Debt Arrangement and Attachment (Scotland) Act 2002
| Jurisdiction | Scotland |
| Citation | 2002 asp 17 |
| Year | 2002 |
Debt Arrangement and Attachment (Scotland)Act 2002
asp 17
The Bill for this Act of the Scottish Parliament was passed by the Parliament on 13th November 2002 and received Royal Assent on17th December 2002
An Act of the Scottish Parliament to provide a scheme under which individuals may arrange for their debts to be paid under payment programmes; to create a new diligence in relation to corporeal moveable property owned by a debtor; to make special provision for the use of that diligence in relation to property kept in dwellinghouses; to abolish poindings and warrant sales; and for connected purposes.
Part 1
The debt arrangement scheme
1 Debt arrangement scheme
This Part of this Act constitutes a scheme (to be known as the ‘debt arrangement scheme’) under which individuals may arrange for their debts to be paid under debt payment programmes.
2 Debt payment programmes
(1) A debt payment programme is a programme which provides for the payment of money owed by a debtor.
(2) The Scottish Ministers may, on an application by a debtor, approve any debt payment programme set out in the application.
(3) Such an application shall be signed by the debtor and shall—
(a) specify, to the best of the debtor's knowledge and belief, in relation to each debt which the debtor is proposing to be paid under the debt payment programme—
(i) the amount outstanding;
(ii) the creditor to whom the debt is due; and
(iii) the period for which the debt has been due;
(b) set out the arrangements under which those debts are, in accordance with the provisions of the programme, to be paid, in particular specifying—
(i) the amounts which the debtor proposes to pay under the programme;
(ii) the proposed regularity of those payments;
(iii) the manner in which those payments are to be made; and
(iv) the manner in which, and period over which, each of the debts included in the programme is to be paid;
(c) specify the name and address of the person (the ‘payments distributor’) who is to—
(i) receive payments from the debtor; and
(ii) pay, on behalf of the debtor, the debts included in the programme,
in accordance with the provisions of the programme; and
(d) contain such other information (including information relating to the debtor's financial circumstances), and be in such form, as may be prescribed.
(4) Such an application shall, subject to any contrary provision in regulations made under section 7(1) below, incorporate the consent, indicated in the prescribed form, of all the debtor's creditors.
(5) A person's name and address shall not be specified in an application for approval of a debt payment programme as a payments distributor unless that person has been approved by the Scottish Ministers as a person suitable to carry out the functions of a payments distributor.
3 Money advice
(1) A debtor is not entitled to make an application for the approval, or the variation, of a debt payment programme unless the debtor has obtained the advice of a money adviser in relation to—
(a) the debtor's financial circumstances;
(b) the effect of the proposed programme or, as the case may be, the proposed variation of the programme; and
(c) the preparation of the application.
(2) Such an application shall—
(a) contain a signed declaration by the money adviser who provided the advice referred to in subsection (1) above that such advice has been given; and
(b) specify the name and address of the money adviser.
4 Effect of debt payment programmes
(1) Where a debt payment programme has been approved or varied, the debts specified in the application for the approval or, as the case may be, the variation shall be paid in accordance with the programme.
(2) It is not competent—
(a) to serve a charge for payment in respect of; or
(b) to commence or execute any diligence to enforce payment of,
any debt owed by a debtor who has debts which are being paid under an approved debt payment programme.
(3) A creditor is not entitled to found on any debt owed by such a debtor in presenting, or concurring in the presentation of, a petition for the sequestration of the debtor's estate.
(4) There is to be disregarded, for the purposes of the exercise by a creditor of any rights to enforce a debt or remedies to like effect, any period during which the debtor's debts were subject to an approved debt payment programme.
(5) The debts referred to in subsections (2) to (4) above are restricted to—
(a) those to which the debtor's debt payment programme relates; and
(b) any other debts owed to creditors who have been given notice, in the prescribed form, of the approval of the debt payment programme.
5 Variation of debt payment programmes
(1) The Scottish Ministers may, on an application by the debtor or by any creditor, approve the variation of a debt payment programme.
(2) The Scottish Ministers may not consider an application for approval of a variation under subsection (1) above unless—
(a) where the application is made by the debtor, a copy of the application has been given to each creditor who is owed a debt which is being paid under the debt payment programme; or
(b) where the application is made by a creditor, a copy of the application has been given to the debtor and to each other creditor who is owed such a debt.
(3) Such an application may seek the variation of any condition which is attached to the approval of the programme or, as the case may be, a previous variation of the programme.
(4) An application for the variation of a debt payment programme shall—
(a) contain such information, and be in such form, as may be prescribed; and
(b) be signed by the debtor or, as the case may be, the creditor.
6 Deduction from earnings
(1) Where an approved debt payment programme requires sums to be paid to the payments distributor by way of deduction of the debtor's earnings from employment, the debtor shall provide an instruction, in the prescribed form, to the person by whom the debtor is employed to make—
(a) deductions from the debtor's earnings; and
(b) payments of the amounts deducted to the payments distributor,
in accordance with the provisions of the debt payment programme.
(2) It is the duty of the employer to comply with any instruction so provided.
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