Personal Insolvency Act 2012

Debt Settlement Arrangement: Eligibility criteria.

57.— (1) Subject to the provisions of this section and this Chapter, a debtor shall not be eligible to make a proposal for a DebtSettlement Arrangement unless he or she satisfies the following criteria—

(a) that the debtor—

(i) is domiciled in the State, or

(ii) within one year before the date of the application for a protective certificate has ordinarily—

(I) resided in the State, or

(II) had a place of business in the State;

(b) that the debtor is insolvent;

(c) that the debtor has completed a Prescribed Financial Statement and has made a statutory declaration confirming that the statement is a complete and accurate statement of the debtor’s assets, liabilities, income and expenditure;

(d) that the personal insolvency practitioner has completed a statement under section 54 in respect of the debtor;

(e) that the debtor is not—

(i) an undischarged bankrupt,

(ii) a discharged bankrupt subject to a bankruptcy payment order,

(iii) a person who is a specified debtor as respects a Debt Relief Notice which is in effect,

(iv) a person who, as a debtor, is subject to a Personal Insolvency Arrangement which is in effect, or

(v) a person who, as a debtor, is subject to an arrangement under the control of the court under Part IV of the Bankruptcy Act 1988 ;

(f) that the debtor has not—

(i) been the subject of a protective certificate issued under section 61 less than 12 months prior to the date of the application for a protective certificate,

(ii) had his or her debts discharged pursuant to section 46 (1) less than 3 years prior to the date of the application for a protective certificate,

(iii) had his or her debts discharged pursuant to a Personal Insolvency Arrangement less than 5 years prior to the date of the application for a protective certificate, or

(iv) been discharged from bankruptcy less than 5 years prior to the date of the application for a protective certificate.

(2) The criterion specified in subsection (1)(f) shall not apply where the debtor has, on notice to the Insolvency Service, made an application to the appropriate court and the court has made an order stating that it is satisfied that the current insolvency of the debtor arises by reason of exceptional circumstances or other factors which are substantially outside the control of the debtor and that it would be just to permit the debtor to make a proposal for a Debt Settlement Arrangement.

(3) A debtor shall not be eligible to make a proposal for a Debt Settlement Arrangement where 25 per cent or more of his or her debts (other than excluded debts and secured debts) were incurred during the period of 6 months ending on the date on which an application is made under section 59 for a protective certificate.