Bankruptcy (Scotland) Act 2016

[F1 147C Debtor fails to co-operate with AiB as trustee S

(1) This section applies where—

(a) AiB is the trustee but was not appointed as trustee under section 147A,

(b) the period of 5 years beginning with the date of sequestration a debtor’s estate has expired, and

(c) the debtor has not been discharged from that sequestration.

(2) AiB, if satisfied of the matters mentioned in subsection (3), may make a determination that the debtor has failed to co-operate.

(3) The matters are—

(a) that the debtor has failed to co-operate with AiB as trustee to such an extent that AiB is prevented from carrying out the AiB’s functions as trustee under this Act,

(b) that the failure is likely to continue, and

(c) that AiB has taken all reasonable steps to secure the debtor’s co-operation.

(4) If AiB makes a determination under subsection (2)—

(a) AiB must notify the debtor and every creditor known to AiB that AiB has made a determination under subsection (2), and

(b) section 116 applies as if there were substituted for subsection (2)—

“(2) AiB may at any time before the discharge of the debtor require the debtor to give an account in writing, in such form as may be prescribed, of the debtor’s current state of affairs.”, and

(c) section 138(6) applies as if for the words “must, as soon as practicable after the date which is 12 months after the date of the refusal” there were substituted “may, at any time after a refusal, if the debtor co-operates with AiB to such an extent that AiB is able to carry out the trustee's functions under this Act.]

Textual Amendments

F1 Ss. 147A-147C and cross-heading inserted (17.4.2025 for specified purposes) by Bankruptcy and Diligence (Scotland) Act 2024 (asp 9), ss. 12(2), 22(2) (with s. 12(4)); S.S.I. 2025/107, reg. 2(1)