Personal Insolvency Act 2012

Coming into effect of Debt Settlement Arrangement.

78.— (1) Where—

(a) no objection is lodged by a creditor with the appropriate court within 14 days of the giving of the notice referred to in section 75 , or

(b) an objection is lodged with the appropriate court and the matter is determined by the court on the basis that the objection should not be allowed,

the appropriate court shall proceed to consider, in accordance with this section, whether to approve the coming into effect of the Debt Settlement Arrangement.

(2) For the purposes of its consideration under subsection (1), the appropriate court shall consider the copy of the Debt Settlement Arrangement furnished to it under section 76 (1) and, subject to subsection (3)

(a) shall approve the coming into effect of the Arrangement, if satisfied that the—

(i) eligibility criteria specified in section 57 have been satisfied,

(ii) mandatory requirements referred to in section 65 (2) have been complied with,

(iii) Debt Settlement Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or a secured debt or otherwise affect such a debt, and

(iv) requisite percentage of creditors referred to in section 73 (6) has approved the proposal for a Debt Settlement Arrangement,

and

(b) if not so satisfied, shall refuse to approve the coming into effect of the Debt Settlement Arrangement.

(3) The appropriate court, where it requires further information or evidence for the purpose of its arriving at a decision under subsection (2), may hold a hearing, which hearing shall be on notice to the Insolvency Service and the personal insolvency practitioner concerned.

(4) A hearing referred to in subsection (3), unless the appropriate court considers it appropriate to hold it in public, shall be held otherwise than in public.

(5) For the purposes of subsection (2), the court may accept—

(a) a certificate issued by the Insolvency Service certifying that the eligibility criteria specified in section 57 have been satisfied as evidence that such eligibility criteria have been satisfied, and

(b) the certificate issued by the personal insolvency practitioner concerned pursuant to section 75 (1) as evidence that the requisite percentage of creditors referred to in section 73 (6) has approved the proposal for a Debt Settlement Arrangement.

(6) The registrar of the appropriate court shall notify the Insolvency Service and the personal insolvency practitioner concerned where the court—

(a) approves or refuses to approve the coming into effect of the Debt Settlement Arrangement under this section, or

(b) decides to hold a hearing referred to in subsection (3).

(7) On receipt of a notification under subsection (6) of the approval of the coming into effect of the Debt Settlement Arrangement, the Insolvency Service shall register the Debt Settlement Arrangement in the Register of Debt Settlement Arrangements.

(8) The Debt Settlement Arrangement shall come into effect upon being registered in the Register of Debt Settlement Arrangements.