Part 1Bankruptcy

The trustee in the sequestration

8Duties of trustee

(1)

In section 3 of the 1985 Act (functions of permanent trustee)—

(a)

after subsection (3), insert—

“(3A)

If the trustee has reasonable grounds to believe that any behaviour on the part of the debtor is of a kind that would result in a sheriff granting, under section 56B(1) of this Act, an application for a bankruptcy restrictions order, he shall report the matter to the Accountant in Bankruptcy.”;

(b)

in subsection (4), after “(3)” insert “ or (3A) ”;

(c)

in subsection (5), for “subsection (3)” substitute “ subsections (3) and (3A) ”; and

(d)

after subsection (7), insert—

“(8)

The trustee shall comply with the requirements of subsections (1)(a) to (d) and (2) above only in so far as, in his view, it would be of financial benefit to the estate of the debtor and in the interests of the creditors to do so.”.

(2)

In section 39 of that Act (management and realisation of estate), after subsection (8), insert—

“(9)

The trustee—

(a)

shall comply with the requirements of subsection (4) of this section; and

(b)

may do anything permitted by this section,

only in so far as, in his view, it would be of financial benefit to the estate of the debtor and in the interests of the creditors to do so.”.

(3)

In section 49 of that Act (adjudication of claims), after subsection (2), insert—

“(2A)

On accepting or rejecting, under subsection (2) above, every claim submitted or deemed to have been re-submitted, the trustee shall, as soon as is reasonably practicable, send a list of every claim so accepted or rejected (including the amount of each claim and whether he has accepted or rejected it) to—

(a)

the debtor; and

(b)

every creditor known to the trustee.”.