PART 14

Voluntary trust deeds for creditors

Effect of protected status etc.

Sequestration petition by qualified creditor
177
1
A qualified creditor who is not a notified creditor or who has notified the trustee of objection to the trust deed within the relevant period may—
a
not later than 5 weeks after the date of registration under section 169 of the notice mentioned in that section, or
b
at any time if the creditor avers that the provision for distribution of the estate is, or is likely to be, unduly prejudicial to a creditor or class of creditors,
present a petition to the sheriff for sequestration of the debtor's estate.
2
Subsection (1)(b) is subject to section 13(2)(a).
3
The sheriff may award sequestration in pursuance of—
a
subsection (1)(a), only if satisfied that to do so would be in the best interests of the creditors, and
b
subsection (1)(b), only if satisfied that the creditor's averment is correct.