Personal Insolvency Act 2012

Debt Settlement Arrangement: Documents to be given to creditors and the Insolvency Service when calling a creditors’ meeting.

71.— (1) The documents referred to in section 70 (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) a document containing the terms of the proposal for a Debt Settlement Arrangement;

(c) a statement 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 Debt Settlement 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 not complete and accurate, and

(iv) he or she is of the opinion that the debtor satisfies the eligibility criteria for the proposal of a Debt Settlement Arrangement specified in section 57 ;

(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 Debt Settlement Arrangement represents a fair outcome for the creditors, and indicating, where relevant, how that 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 is of the opinion that the debtor is reasonably likely to be able to comply with the terms of the proposed Debt Settlement 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 sending of the notice under section 70 (2)—

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

(b) the personal insolvency practitioner shall, if he or she considers that the change merits the completion of a new Prescribed Financial Statement, assist the debtor in completing such a new Statement, which shall accompany the notice under section 70 (2).