6 to the 1985 Act; and
d
to make representations as to any matter for decision at such a meeting.
5
“Individual” means an individual who—
a
is, or has been, an authorised person; or
b
is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
6
“Entity” means an entity which—
a
is, or has been, an authorised person; or
b
is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.