PART 6

Debtor's contribution

Common financial tool

Assessment of debtor's contribution
89
1
The Scottish Ministers may by regulations specify a method (the “common financial tool”) to be used to assess an appropriate amount of a living debtor's income (the “debtor's contribution”) to be paid to a trustee after the sequestration of the debtor's estate.
2
Regulations under subsection (1) may in particular prescribe—
a
a method for assessing a debtor's financial circumstances (including the debtor's assets, income, liabilities and expenditure),
b
a method for determining a reasonable amount of expenditure for a debtor after the sequestration of the debtor's estate,
c
the proportion of a debtor's income that is to constitute the debtor's contribution,
d
that a method determined by another person must be used (with or without modification in accordance with regulations made under subsection (1)) as the common financial tool.
3
The common financial tool must ensure that the amount of reasonable expenditure for a debtor is not less than the total amount of any income received by the debtor by way of guaranteed minimum pension (within the meaning of the Pension Schemes Act 1993).
4
The common financial tool must ensure that an amount is allowed for—
a
aliment for the debtor, and
b
the debtor's relevant obligations.
5
The “debtor's relevant obligations” are any obligation of—
a
aliment owed by the debtor (“obligation of aliment” having the meaning given by section 1(2) of the Family Law (Scotland) Act 1985),
b
the debtor to make a periodical allowance to a former spouse or former civil partner, and
c
the debtor to pay child support maintenance under the Child Support Act 1991.
6
The amount allowed for the debtor's relevant obligations referred to in paragraphs (a) and (b) of subsection (5) need not be sufficient for compliance with a subsisting order or agreement as regards the aliment or periodical allowance.
S. 89 in force at 30.11.2016 by S.S.I. 2016/294, reg. 2