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

A trustee can refer any claim or question arising in the course of the bankruptcy to arbitration and reach a compromise with regard to any claim made in relation to the sequestrated estate.

These powers are exercisable only with the consent of:

• the commissioners
• the creditors by obtaining the votes of a majority in value of such creditors at a meeting of creditors called for the purpose
• the sheriff

If arbitration commences AiB may vary any time limit for carrying out a procedure under the Act.

Any outcome is binding on the creditors and debtor.