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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.

18.4 Arbitration and compromise

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.

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