Presentation on theme: "New Functions of AiB Chris Boyland Strategic Reform."— Presentation transcript:
New Functions of AiB Chris Boyland Strategic Reform
New Functions of AiB These functions will be transferred from the Courts to AIB: 1.Application by the trustee for direction in matters in sequestration where the Accountant in Bankruptcy is not the trustee 2.Recall where the only ground is that the debtor can pay all of their debts and the fees and outlays of the trustee in full. 3.Bankruptcy Restriction Order (BRO) 4.Appointment of a replacement trustee 5.Replacement of trustee acting in more than one sequestration And: 6.Removal of trustee and trustee not acting 7.Extension time period for a trustee to adopt a contact 8.Conversion a PTD into a sequestration 9.Cure a defect in procedure 10.Valuation of debts depending on contingency
New Functions of AiB Making an application to AiB in relation to these new functions: Applications should be made on the appropriate statutory form Applications can be made electronically or in writing/by post AiB will record receipt of the application on BASYS, AiB’s new case management system. If any interested party disagrees with an AiB decision in relation to these new functions (or AiB’s existing functions), then they must apply to AiB for a review of that decision before they can make an appeal to the Sheriff Court If any interested party does apply for a review, then AiB must: notify all other interested parties of the application, provide them with a copy of the decision and review application, and advise them that they have 21 days in which to make written representations, should they wish to do so.
New Functions of AiB Process/Timescales: 1.Application by the trustee for direction in matters in sequestration where the Accountant in Bankruptcy is not the trustee: Trustees may apply to AiB for a direction in relation to any particular matter arising in the sequestration. AiB must make a direction within 28 days of receipt of the application or refer the application to the Sheriff. Where AiB has sought direction from the Sheriff, it must notify the trustee within 7 days of receipt of the direction from the Sheriff Interested parties will have 14 days from the date of issue of the direction in which to apply for a review of AiB’s decision.
New Functions of AiB Process/Timescales: 2. Recall where the only ground is that the debtor can pay all of their debts and the fees and outlays of the trustee in full (N.B. AiB can also recall an award where there are concurrent sequestrations and the sheriff has issued a direction.) The debtor, any creditor, the trustee or any other interested party can apply to AiB for the recall of sequestration where the debtor has paid or is able to pay his debts in full. Interested parties will have 21 days to make representations, from the date that AiB receives the application for recall. Where the applicant is the trustee, a statement of affairs should be submitted at the same time as the application. Where the applicant is someone else, the trustee must provide a statement of affairs to the applicant and a statement of affairs must be submitted before the expiry of the 21 day period.
New Functions of AiB Process/Timescales: 2. Recall where the only ground is that the debtor can pay all of their debts and the fees and outlays of the trustee in full (cont’d): Failure to submit a statement of affairs by the deadline will mean that the application is not complete and, therefore, it cannot be progressed until a statement of affairs is received. Where the statement of affairs indicates that the amount of the trustee’s outlays and remuneration are not agreed, AiB must make a determination of outlays and remuneration Where recall is granted, AiB must consider the annulment of any BRO/interim BRO in force at the time AiB must record its decision to grant recall on the RoI or to refuse to grant recall of an award of sequestration on BASYS. AiB must issue a copy of its decision to all interested parties.
New Functions of AiB Process/Timescales: 3. Bankruptcy Restriction Orders (BROs): BRO’s for a time period of less than 5 years may now be made by AiB BROs for a period of 5 years or more may still only be made by a Sheriff. A BRO may only be made by the Sheriff on the application of AiB. AiB must notify the debtor of the application to make a BRO. This notification must advise the debtor of the reasons for the BRO and inform them that that they have 14 days to make representations AiB must proceed to make or not to make a BRO within 21 days of issuing the notice to the debtor and after considering any written representations AiB must record its decision in the RoI where a BRO is made.
New Functions of AiB Process/Timescales: 4. Appointment of a replacement trustee: Where there is no timeous objection, AiB must declare the elected person to be the replacement trustee, without delay. Where there is an objection, AiB must consider the objection, giving all interested parties the opportunity to make representations. Interested parties will have 14 days from the receipt of the objection in which to make representations. On the expiry of the 14 days, AiB must make its decision within 7 days and advise all interested parties. AiB must record its decision on the RoI where a replacement trustee is appointed.
New Functions of AiB Process/Timescales: 5. Replacement of trustee acting in more than one sequestration: Where a trustee is no longer able to act as trustee either because he has died, ceased to be qualified to act as a trustee, or there is a conflict in interest or a change in personal circumstances, AiB may determine that the trustee is removed from office The applicant must notify all interested parties known to them of their application, in order that they may make representations AiB will record the date on which notice was given Interested parties will have 14 days to make representations, from the date on which notice was given AiB must take any representations into account before making its decision If AiB determines that no person is to be appointed, then the AiB is deemed to be the replacement trustee. AiB must record its decision in the RoI
New Functions of AiB Process/Timescales: 6. Removal of trustee and trustee not acting: AiB can remove a trustee from office if there are reasons to do so An application for removal can be made by the commissioners or a person representing not less than 25% in value of creditors On receipt of the application, AiB must issue a copy to the trustee advising them that they have 21 days to make representations AiB must grant the order within 14 days or refer the matter to the Sheriff Where AiB has referred the case to the Sheriff for a direction, AiB will have 7 days from the receipt of the direction to make their decision. AiB must record its decision in the RoI where the application is upheld AiB must send a copy of the order to the trustee, commissioners and any creditors, as they are the only people who may request a review of the decision
New Functions of AiB Process/Timescales: 7. Extension time period for a trustee to adopt a contract: In cases where AiB is not the trustee, instead of applying to the Sheriff to extend the 28 day period, on the expiry of which the trustee must adopt or refuse to adopt a contract, the trustee must apply to AiB instead. AiB must advise the trustee of their decision either to extend or refuse to extend the period to adopt the contract or that AiB has sought a direction from the Sheriff in regard to the extension within 14 days. Where AiB has sought a direction from the Sheriff, the 14 days is extended until the Sheriff makes his decision. AiB must advise the trustee of the Sheriff’s direction within 7 days AiB must record their decision on BASYS.
New Functions of AiB Process/Timescales: 8. Conversion a PTD into a sequestration: A member state liquidator will now apply to the AiB for the conversion (under Article 37 of the EC Insolvency Regulation) for conversion of a PTD into sequestration instead of petitioning the Sheriff Court An affidavit will be prepared and sworn and submitted in support of the application. The application will be served upon the debtor, the trustee and other interested parties AiB will make such an order as it sees fit, within 14 days of receipt of the application AiB must advise the applicant, the debtor, the trustee and any other interested parties of its decision AiB must record its decision on the RoI.
New Functions of AiB Process/Timescales: 9.Cure a defect in procedure: AIB can make an order correcting a clerical or incidental error in a document or waive a failure to comply with a time limit An order can be made on an application by interested party or without an application if AIB proposes to correct a matter Interested parties will have 14 days from the date of notification of an application, to make representations AiB must make its decision within 14 days of the expiry of the period of 14 days allowed for representations. AiB must record its decision on BASYS and notify all interested persons.
New Functions of AiB Process/Timescales: 10. Valuation of debts depending on contingency: In cases where there is no permanent trustee, a creditor must now apply to AiB for a valuation of a contingent debt In cases where there is a permanent trustee, the creditor will apply to the permanent trustee, as before. AiB will put a value on the debt, so far as it is contingent AiB must record its decision on BASYS, advising the creditor and all interested persons of its valuation The creditor can apply to AiB for a review of its valuation
Chris Boyland, Head of Strategic Reform 0141 278 4412, email@example.com 1 Pennyburn Road, Kilwinning, Ayrshire, KA13 6SA T 0300 200 2600 F 0300 200 2601 W www.aib.gov.uk THANK YOU