Bankruptcy (Scotland) Act 2016

[F1184CEarly discharge in extenuating circumstances: procedure where creditors objectS

(1)This section applies where—

(a)the trustee has, in accordance with section 184B(2) and (3), sought the agreement of the creditors to the early discharge of the debtor from a trust deed, and

(b)at the end of the period of 21 days beginning with the day on which notices are sent under section 184B(2), the trustee has received notification in writing from a majority in number, or no fewer than ⅓ in value, of the creditors that they object to the proposal to discharge the debtor.

(2)The trustee must apply to AiB for a review of the proposal that the debtor be discharged.

(3)An application for a review under subsection (2) must—

(a)include details of the trustee’s consideration under section 184B(1),

(b)include details of the objections received from the creditors, and

(c)be made no later than 14 days beginning with the end of the period of 21 days referred to in subsection (1)(b).

(4)Where it receives an application under subsection (2), AiB must—

(a)determine whether it is satisfied that, taking into account all the circumstances, it is fair and reasonable for the debtor to be discharged from the trust deed, and

(b)notify the trustee of the outcome of that review.

(5)The trustee must, no later than 7 days after receiving a notification under subsection (4)(b), notify the outcome of AiB’s review to—

(a)the debtor, and

(b)each creditor to whom notice was sent under section 184B(2).

(6)Where, after conducting a review under subsection (4), AiB determines that the debtor should be discharged from the trust deed—

(a)the trustee must apply to AiB for the discharge of the debtor, and

(b)on receipt of such an application, AiB must register it in the register of insolvencies.

(7)Where AiB registers an application under subsection (6)—

(a)the debtor falls to be discharged from all debts and obligations—

(i)in terms of the protected trust deed, or

(ii)for which the debtor was liable as at the date that deed was granted,

(b)the date of discharge is the date on which the application is so registered, and

(c)AiB must without delay notify the trustee of—

(i)the fact of registration, and

(ii)the date of the debtor’s discharge.

(8)The trustee must, within 7 days after receipt of the notification mentioned in subsection (7)(c), notify the debtor and every creditor known to the trustee of the information set out in that notification.

(9)Section 184(6) applies to the notification of the debtor’s discharge under subsection (7) in the same way as it applies to a letter of discharge under section 184.

(10)Where, after conducting a review under subsection (4), AiB determines that the debtor should not be discharged from the trust deed, AiB must issue a direction to the trustee.]