PART 8REVOCATION OF DEBT PAYMENT PROGRAMMES

Revocation on sequestration41

Approval of a debt payment programme shall be revoked by the DAS administrator on an award of sequestration under a petition by a debtor for the sequestration of the debtor’s estate.

Application for revocation42

1

An application to the DAS administrator for revocation of the approval of a debt payment programme, shall only be made by–

a

a money adviser–

i

on behalf of a debtor; or

ii

in exercise of a function under these Regulations; or

b

a creditor taking part in the programme.

2

An application under paragraph (1) shall be in form 10.

Grounds for revocation43

Approval of a debt payment programme may be revoked by the DAS administrator on application under regulation 42 where a debtor–

a

without good cause, does not have a money adviser;

b

fails without reasonable cause to satisfy a condition under regulations 29 or 30;

c

makes a statement in an application under these Regulations which the debtor knows to be untrue; or

d

a payment to be paid under the programme becomes due, and there remains unpaid a sum, due in respect of previous payments so due, of not less than the aggregate of two such payments.

Determination of a revocation44

1

The DAS administrator in determining whether to revoke an approval of a debt payment programme shall have regard to–

a

any statement made by, or on behalf of a debtor;

b

the nature of any failure, or untrue statement;

c

any factor that tends to indicate whether or not the programme will be successful; and

2

The DAS administrator in determining whether to revoke an approval of a debt payment programme may have regard to any other factor that the administrator considers appropriate in all the circumstances.

Notification of revocation45

1

The DAS administrator shall give written notice to the money adviser for a debt payment programme of a revocation of the programme.

2

The DAS administrator shall specify the reason for the revocation.

3

Subject to paragraph (4), the money adviser shall intimate in writing the revocation by the DAS administrator, and the reasons–

a

to the debtor;

b

to each creditor known to the adviser in form 11;

c

the payments distributor;

d

where there is a payment instruction under regulation 33, to the employer.

4

Where there is no money adviser, the DAS administrator shall intimate the revocation to–

a

the persons specified in paragraph (3)(a) to (d); and

b

in form 11, to each creditor taking part in the programme.

Apparent insolvency46

In section 7(1) (meaning of apparent insolvency) of the 1985 Act21, at the end of paragraph–

a

(c)(v), omit “or”; and

b

(c)(vi), insert–

; or

vii

a debt payment programme under the Debt Arrangement and Attachment (Scotland) Act 200222 is revoked, where any debt being paid under the programme is constituted by a decree or document of debt as defined in section 10 (attachment) of that Act,