Bankruptcy and Diligence (Scotland) Act 2024

Prospective

5 Recall of sequestration: payment of interest S

(1) Part 2 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2) In section 30 (recall of sequestration by sheriff)—

(a) in subsection (2), in paragraph (a), after “full” insert “(including the payment of any interest payable on the debtor’s debts and the payment of the outlays and remuneration of the interim trustee and of the trustee)”, and

(b) in subsection (4), in paragraph (a), after “full of” insert “—

(i) any interest payable on the debtor’s debts (see section 37A), and

(ii)”.

(3) In section 32(4) (application under section 31: further procedure)—

(a) in paragraph (b), for “(including” to the end of that paragraph substitute “, including the payment in full of—

(i) any interest payable on the debtor’s debts (see section 37A),

(ii) the outlays and remuneration of the interim trustee and of the trustee,”, and

(b) in paragraph (c)(ii), after “payment of” insert “any interest payable on the debtor’s debts and payment of”.

(4) In section 34(1) (recall of sequestration by Accountant in Bankruptcy), in paragraph (a), for “(including the outlays and remuneration of the interim trustee and the trustee)” substitute “, including the payment in full of—

(i) any interest payable on the debtor’s debts (see section 37A),

(ii) the outlays and remuneration of the interim trustee and of the trustee,”.

(5) In section 35 (recall where Accountant in Bankruptcy trustee)—

(a) in subsection (1), in paragraph (b), after “including” insert “the payment of any interest payable on the debtor’s debts and the payment of”, and

(b) in subsection (6), in paragraph (a), for “(including” to the end of that paragraph substitute “, including the payment in full of—

(i) any interest payable on the debtor’s debts (see section 37A),

(ii) the outlays and remuneration of the interim trustee and of the trustee,”.

(6) After section 37, insert—

“37A Interest

(1) This section applies for the purpose of determining the amount of interest payable on the debtor’s debts in relation to a recall of an award of sequestration.

(2) Interest, between the date of sequestration and the date of payment of the debt, is payable at the rate specified in section 129(10), unless subsection (3) applies.

(3) This subsection applies if the whole of the debt is paid in full within 6 months after the date of the award of sequestration, in which case interest is not payable on the debt.

(4) For the avoidance of doubt, if only part of the debt is paid within 6 months after the date of the award of sequestration, interest is payable on the whole of the debt (including any part of the debt already paid since the award) in accordance with subsection (2).”.

Commencement Information

I1 S. 5 not in force at Royal Assent, see s. 22(2)