UK professional associations debate the Bankruptcy & Diligence Bill with Scottish Executive
R3, the Association of Business Recovery Professionals, the Institute of Chartered Accountants of Scotland (ICAS) and the Insolvency Practitioners Association (IPA) met with Allan Wilson, the Deputy Minister for Enterprise and Lifelong Learning, and discussed their concerns over underlying problems associated with the Bankruptcy & Diligence (Scotland) Bill and the proposed changes to Protected Trust Deeds (PTDs).
Numerous concerns have been expressed that the success of the Bill and the desired aim of an integrated debt relief system in Scotland is dependent on apparent insolvency, constitution of which is a legal requirement before a sequestration petition can be presented, but that significant proposals on apparent insolvency were missing from the Bill. Everyone agrees that the current definition needs to be widened to accommodate those debtors currently unable to access sequestration and those debtors for whom sequestration would be more appropriate but currently PTDs are their only solution.
It was agreed that the associations (R3, ICAS and IPA) would follow up their suggested alternative solutions to a number of the areas in the Bankruptcy and Diligence (Scotland) Bill and associated PTD consultation with detailed proposals on:
How to widen access to sequestration by altering apparent insolvency, what that wider access would be like, what its implications would be and why that could be a solution
Scoping an alternative high-level regulatory function for the Accountant in Bankruptcy in relation to trust deeds rather than the micro-management role currently envisaged
Work up a comparative model for PTDs versus sequestration on a case by case basis as an alternative to a minimum dividend threshold
Eileen Maclean, R3 Scotland Chair said: ?We are delighted that the Deputy Minister and members of the Scottish Executive are willing to explore our ideas and alternative solutions and we are happy to present further detailed proposals for consideration.?
Bruce Cartwright Chairman of ICAS?s Insolvency Committee, added: ?This has been an ideal opportunity to influence debate and ensure that our ideas are considered as viable alternatives. We think our suggestions produce a more dignified solution for debtors and a better outcome for creditors generally and those must be in the public interest.?
Eileen added: ?Our members will support any changes that protect the public interest and therefore we also welcome the Scottish Executive?s intentions to make the terms of SIP3A statutory.?
A further meeting of the R3 and ICAS Working Party on the Bill/PTD consultation to consider the further submissions for the Deputy Minister is scheduled for 27 April.
Business Credit Management UK
R3, the Association of Business Recovery Professionals, the Institute of Chartered Accountants of Scotland (ICAS) and the Insolvency Practitioners Association (IPA) met with Allan Wilson, the Deputy Minister for Enterprise and Lifelong Learning, and discussed their concerns over underlying problems associated with the Bankruptcy & Diligence (Scotland) Bill and the proposed changes to Protected Trust Deeds (PTDs).
Numerous concerns have been expressed that the success of the Bill and the desired aim of an integrated debt relief system in Scotland is dependent on apparent insolvency, constitution of which is a legal requirement before a sequestration petition can be presented, but that significant proposals on apparent insolvency were missing from the Bill. Everyone agrees that the current definition needs to be widened to accommodate those debtors currently unable to access sequestration and those debtors for whom sequestration would be more appropriate but currently PTDs are their only solution.
It was agreed that the associations (R3, ICAS and IPA) would follow up their suggested alternative solutions to a number of the areas in the Bankruptcy and Diligence (Scotland) Bill and associated PTD consultation with detailed proposals on:
How to widen access to sequestration by altering apparent insolvency, what that wider access would be like, what its implications would be and why that could be a solution
Scoping an alternative high-level regulatory function for the Accountant in Bankruptcy in relation to trust deeds rather than the micro-management role currently envisaged
Work up a comparative model for PTDs versus sequestration on a case by case basis as an alternative to a minimum dividend threshold
Eileen Maclean, R3 Scotland Chair said: ?We are delighted that the Deputy Minister and members of the Scottish Executive are willing to explore our ideas and alternative solutions and we are happy to present further detailed proposals for consideration.?
Bruce Cartwright Chairman of ICAS?s Insolvency Committee, added: ?This has been an ideal opportunity to influence debate and ensure that our ideas are considered as viable alternatives. We think our suggestions produce a more dignified solution for debtors and a better outcome for creditors generally and those must be in the public interest.?
Eileen added: ?Our members will support any changes that protect the public interest and therefore we also welcome the Scottish Executive?s intentions to make the terms of SIP3A statutory.?
A further meeting of the R3 and ICAS Working Party on the Bill/PTD consultation to consider the further submissions for the Deputy Minister is scheduled for 27 April.
Business Credit Management UK
