Section 5 Recall of sequestration: payment of interestI1I2

Part 2 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

In section 30 (recall of sequestration by sheriff)—

In section 32(4) (application under section 31: further procedure)—

In section 34(1) (recall of sequestration by Accountant in Bankruptcy), in paragraph (a), for “(including the outlays and remuneration of the interim trustee and the trustee)” substitute

“, including the payment in full of—

(i)

any interest payable on the debtor’s debts (see section 37A),

(ii)

the outlays and remuneration of the interim trustee and of the trustee,”.

In section 35 (recall where Accountant in Bankruptcy trustee)—

After section 37, insert—

“Interest

37A

(1)

This section applies for the purpose of determining the amount of interest payable on the debtor’s debts in relation to a recall of an award of sequestration.

(2)

Interest, between the date of sequestration and the date of payment of the debt, is payable at the rate specified in section 129(10), unless subsection (3) applies.

(3)

This subsection applies if the whole of the debt is paid in full within 6 months after the date of the award of sequestration, in which case interest is not payable on the debt.

(4)

For the avoidance of doubt, if only part of the debt is paid within 6 months after the date of the award of sequestration, interest is payable on the whole of the debt (including any part of the debt already paid since the award) in accordance with subsection (2).”.