Personal Insolvency Act 2012

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Initiation of Debt Relief Notice process.

27.— (1) A debtor who wishes to become a specified debtor shall submit to an approved intermediary a written statement disclosing all of the debtor’s financial affairs, which statement shall include—

(a) such information as may be prescribed in relation to—

(i) his or her creditors,

(ii) his or her debts and other liabilities,

(iii) his or her assets, and

(iv) the efforts made by him or her to reach an alternative repayment arrangement with his or her creditors, and

(b) such other information as may be prescribed.

(2) Following receipt of the information referred to in subsection (1), the approved intermediary shall hold a meeting with the debtor and, at that meeting, provide, on the basis of the information, the debtor with the following information and advice—

(a) whether the debtor satisfies the criteria specified in section 26 (2),

(b) the general effect of making an application under section 29 , and the consequences, including any adverse consequences, for the debtor in the event of his or her becoming a specified debtor,

(c) the other option or options (if any) available to him or her for addressing his or her financial difficulties including, in particular, becoming party to a Debt Settlement Arrangement, Personal Insolvency Arrangement or bankruptcy, and the general effect of choosing one or more than one of those options,

(d) the fee (if any) that is prescribed for making an application under section 29 .

(3) Where the debtor, following the meeting referred to in subsection (2), wishes to apply for a Debt Relief Notice, he or she shall confirm that fact in writing to the approved intermediary.

(4) The debtor, as soon as practicable after he or she has made the confirmation referred to in subsection (3), shall provide information that fully discloses his or her financial affairs to the approved intermediary.

(5) The approved intermediary, on receipt of the information referred to in subsection (4), shall examine that information and, having regard to the obligation of the debtor under subsections (7) and (8), assist the debtor in completing a Prescribed Financial Statement.

(6) On completion of a Prescribed Financial Statement under subsection (5), the approved intermediary, if he or she is of the opinion that—

(a) the information contained in the debtor’s Prescribed Financial Statement is true and accurate, and

(b) the debtor satisfies the eligibility criteria specified in section 26 (2),

shall prepare a statement to that effect.

(7) A debtor who participates in the Debt Relief Notice process (including a debtor who becomes a specified debtor), is at all times under an obligation to act in good faith and to co-operate fully in the process.

(8) A person referred to in subsection (7), in his or her dealings with the approved intermediary concerned, shall—

(a) make full and honest disclosure to that approved intermediary of all of his or her assets, income and liabilities and of all other circumstances that are relevant to that process,

(b) comply with any reasonable request from the approved intermediary to provide assistance, documents and information, including any debt, tax, employment, business, social welfare or other financial records, necessary for the application of the process to the debtor’s case or the performance of the approved intermediary’s functions, and

(c) ensure that, to the best of his or her knowledge, the Prescribed Financial Statement completed under this section is true, accurate and complete.

(9) Where an approved intermediary resigns from the role of approved intermediary as respects a debtor, he or she shall notify the Insolvency Service of that fact, which notification shall be accompanied by a statement of the reasons for his or her resignation.

(10) Where, at any time during the Debt Relief Notice process after the debtor has made the confirmation referred to in subsection (3), the approved intermediary concerned (“original approved intermediary”)—

(a) dies,

(b) becomes incapable, through ill-health or otherwise, of performing the functions of an approved intermediary as respects the debtor,

(c) resigns from the role of approved intermediary as respects the debtor, or

(d) is no longer entitled to perform the functions of an approved intermediary under this Act,

the debtor shall, as soon as practicable after becoming aware of that fact, appoint another approved intermediary to act as his or her approved intermediary for the purposes of this Chapter.

(11) (a) Where paragraph (a), (b) or (c) of subsection (10) applies, the debtor concerned shall, as soon as practicable, inform the Insolvency Service of that fact.

(b) Where an approved intermediary has been appointed under subsection (10), the approved intermediary shall, as soon as practicable, inform the Insolvency Service and the creditors concerned of that fact.

(12) Where an approved intermediary is appointed under subsection (10)—

(a) that appointment shall not affect the validity of anything previously done under this Chapter by the original approved intermediary,

(b) a Debt Relief Notice that is in effect as regards the debtor shall continue to have effect, and

(c) references in this Act to an approved intermediary, in relation to the debtor concerned, shall be construed as including references to the approved intermediary so appointed.