Sequestration Flashcards
Acts which govern sequestration?
Bankruptcy (Scotland) Act 2016
Bankruptcy (Scotland)Regulations 2016
Act of Sederunt (Sheriff Court Bankruptcy Rules) 2016
How is sequestration of a living debtor done? On the petition of?
Qualified creditor(s) if apparently insolvent
Temporary administrator
Member state insolvency practitioner
Trustee
Monetary limit for raising a petition for sequestration?
£5,000
What act introduced the change to the monetary limit?
Coronavirus(Recovery and Reform)(Scotland) Act 2022
When must the debtor receive a daip prior to a petition for sequestration?
No less than 14 days before presentation
Sequestration of deceases debtor?
On executor
Qualified creditor or creditors
Temporary administrator
Member state insolvency practitioner
Trustee
What can’t be sequestrated?
Company registered under Companies Act 2006
Limited liability partnership
Time period for sequestration of a debtor other than a llp or deceased debtor?
Within 4 months
3 things that make debtor apparently insolvent?
Charge served with days specified in charge expiring without payment
Debtors estate sequestrated
Debtor grants a trust deed
Form used for stat demand and time period for debtor to reply?
Form 5 and 3 weeks
Form used for petition for sequestration?
Form 6.1-A
What is served when citing a debtor for a petition for sequestration? And what must also be done?
Citation in Form 6.3-A
Copy of petition for sequestration
Copy of warrant of citation
Certificate of citation in Form 6.3-B lodged with sheriff clerk no later than 2 days before debtor cited to appear.
Date appointed by sheriff for sequestration?
No fewer than 6 days and no more that 14 days after date of citation.
How many days does the sheriff have to determine debtor will pay seq debt?
Within 42 days and sheriff may continue petition for no more than 42 days
How many days does a sequestration have the power against before its petitioned?
Within 60 days
When sequestration is effected what cannot be done?
Arrestment, money attachment, interim attachment or attachment of the debtors estate.
What is a moratorium and which act is it governed by?
A moratorium prevents a creditor from taking certain enforcement action for a specified period of time
Bankruptcy (Scotland) Act 2016
What cannot be done while a moratorium is in place?
Serve a charge for payment
Commence or execute diligence to enforce payment
Sequestrate
Release funds to a creditor
What can be done while a moratorium is in place?
Auction an item which has already been attached/ removed
Implement a decree of forthcoming
Implement decree or order for sale of ship or cargo
Execute;
- earnings arrestment
- current maintenance arrestment, or
- conjoined arrestment order
Which came into effect before the day on which the moratorium began
How long does a moratorium last and which act extended the previous period?
Last for 6 months
Begins day entry into register of insolvencies
Coronavirus (Recovery and Reform)(Scotland) Act 2022
