Presentation on theme: "Bankruptcy Law Reform: Business DAS Chris Boyland."— Presentation transcript:
Bankruptcy Law Reform: Business DAS Chris Boyland
Business Debt Arrangement Scheme The Debt Arrangement Scheme (DAS) is currently open to individuals who can enter an ‘individual’ Debt Payment Programme (DPP) or a joint DPP. Bankruptcy Law Reform consultation in 2012 proposed a debt management solution for sole traders and partnerships. Stakeholder support for a new Business DAS to be developed. Business DAS Working Group met in August Representatives from ICAS; IPA; BBA and HMRC The Bankruptcy and Debt Advice (Scotland) Act 2014 extends powers to apply DAS to ‘legal persons’.
Business Debt Arrangement Scheme legislation Debtors (legal persons) applying to enter Business DAS must seek advice from an Insolvency Practitioner IPs to provide advice and assess viability of legal person (i.e. sole trader, partnerships etc.) and must declare viability as part of DPP proposal (Business) Debt Payment Programme to be completed within 5 years IP to conduct annual reviews Legal persons must agree a ‘nominated person’ to represent and correspond with the IP and DAS Administrator. All debts must be disclosed and included in DPP. All assets must be declared and non-trading assets not sold unless for the benefit of creditors. All persons with management/control will be named on DAS Register. Grounds for revocation include changes to format of the legal person – 6 weeks moratorium to apply for a revised DPP.
Debt Arrangement Scheme changes All debts to be included in all DPPs DAS approved advisers – removal of ‘working towards’ accreditation at Type 2 of the Scottish National Standards
Next steps The Business DAS Working Group met on 11 July 2014 to discuss draft regulations. New DAS regulations have been introduced to Scottish Parliament and will be commenced in November.
Chris Boyland, Head of Strategic Reform 1 PENNYBURN ROAD, KILWINNING, AYRSHIRE, KA13 6SA T F W THANK YOU