Explanatory note

These Regulations make amendments and prescribe forms in consequence of provision made by the Bankruptcy and Diligence (Scotland) Act 2024 (“the 2024 Act”).

Regulation 2 amends the notification requirements on the Accountant in Bankruptcy (“AiB”) in the Bankruptcy (Applications and Decisions) (Scotland) Regulations 2016 in connection with the process for recall where AiB is the trustee and acts on its own accord in proposing recall of an award of sequestration on the basis that it considers the debtor has paid, or is able to pay, the debtor’s debts in full. These amendments are in consequence of section 4 of the 2024 Act which modifies the process for applying for recall of sequestration under the Bankruptcy (Scotland) Act 2016 (“the 2016 Act”).

Regulation 3(5) specifies the forms to be used for the purposes of section 147A(3), (5)(a) and (6)(b) of the 2016 Act, as inserted by section 12(2) of the 2024 Act—

• form 35 to be used for a trustee application to AiB for authority to resign office on account of the debtor’s failure to co-operate,

• form 36 for the ‘intention to resign’ notice which a trustee is required to use to notify the debtor and every creditor known to the trustee of their intention to make an application to AiB to resign office,

• form 37 which AiB is to issue to the trustee where AiB decides to grant the trustee’s application for authority to resign office.

The forms are inserted into schedule 1 of the Bankruptcy (Scotland) Regulations 2016. Regulation 3(4) corrects an erroneous cross-reference in Form 23 in those Regulations.

A Business and Regulatory Impact Assessment and Child Rights and Wellbeing Impact Assessment have been prepared and are available online at www.legislation.gov.uk.