PART 8Administration of estate by trustee

Financial education for debtor

117Financial education for debtor

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.