Does an earnings arrestment still fall on the award of Sequestration?

Does an earnings arrestment still fall on the award of Sequestration, even in the wake of the new Bankruptcy and Debt Advice (Scotland) Act 2014 (‘BADAS’)? What if it was executed within a 60 day period before the date of sequestration?

Yes, an earnings arrestment still ceases to have effect on the date of sequestration: meaning either the date of the award if it’s a debtor application or, in the case of a creditor petition, the warrant to cite date. This is set out in detail in s72 of the Debtors (Scotland) Act 1987.

As regards the timing of the execution of an earnings arrestment and the so-called 60 day rule, the Bankruptcy (Scotland) Act 1985 is quite clear: the provisions in relation to diligence by a creditor do not apply to earnings arrestments (s37 (5A)). The 60 day rule only applies to arrestments and attachments. There are 60 day provisions applying to inhibitions too.

However, it is worth bearing in mind that following the implementation of BADAS there is now an optional 6 week period of moratorium and any earnings arrestment that that is in place before the moratorium starts, continues. It only stops in the event of sequestration, whereas if there is no earnings arrestment in place before the moratorium begins, the moratorium stops a new earnings arrestment.

Outstanding CPPI and CPI exam results for ISS candidates

Didn’t they do well? 100% of Insolvency Support Services’ candidates in the June 2015 sitting of the CPPI exams have all passed, over half (55%) with merit or distinction. Our candidates took both first and second place in Scotland.

Meanwhile, all but one of our candidates in the CPI June 2015 exams passed too. 75% passed with merit, and one of our candidates took first place in Scotland.

Eileen Maclean, Insolvency Support Services director and lead trainer, commented: “Our congratulations to all our candidates, as well as to Wilson Andrews and Accountant in Bankruptcy, which achieved a 100% pass rate for their candidates. It’s very satisfying to see our candidates doing so well.”

Insolvency Support Services, which has recently been short-listed in the Education / Training Provider of the Year category in the Insolvency & Recovery Awards 2015, offers a range of training courses to meet the needs of insolvency practitioners throughout their careers.

ISS sponsors R3 in Scotland Annual Dinner

Insolvency Support Services are sponsoring the forthcoming R3 in Scotland Annual Dinner. Having supported the inaugural R3 in Scotland’s Ladies Lunch in 2014, we are delighted to be associated with this year’s event being held on 11 September at the Grand Central Hotel in Glasgow.

The Snap Happy Media Photo Booth, sponsored by Insolvency Support Services, will be capturing the evening’s events.

We hope to see many of our clients and contacts there.