beta This is a new service. Your feedback will help us to improve it.

Notes for Guidance - Bankruptcy (Scotland) Act 2016 (as amended)

This guidance describes the general functions of Accountant in Bankruptcy, interim trustees, trustees and commissioners in relation to their responsibilities regarding bankruptcies which started on or after 30 November 2016.

12.2 Adjudication of claims

A trustee should adjudicate on claims:

  • at the commencement of every meeting (other than the statutory meeting)
  • when funds are available for payment of a dividend in respect of an accounting period

The trustee must record their decision on each claim detailing:

  • the amount accepted
  • the category of debt and the value of any security
  • any reasons for rejection

12.2.1 Entitlement to vote

A claim should be submitted to the trustee at, or before, the meeting. When the creditor submitted a claim at the statutory meeting they are entitled to consider the original claim to be re-submitted for the purposes of any other meeting. Alternatively, the creditor may submit an amended claim.

The trustee must accept or reject the claim of each creditor.

12.2.2 Entitlement to a dividend

For the purpose of receiving a dividend a creditor must submit a claim before the expiry of 120 days from the date on which the trustee gives notice inviting a claim.

If a claim is submitted after the 120 days the trustee may adjudicate on the claim only if they deem there were exceptional circumstances which prevented the claim from being submitted within the statutory time period. If the creditor has not provided a reason for not being able to submit their claim within the 120 period the trustee should contact the creditor to obtain the reason, before they decide if the claim can be considered.

When the trustee does not consider the circumstances justify the claim being considered they should provide the creditor with the reasons, in writing. There is no right of review or appeal, against this decision,  however, the creditor may make an application to the sheriff under section 50(7) of the Act, to request a direction be made to the trustee to adjudicate on their claim.

If the trustee decides the circumstances for not submitting the claim within the required 120 days were exceptional, they must adjudicate on the claim. The trustee should not make any reference in their adjudication decision notes and letters, to the fact the claim was received out-with the 120 day period. This is not relevant to the adjudication decision which should be based only on the evidence provided in support of the claim.

Back to top