Personal Insolvency Act 2012

Documents to be given to creditors and the Insolvency Service when summoning a creditors’ meeting.

107.— (1) The documents referred to in section 106 (2)(b) are—

(a) a completed statement of the debtor’s financial affairs, showing the debtor’s position of insolvency, in the form of the Prescribed Financial Statement;

(b) the terms of the proposal for a Personal Insolvency Arrangement;

(c) statements by the personal insolvency practitioner to the effect that:

(i) he or she has been instructed by the debtor to act as personal insolvency practitioner in connection with the Personal Insolvency Arrangement procedure, he or she has consented to so act and that he or she is a person entitled to act as a personal insolvency practitioner;

(ii) he or she has advised the debtor in accordance with section 52 of the debtor’s options for managing the debtor’s financial difficulties;

(iii) he or she is not aware of any reasonable grounds to believe that the information contained in the debtor’s Prescribed Financial Statement is other than complete and accurate;

(iv) he or she is of the opinion that the debtor satisfies the eligibility criteria for the proposal of a Personal Insolvency Arrangement specified in section 91 ;

(d) a report of the personal insolvency practitioner—

(i) describing the outcome for creditors, and having regard to the financial circumstances of the debtor whether or not the proposed Personal Insolvency Arrangement represents a fair outcome for the creditors, and indicating, where relevant, how the financial outcome for creditors (whether individually or as a member of a class of creditors) under the terms of the proposal is likely to be better than the estimated financial outcome for such creditors if the debtor were to be adjudicated a bankrupt (having regard to, amongst other things, the estimated costs of the bankruptcy process); and

(ii) indicating whether or not he or she considers that the debtor is reasonably likely to be able to comply with the terms of the proposed Personal Insolvency Arrangement.

(2) Where a debtor’s financial position has materially changed in the period between the completion by him or her of a Prescribed Financial Statement under section 50 and the giving of notice of a creditors’ meeting pursuant to section 106 (2)—

(a) the debtor shall inform the personal insolvency practitioner of that fact and of the nature of such change, and

(b) the personal insolvency practitioner shall, if he or she considers that the change necessitates the completion of a new Prescribed Financial Statement, assist the debtor in completing such a new statement, and where those circumstances arise the reference in this section to the Prescribed Financial Statement shall be construed as references to the new Prescribed Financial Statement.

(3) Where a new Prescribed Financial Statement is completed pursuant to subsection (2), the personal insolvency practitioner shall furnish a copy of that Statement to the Insolvency Service.