Bankruptcy and Debt Advice (Scotland) Act 2014

2 Financial education for debtor

After section 43A of the 1985 Act, insert—

“43B Financial education

(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) apply, and

(b) undertaking the course would be appropriate for the debtor.

(2) The circumstances are—

(a) in the period of 5 years ending on the date on which the sequestration of the debtor’s estate was awarded—

(i) the debtor’s estate was sequestrated,

(ii) the debtor granted a protected trust deed,

(iii) an analogous remedy (within the meaning of section 10(7)) 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 (including in particular a programme approved in accordance with section 2 of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17)),

(b) the debtor is subject to, or under investigation with a view to an application being made for, a bankruptcy restrictions order,

(c) 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,

(d) the debtor agrees to undertake a financial education course.

(3) The trustee must decide whether to issue a notification under subsection (1)—

(a) before the end of the period of 6 months beginning with the date of award of sequestration, and

(b) in a case where section 54F applies, as soon as reasonably practicable after the trustee ascertains the whereabouts of the debtor or 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 education course specified by the trustee if, in the opinion of the trustee—

(a) the debtor is unable to participate in the course as a result of the debtor’s health (including by reason of disability or physical or mental illness), or

(b) the debtor has completed a financial education course in the period of 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,

(c) make provision for particular courses to be specified by a trustee where particular circumstances in subsection (2) apply.”.