Home Owner and Debtor Protection (Scotland) Act 2010. Part 2 - Sequestration and Trust Deeds. MATRICS would like to thank both the Scottish Government and the Accountant in Bankruptcy for their continued support and funding. Introduction.
Part 2 - Sequestration and Trust Deeds
MATRICS would like to thank both the Scottish Government and the Accountant in Bankruptcy for their continued support and funding
The Home Owner and Debtor Protection (Scotland) Act 2010
Part 2─Sequestration and Trust Deeds
COMING INTO FORCE:
15TH NOVEMBER 2010
Part 2 of the above Act introduces a number of changes to personal insolvency
Sections covered in seminar:
Section 9─certificate for sequestration
Section 10─trust deeds
Section 11─power in relation to debtor’s family home
Section 12─abolition of certain requirements to advertise in the Edinburgh Gazette
To ensure that attendees are aware of :
Certificate for sequestration
And new route-
Creditor concurrence route
“Certificate for sequestration” route
(*Agencies offering a casework service)
DECLARATION AND SIGNATURE OF DEBTOR
I _______________________________(debtor’s name,) confirm that I have provided the authorised person with correct and complete information about my financial circumstances..
I understand that this certificate is valid for thirty days including the date signed by the authorised person.
(signature of debtor)
Also known as “Practical insolvency”
Client’s contractual payments to all unsecured debts are £350 per month. Money adviser does a financial statement using information provided by the debtor: it shows debtors only has £250 per month disposable income. Debtor, therefore, cannot afford to pay debts as they become due. This does not mean, however, they should, be sequestrated!
The CFS can be accessed at: http://www.cfs.moneyadvicetrust.org/
Should client have been sequestrated?
Still be able to do sequestrations using:
Will have to signpost “certificate” clients to agencies who have authorised person
New Debtors Application Pack to be issued to be used from 15th November 2010 in line with the new regulations.
Part of AIB’s business plan:
Note-All through consultation with stakeholders
There may be a criminal offence if clients:
Do not disclose all information
Deliberately make a false statement
The fee is not refundable
A lot already in the adviser domain!
Policies-endowment /insurance etc
Date credit obtained
Credit agreements (liability)
Home owner/tenant (AIB land search)
Without checking above information-how can make an informed decision on client applying for sequestration?
The £100 fee is not refundable
Power in relation to debtor’s family home
Abolition of certain requirements to advertise in Edinburgh Gazette
(Raised from previous value of £1,000)