The Debt Arrangement Scheme (Scotland) Regulations 2004

Effect on a creditor

35.—(1) Where a debt payment programme is approved–

(a)the approval shall have the effect of a recall at the time specified in regulation 28(2) of any arrestment of the debtor’s income or property, and the DAS administrator shall send notice of recall in form 7 to each employer or party with possession of funds or property arrested as the case may be;

(b)no body or person shall give credit to the debtor, other than–

(i)a social fund award repayable under section 139 (awards of social fund officers) of the Social Security Contributions and Benefits Act 1992(1);

(ii)credit approved by a variation under regulation 39;

(iii)further credit given as part of a cyclical loan arrangement in operation at the date of approval where the payment by the debtor does not vary by reason of that credit being given, for example a revolving credit agreement or a current account mortgage;

(iv)subject to paragraph (2), trade credit incurred by the debtor in the ordinary course of a business;

(v)subject to paragraph (2), credit for emergency repairs as specified in regulation 30(5); and

(vi)subject to paragraph (2), credit for reasonable funeral expenses in respect of an immediate family member;

(c)a creditor shall not attempt to persuade the debtor to withdraw from the programme, or to make additional payments in respect of a debt included in the programme; and

(d)a creditor shall–

(i)on request by a money adviser to the debtor, provide a statement of all liabilities of the debtor; and

(ii)notify a money adviser of any liability where the creditor has security against a co obligant of the debtor.

(2) The debtor shall when applying for, or before obtaining, credit under paragraph (1)(b)(iv) to (vi) give notice in form 5 of approval of the debt payment programme to any person who may give such credit.

(3) Where a creditor gives credit to a debtor in an approved debt payment programme other than credit as specified in paragraph (1)(b), it shall not be competent to–

(a)serve a charge for payment in respect of;

(b)commence any diligence to enforce payment of; or

(c)found on in presenting, or concurring in the presentation of, a petition for the sequestration of the debtor’s estate,

the debt due to the creditor, as long as the programme is approved.

(4) There is to be disregarded, for the purpose of the exercise by a creditor of any rights to enforce a debt (or remedies to like effect) any period during which a debt is subject to the restriction under paragraph (3).

(5) In section 4 (effect of debt payment programmes) of the Act–

(a)in subsection (2)–

(i)after “(b)”, insert “other than under subsection (2A),”; and

(ii)after paragraph (b), insert–

“(c)to commit to prison under section 4 of the Civil Imprisonment (Scotland) Act 1882(2), other than for the purposes of section 40 of the Child Support Act 1991(3), respect of,”; and

(b)after subsection (2), insert–

“(2A) It is competent to–

(a)auction an attached article where–

(i)notice has been given to the debtor under section 27(4) below; or

(ii)an article has been removed, or notice of removal has been given, under section 53 below;

(b)implement a decree of furthcoming;

(c)implement a decree or order for sale of a ship (or a share of it) or cargo; and

(d)sell the effects of a debtor to satisfy a decree obtained in an action for sequestration for rent due by the debtor.”.