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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.

8. Debtor contributions

This section refers to Part 6 of the Act, sections 89 to 97.

Section 85 of the Act states the income of a debtor, other than income arising from the estate which is vested in the trustee, belongs to the debtor. However, section 90(1) of the Act states the Accountant must make a Debtor Contribution Order (DCO) following the award of a bankruptcy.

The Accountant must make an order fixing a DCO for all bankruptcy cases of a living debtor for a period of 48 months, or the equivalent weekly period, from the date of the first payment or deemed first payment. The DCO must not take effect before the expiry of 14 days from the date of the notification of the order.

The Accountant will use the Common Financial Tool (CFT) to assess the amount payable under a Debtor Contribution Order (DCO) and will consider if:

  • all the debtor’s income has been taken into account
  • the debtor’s relevant obligations have been considered

The DCO must be made for the full amount of any surplus income.

When there is no available surplus income, or the income is from benefits only, the DCO will be made at zero and the Accountant will determine a deemed first payment date.

Further information regarding the assessment of a contribution should be obtained from the Notes for Guidance- Common Financial Tool.

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