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

Insolvency practitioners are required in terms of regulation 12(1)(b) of the Insolvency Practitioners Regulations 1990, (as amended), to ensure there is in force in relation to their bond of caution a specific penalty in respect of their acting in particular bankruptcy proceedings.

Practitioners should note when they have obtained a specific penalty as interim trustee and they are subsequently appointed as trustee in that bankruptcy it is unnecessary for them to obtain a further specific penalty in respect of that subsequent appointment under regulation 13 of the Insolvency Practitioners Regulations 1990 (as amended).

However, a specific penalty obtained by a trustee acting under a trust deed is not acceptable in a subsequently awarded bankruptcy. They will have to ensure a separate specific penalty in relation to their actions in the bankruptcy is in force.

The foregoing is without prejudice to the duty of a practitioner to obtain a further specific penalty in a higher sum, in terms of Regulation 12(1)(c) of the Insolvency Practitioners Regulations 1990, (as amended), should the value of the assets under administration justify an increase in the specific sum.