Bankruptcy (Scotland) Act 2016

Financial education for debtor S

117 Financial education for debtor S

(1) The trustee must notify a living debtor that the debtor is required to undertake a prescribed course of financial education (a “financial education course”) specified by the trustee if, in the opinion of the trustee—

(a) any of the circumstances mentioned in subsection (2) applies, and

(b) undertaking the course would be appropriate for the debtor.

(2) The circumstances are—

(a) that in the 5 years ending on the date on which the sequestration was awarded—

(i) the debtor's estate was sequestrated,

(ii) the debtor granted a protected trust deed,

(iii) an analogous remedy (as defined in section 17(8)) was in force in respect of the debtor, or

(iv) the debtor participated in a debt management programme under which the debtor made regular payments,

(b) that the debtor is subject to, or under investigation with a view to an application being made for, a bankruptcy restrictions order,

(c) that the trustee considers that the pattern of the debtor's behaviour, whether before or after the award of sequestration, is such that the debtor would benefit from a financial education course, and

(d) that the debtor agrees to undertake a financial education course.

(3) The trustee must decide whether to issue a notification under subsection (1)—

(a) within 6 months beginning with the date of the award of sequestration, and

(b) in a case where section 143 applies, as soon as reasonably practicable after—

(i) the trustee ascertains the whereabouts of the debtor, or

(ii) the debtor makes contact with the trustee.

(4) A debtor must not be required to undertake or, as the case may be, complete the financial course specified by the trustee if, in the opinion of the trustee, the debtor—

(a) is unable to participate in the course as a result of the debtor's health (including by reason of disability or of physical or mental illness), or

(b) has completed a financial education course in the 5 years ending on the date on which the sequestration of the debtor's estate was awarded.

(5) Regulations under subsection (1) may in particular—

(a) prescribe the content, format and method of delivery of a course,

(b) prescribe different courses for different circumstances, or

(c) make provision for particular courses to be specified by a trustee where particular circumstances in subsection (2) apply.

(6) In subsection (2)(a)(iv), “debt management programme” includes in particular a programme approved in accordance with section 2 of the 2002 Act.

Commencement Information

I1 S. 117 in force at 30.11.2016 by S.S.I. 2016/294, reg. 2