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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.

Appendix R - List of offences

Section 218 of Act lists general offences which may be committed by the debtor. These are in summary:

  • making a false statement on assets or business or financial affairs (sections 218(1)&(2))
  • destruction, damage, concealment or removal of estate from Scotland or any document (sections 218(3)&(4))
  • failure to return to Scotland following a court order (section 218(5))
  • falsification of a document and failure to report a falsification (sections 218(6,7,8))
  • gratuitous alienation or unfair preference by a person who is absolutely insolvent (sections 218(9)&(10))
  • pledge or disposal of property obtained on credit otherwise than in course of trade or business (sections 218(11)&(12))
  • obtaining credit to the extent of £2000 or more without giving relevant information (section 218(13)(a))
  • obtaining credit of any amount, where, at the time of obtaining credit the debtor had debts amounting to £1000 or more, without giving relevant information (section 218(13)(b))

Throughout the act there are listed various statutory offences which may be committed by the debtor:

  • failure to inform the court of concurrent proceedings for bankruptcy or an analogous remedy (section 17(6))
  • failure to deliver a statement of assets and liabilities to the interim trustee or to omit or misstate a material fact (section 41(3))
  • failure to follow a direction or requirement of, or obstruction of, an interim trustee (section 40(1))
  • failure to notify the trustee of any assets acquired on a relevant date or of any substantial change in financial circumstances (section 87(1))
  • failure to attend for examination (sections 118(7)&(8) and 119(8))
  • failure to inform of possible acquirenda (sections 28(2)&(3))
  • failure to comply with an order of the sheriff on co-operation a trustee (section 215(4))

The following are offences not covered by the Act but are nevertheless reportable:

  • common law fraud 
  • common law theft
  • acting as a director or to promote a firm manage a company without the leave of the court whilst an undischarged bankruptcy (The Company Director Disqualification Act 1986, section 11(1))
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