Draft Regulations laid before the Scottish Parliament under section 225 of the Bankruptcy (Scotland) Act 2016, for approval by resolution of the Scottish Parliament.
2021 No.
The Bankruptcy (Miscellaneous Amendments) (Scotland) Regulations 2021
Made
Coming into force
The Scottish Ministers make the following Regulations in exercise of the powers conferred by sections 2(2)(b)(ii), 2(5), 9(4), 16(1)(i), 19(1), 46(2)(a), 87(8), 94(7)(a), 113(5), 116(2), 119(6)(a), 137(2), 140(2), 141(2)(a) and (c), 142(2) and (5), 205(1), 224, 225(2) and 227 of the Bankruptcy (Scotland) Act 20161, section 10 of the Coronavirus (Scotland) (No. 2) Act 20202, and all other powers enabling them to do so.
In accordance with section 225(4)(a) of the Bankruptcy (Scotland) Act 2016, a draft of this instrument has been laid before and approved by resolution of the Scottish Parliament3.
PART 1
General provisions
Citation and commencement1
These Regulations may be cited as the Bankruptcy (Miscellaneous Amendments) (Scotland) Regulations 2021 and come into force on 29 March 2021.
Interpretation2
Expiry of measures in the 2020 Act3
The following provisions of schedule 1 of the 2020 Act expire on 29 March 2021—
a
paragraph 9 (financial criteria for minimal asset process),
b
paragraph 11 (deadline for sending proposals for debtor’s contribution),
c
paragraph 13 (electronic signature of forms),
d
paragraph 14 (fees for debtor applications).
PART 2
Amendment of the 2016 Act
Financial criteria for minimal asset process4
1
Section 2 of the 2016 Act (sequestration of estate of living debtor) is amended in accordance with paragraphs (2) and (3).
2
In subsection (2)(b)(ii), for “£17,000” substitute “£25,000”.
3
After subsection (2) insert—
2A
For the purposes of subsection (2)(b), the amount of a loan made to the debtor is not to be regarded as a debt where the loan was made by virtue of regulations to which section 73B (regulations relating to student loans) of the Education (Scotland) Act 19806 applies.
4
Paragraphs (2) and (3) apply in relation to a sequestration of a debtor’s estate only where the debtor application (within the meaning of the 2016 Act) was made on or after 29 March 2021.
Deadline for sending proposals for debtor’s contribution5
1
In section 90(2) of the 2016 Act (debtor contribution order: general), for “6” substitute “12”.
2
Paragraph (1) applies in relation to a sequestration of a debtor’s estate only where the date of award of sequestration is on or after 29 March 2021.
PART 3
Amendment of the 2016 Regulations
Electronic signature of forms6
1
Regulation 3 of the 2016 Regulations (forms) is amended as follows.
2
In paragraph (2), omit “either” and “or”,
3
After sub-paragraph (2)(b), insert—
; or
c
in any case, an electronic signature.
4
After paragraph (2), insert—
3
In paragraph (2), “electronic signature” (except where it relates to Form 9) is to be construed in accordance with section 7(2) of the Electronic Communications Act 20007 (electronic signatures and related certificates), but includes a version of an electronic signature which is reproduced on a paper document.
Forms
7
1
Form 18 (Debtor Application) in schedule 1 of the 2016 Regulations is amended as follows.
2
In section 3.1a, for “£17,000” substitute “£25,000”,
3
In undertaking 13 of the Statement of Undertakings, for “a further £110” substitute “the total Full Administration bankruptcy application fee”.
8
In Form 8 (Form of Refusal of Award of Sequestration) in schedule 1 of the 2016 Regulations, for “17,000” substitute “25,000”.
PART 4
Amendment of the 2018 Regulations
Fees for debtor applications9
1
The 2018 Regulations are amended as follows.
2
After regulation 7 (other fees), insert—
Exemption from bankruptcy application fees for debtors in receipt of certain benefits
7A
Despite item 22 in Part 2 of the table of fees, no fee is payable to AiB under that item for the determination of a debtor application—
a
in relation to a debtor who, at the date of making the application, is in receipt of one or more of the following payments—
i
universal credit under Part 1 of the Welfare Reform Act 20129,
ii
another income-related benefit within the meaning given by section 191 of the Social Security Administration Act 199210,
iii
jobseeker’s allowance under the Jobseekers Act 199511,
iv
state pension credit under the State Pension Credit Act 200212,
v
child tax credit under the Tax Credits Act 200213, or
vi
employment and support allowance under Part 1 of the Welfare Reform Act 200714,
b
in relation to a debtor who, at the date of making the application, is in receipt of working tax credit, provided that—
i
child tax credit is being paid to the debtor, or otherwise following a claim for child tax credit made jointly by members of a couple (as defined in section 3(5A) of the Tax Credits Act 200215) which includes the debtor, or
ii
there is a disability element or severe disability element (or both) to the tax credit received by the debtor,
and that the gross annual income taken into account for the calculation of the working tax credit is £18,000 or less, or
c
in relation to a debtor who, within the period of 3 months prior to the date of making the application, received financial or other assistance under the Welfare Funds (Scotland) Act 201516.
3
In Part 2 of the schedule (fees for other functions of the Accountant in Bankruptcy), column 2 of item 22 is amended as follows—
a
in paragraph (a), for “£90.00” substitute “£50.00”,
b
in paragraph (b), for “£200.00” substitute “£150.00”.
(This note is not part of the Regulations)