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

After the Accountant has made a DCO for a period of 48 months the trustee may determine a shorter, or longer, period of payment.

A shorter period may be considered if the contribution payments during the shorter period and/or any other estate realised by the trustee, e.g. heritable or moveable assets will be sufficient to pay in full:

• the outlays and remuneration of any interim trustee and the trustee
• petitioning creditor expenses
• all preferred debts
• all ordinary debts
• statutory interest on all preferred and ordinary debts

A longer period may be considered if:

• the debtor has failed to pay the full 48 monthly, or equivalent weekly, contributions
• the debtor and the trustee agree to a longer period

It is not expected that a trustee would consider extending the period of the DCO until a period of 42 months after the original DCO was made.

8.4.1 Actions of the trustee

The trustee should upload to BASYS:

• notification of the variation to the length of the DCO
• evidence to support the change of length, for example:
  • copy of Estimated Outcome Statement to show sufficient monies received to pay creditors in full
  • copy of Scheme of Division or Final Account to show all creditors have been paid
  • account cards showing record of payments
  • sequestration bank statements showing record of payments
• a copy of the Debtor Contribution Order Variation Form

When the Accountant considers that the variation was not appropriate, or the information provided is insufficient, or incorrect, a notification will be issued providing the reasons and the steps to be taken to remedy the situation.

8.4.2 Variation of payment period and intervals – review and appeal

An application can be made by:

• the debtor
• any creditor
• any interested person

to The Accountant’s independent review team for a review of a decision made by the trustee to vary the payment period or intervals.

An application must be received before the expiry of 14 days from the date the decision was made by the trustee.

When an application is received the order is suspended until the determination of the review.

The team must take into consideration any submissions made by any interested person before the expiry of 21 days from the date the application.

The outcome of the review to confirm, revoke or amend the decision, determination or requirement must be made before the expiry of 28 days from the date the application for review was made.

Any person entitled to make representation may appeal the review decision to the sheriff before the expiry of 14 days from the date the review decision, determination or requirement was made.

The sheriff’s decision is final.