Personal Insolvency Act 2012

• (4) The Insolvency Service, with the consent of the Minister, may, and if directed by the Minister to do so and in accordance with the terms of the direction, shall, by regulations provide for any of the following:

• (a) the functions (if any) under this Act of a personal insolvency practitioner which may or may not, be performed by a person to whom paragraph (a) or (b) of subsection (1) applies;

• (b) the qualifications (including levels of training, education, expertise and experience), and any other attributes (including standards of competence, fitness and probity) that a person to whom paragraph (a) or (b) of subsection (1) applies must possess before a particular function of a personal insolvency practitioner may be performed by him or her;

• (c) the requirement that a person to whom paragraph (a) or (b) of subsection (1) applies, be subject, in the performance of functions or acts pursuant to that subsection, to appropriate supervision, guidance and training by a personal insolvency practitioner.

• (5) Without prejudice to the generality of paragraph (c) of subsection (4), regulations under that paragraph may require, where a person performs acts or functions pursuant to subsection (1), that the supervision and guidance referred to in the paragraph ensure all or any of the following, where applicable:

• (a) the proper gathering, checking and processing of information regarding a debtor’s financial affairs;

• (b) the proper preparation and communication of written or oral information or evidence for any purpose under any enactment;

• (c) the proper management of records and accounts;

• (d) the proper chairing and conduct of creditors’ meetings.]

Chapter 3 Debt Settlement Arrangements

55. Debt Settlement Arrangement: General Conditions.

55.— (1) Subject to the provisions of this Act, a debtor who satisfies the eligibility criteria specified in section 57 may make a proposal for a Debt Settlement Arrangement with one or more of his or her creditors in respect of the payment or satisfaction of his or her debts.

• (2) A proposal for a Debt Settlement Arrangement shall be made on behalf of a debtor by a personal insolvency practitioner in accordance with the provisions of this Part.

• (3) Where two or more debtors are jointly party to all of the debts to be covered by a Debt Settlement Arrangement and each of those debtors satisfy the eligibility criteria specified in section 57, those debtors may jointly propose a Debt Settlement Arrangement and, unless otherwise specified, references in this Chapter to the “debtor” shall be construed as meaning such joint debtors.

(4)(a) A Debt Settlement Arrangement shall not contain any terms that would release the debtor from an excluded debt or otherwise affect such a debt.

• (b) A proposal for a Debt Settlement Arrangement shall not include any terms that, if contained in a Debt Settlement Arrangement that came into effect, would contravene paragraph (a).

• (5) Unless otherwise expressly stated, a reference in this Chapter to a debt is a reference to an unsecured debt and a reference to a creditor is a reference to an unsecured creditor.

56. Debt Settlement Arrangement permitted once only.

56.— A debtor may enter into a Debt Settlement Arrangement once only.

57. Debt Settlement Arrangement: Eligibility criteria.

57.— (1) Subject to the provisions of this section and this Chapter, a debtor shall not be eligible to make a proposal for a DebtSettlement Arrangement unless he or she satisfies the following criteria—

• (a) that the debtor—

• (i) is domiciled in the State, or

• (ii) within one year before the date of the application for a protective certificate has ordinarily—

• (I) resided in the State, or

• (II) had a place of business in the State;

• (b) that the debtor is insolvent;

• (c) that the debtor has completed a Prescribed Financial Statement and has made a statutory declaration confirming that the statement is a complete and accurate statement of the debtor’s assets, liabilities, income and expenditure;

• (d) that the personal insolvency practitioner has completed a statement under section 54 in respect of the debtor;

• (e) that the debtor is not—

• (i) an undischarged bankrupt,

• (ii) a discharged bankrupt subject to a bankruptcy payment order,

• (iii) a person who is a specified debtor as respects a Debt Relief Notice which is in effect,

• (iv) a person who, as a debtor, is subject to a Personal Insolvency Arrangement which is in effect, or

• (v) a person who, as a debtor, is subject to an arrangement under the control of the court under Part IV of the Bankruptcy Act 1988;

• (f) that the debtor has not—

• (i) been the subject of a protective certificate issued under section 61 less than 12 months prior to the date of the application for a protective certificate,

• (ii) had his or her debts discharged pursuant to section 46(1) less than 3 years prior to the date of the application for a protective certificate,

• (iii) had his or her debts discharged pursuant to a Personal Insolvency Arrangement less than 5 years prior to the date of the application for a protective certificate, or

• (iv) been discharged from bankruptcy less than 5 years prior to the date of the application for a protective certificate.

• (2) The criterion specified in subsection (1)(f) shall not apply where the debtor has, on notice to the Insolvency Service, made an application to the appropriate court and the court has made an order stating that it is satisfied that the current insolvency of the debtor arises by reason of exceptional circumstances or other factors which are substantially outside the control of the debtor and that it would be just to permit the debtor to make a proposal for a Debt Settlement Arrangement.

• (3) A debtor shall not be eligible to make a proposal for a Debt Settlement Arrangement where 25 per cent or more of his or her debts (other than excluded debts and secured debts) were incurred during the period of 6 months ending on the date on which an application is made under section 59 for a protective certificate.

58. Creditor consent required for inclusion of excludable debt in Debt Settlement Arrangement.

58.— (1) An excludable debt shall be included in a proposal for a Debt Settlement Arrangement only where the creditor concerned has consented, or is deemed to have consented, in accordance with this section, to the inclusion of that debt in such a proposal.

• (2) Where a personal insolvency practitioner proposes to include an excludable debt in a proposal for a Debt Settlement Arrangement, he or she shall, without delay, notify the creditor concerned of that fact, which notification shall be accompanied by—

• (a) such information about the debtor’s affairs (including his or her creditors, debts, liabilities, income and assets) as may be prescribed, and

• (b) a request in writing that the creditor confirm, in writing, whether or not the creditor consents, for the purposes of this section, to the inclusion of the debt in a Debt Settlement Arrangement.

• (3) Subject to subsection (6), a creditor shall comply with a request under subsection (2)(b) within 21 days of receipt of the notification under that subsection.

• (4) Where a creditor does not comply with subsection (3), the creditor shall be deemed to have consented to the inclusion of that debt in a proposal for a Debt Settlement Arrangement.

• (5) Where a creditor consents or is deemed to have consented, in accordance with this section, to the inclusion of an excludable debt in a proposal for a Debt Settlement Arrangement, that creditor shall be entitled to vote at any creditors’ meeting called to consider that proposal.

• (6) Where the debtor concerned is the subject of a protective certificate, and a creditor to whom this section applies brings an application under section 63(1) in respect of that protective certificate, the period referred to in subsection (3) shall not commence until the date on which the appropriate court determines the application.

• (7) An excludable debt shall not be the subject of a Debt Settlement Arrangement unless it is a permitted debt.

• (8) In this Chapter, “permitted debt” means an excludable debt to which subsection (1) applies.

59. Debt Settlement Arrangement: Application for protective certificate.

59.— (1) Where a personal insolvency practitioner has been instructed pursuant to section 53 to make a proposal for a Debt Settlement Arrangement, the personal insolvency practitioner shall notify the Insolvency Service of the debtor’s intention to propose a Debt Settlement Arrangement and apply on behalf of the debtor for a protective certificate.

• (2) The application referred to in subsection (1) shall be in such form F55[as may be prescribed] by the Insolvency Service and shall be accompanied by such fee (if any) as may be prescribed and the following documents:

• (a) the statement of the personal insolvency practitioner prepared under section 54;

• (b) a document signed by the debtor confirming that he or she satisfies the eligibility criteria specified in section 57;

• (c) the statutory declaration of the debtor referred to in section 57(1)(c);

• (d) the Prescribed Financial Statement;

• (e) a schedule of the creditors of the debtor and the debts concerned, stating in relation to each such creditor—

• (i) the amount of each debt due to that creditor,

• (ii) whether, as respects the debt concerned, the creditor is a secured creditor and, if so, the nature of the security concerned, and

• (iii) such other information as may be prescribed;

• (f) the debtor’s written consent to—

• (i) the disclosure to the Insolvency Service,

• (ii) the processing by the Insolvency Service, and

• (iii) the disclosure by the Insolvency Service to creditors of the debtor concerned,

of personal data of that debtor, to the extent necessary in respect of the Debt Settlement Arrangement procedure provided for in this Chapter;

• (g) the debtor’s written consent to the making of any enquiry under section 60 relating to the debtor by the Insolvency Service.

• (3) An application under this section may be withdrawn by the personal insolvency practitioner at any time prior to the issue of a protective certificate under section 61.

• (4) Where a personal insolvency practitioner becomes aware of any inaccuracy or omission in an application under this section or any document accompanying such an application, he or she shall inform the Insolvency Service of this fact as soon as practicable and the Insolvency Service shall have regard to any information provided under this subsection for the purposes of its consideration of the application.

60. Debt Settlement Arrangement: Consideration by Insolvency Service of application for protective certificate.

60.— (1) In its consideration of an application under section 59, the Insolvency Service shall be entitled to request any further information it requires from the debtor or personal insolvency practitioner and to defer further consideration of the application until such information is furnished to it.

• (2) Where a debtor or personal insolvency practitioner fails to provide the information requested by the Insolvency Service under subsection (1) within 14 days or such longer period as the Insolvency Service may permit the application shall be deemed to be withdrawn.

• (3) Subject to subsection (4), in considering the application for a protective certificate, the Insolvency Service shall make such enquiries as it considers necessary to satisfy itself:

• (a) that the personal insolvency practitioner is a person entitled to act as a personal insolvency practitioner;

• (b) having regard to the documents which are required to accompany the application for a protective certificate—

• (i) that the debtor satisfies the eligibility criteria for making a proposal for a Debt Settlement Arrangement specified in section 57, and

• (ii) the application does not appear to be frivolous or an attempt to frustrate the efforts of creditors to recover debts due to them.

• (4) Subject to subsections (5) to (7), for the purposes of subsection (3) the Insolvency Service shall be entitled to presume that the debtor satisfies the eligibility criteria for a Debt Settlement Arrangement specified in section 57 if the documents required to be lodged with the Insolvency Service have been so lodged and the Insolvency Service has no reason to believe that the information supplied in or in support of the application for a protective certificate is incomplete or inaccurate.

• (5) The Insolvency Service may make such enquiries as it considers necessary to verify the completeness or accuracy of any matter referred to in the Prescribed Financial Statement of the debtor or in relation to the assets, liabilities, income or expenditure of the debtor.

• (6) Without prejudice to the generality of subsection (5) the matters in respect of which the Insolvency Service may make an enquiry include the following:

• (a) particulars relating to bank accounts, securities accounts or other accounts held, solely or jointly, by or for the benefit of the debtor with financial institutions or financial intermediaries in the State or abroad;

• (b) particulars relating to assets of the debtor and the value of such assets;

• (c) particulars of the liabilities of the debtor;

• (d) the employment and income of the debtor;

• (e) payments received by the debtor from the Department of Social Protection or other Departments of State or other State bodies or agencies and whether or not such payments are made as agent of any other person;

• (f) taxes or charges imposed by or under statute paid or owed by the debtor, whether within or outside the State and refunds in respect of such taxes and charges which are or may become due to the debtor.

• (7) Nothing in this section shall be construed as requiring the Insolvency Service to make an enquiry in any case.

• (8) A person who receives an enquiry from the Insolvency Service pursuant to this section shall be under a duty to furnish the information requested as soon as reasonably practicable.

• (9) Notwithstanding anything contained in any enactment, for the purposes of the performance of the functions of the Insolvency Service under this Chapter information held by a Department of State, the Revenue Commissioners, a local authority or any other State body or agency in relation to a debtor may be furnished to the Insolvency Service.

61. Debt Settlement Arrangement: Referral of application to court for issue of protective certificate.

61.— (1) Where the Insolvency Service, following its consideration under section 60—

• (a) is satisfied that an application under section 59 is in order, it shall—

• (i) issue a certificate to that effect,

• F57[(ii) furnish that certificate together with a copy of the application and the supporting documentation (other than the documents referred to in section 59(2)(f) and (g)) to the appropriate court, and]

• (iii) notify the personal insolvency practitioner to that effect,

and

• (b) is not so satisfied, it shall notify the personal insolvency practitioner to that effect and request him or her, within 21 days from the date of the notification, to submit a revised application or to confirm that the application has been withdrawn.

• (2) Where the appropriate court receives the application for a protective certificate and accompanying documentation pursuant to subsection (1)(a), it shall consider the application and documentation and, subject to subsection (3)—

• (a) if satisfied that the eligibility criteria specified in section 57 have been satisfied, and the other relevant requirements relating to an application for the issue of a protective certificate have been met, shall issue a protective certificate, and

• (b) if not so satisfied, shall refuse to issue a protective certificate.

• (3) The appropriate court, where it requires further information or evidence for the purpose of its arriving at a decision under subsection (2), may hold a hearing, which hearing shall be on notice to the Insolvency Service and the personal insolvency practitioner concerned.

• (4) F58[…]

• (5) Subject to F59[subsections (6), (7) and (7A)] and section 76(2), a protective certificate shall be in force for a period of 70 days from the date of its issue.

• (6) Where a protective certificate has been issued pursuant to subsection (2)(a), F60[or extended under subsection (7) or (7A),] the appropriate court may, on application to that court by the personal insolvency practitioner, extend the period of the protective certificate by an additional period not exceeding 40 days where—

• (a) the debtor and the personal insolvency practitioner satisfy the court that they have acted in good faith and with reasonable expedition, and

• (b) the court is satisfied that it is likely that a proposal for a Debt Settlement Arrangement which is likely—

• (i) to be accepted by the creditors, and

• (ii) to be successfully completed by the debtor,

will be made if the extension is granted.

• F59[(7) Where a protective certificate has been issued pursuant to subsection (2)(a) or extended under subsection (6) or (7A), the appropriate court may, on application to that court by a personal insolvency practitioner, extend the period of the protective certificate by an additional period not exceeding 40 days where—

• (a) the personal insolvency practitioner has been appointed in accordance with section 49A, 49B or 49C, and

• (b) the court is satisfied that the extension is necessary to enable the personal insolvency practitioner so appointed to perform his or her functions under this Chapter.]

• F60[(7A) Where a protective certificate has been issued pursuant to subsection (2)(a), or extended under subsection (6) or (7), the appropriate court may, on application to that court by the personal insolvency practitioner, extend the period of the protective certificate by an additional period not exceeding 40 days, where the court is satisfied that, by reason of exceptional circumstances or of other factors which are substantially outside the control of the debtor and the personal insolvency practitioner, it would be just to grant the extension.]

• (8) A hearing held under F59[this section] shall be held with all due expedition.

• (9) The period of a protective certificate may be extended F59[once only under each of subsections (7) and (7A).].

• (10) The registrar of the appropriate court shall notify the Insolvency Service and the personal insolvency practitioner concerned where the court—

• (a) issues or extends a protective certificate under this section,

• (b) refuses to issue or extend a protective certificate under this section, or

• (c) decides to hold a hearing referred to in subsection (3).

• F57[(11) Where a protective certificate is issued under this section, the Insolvency Service shall—

• (a) record in the Register of Protective Certificates, in addition to such other details as may be prescribed under section 133(3)(b), the following—

• (i) the name and address of the debtor and the date of issue of the protective certificate,

• (ii) where applicable—

• (I) the extension under this section of the protective certificate, and

• (II) the making by the appropriate court of an order under section 63, and the creditor in respect of whom the order has been made,

and

• (iii) the date on which the protective certificate ceases, under this Chapter, to be in force,

and

• (b) within 3 months of the date on which the protective certificate ceases, under this Chapter, to be in force, remove from the Register of Protective Certificates all information recorded in it in respect of the protective certificate.]

• (12) On receipt of a notification under subsection (10) of a decision of the court referred to in that subsection, the personal insolvency practitioner shall notify each of the creditors specified in the schedule of creditors of that decision and, in the case of a decision to issue a protective certificate, the notification by the personal insolvency practitioner shall contain a statement—

• (a) that the debtor intends to make a proposal for a Debt Settlement Arrangement,

• (b) of the effect of the protective certificate under section 62, and

• (c) of the right of the creditor under section 63 to appeal the issue of the protective certificate.

• (13) Notwithstanding the provisions of F59[subsections (5), (6), (7) and (7A),] a protective certificate that is in force on the date on which a proposal for a Debt Settlement Arrangement is approved in accordance with section 73 shall continue in force until it ceases to have effect in accordance with section 76.

• (14) A protective certificate issued under this section shall—

• (a) specify—

• (i) the name of the debtor who is the subject of it,

• (ii) the debts (“specified debts”) which are subject to it, and

• (iii) the name of each creditor to whom a specified debt is owed,

and

• (b) contain such other information as may be prescribed.

• (15) In considering an application under this section the appropriate court shall be entitled to treat a certificate issued by the Insolvency Service under subsection (1) as evidence of the matters certified therein.

62. Debt Settlement Arrangement: Effect of issue of protective certificate.

62.— (1) Subject to subsections (3), (4), (5) and (8), a creditor to whom notice of the issue of a protective certificate has been given shall not, whilst the protective certificate remains in force, in relation to a specified debt—

• (a) initiate any legal proceedings;

• (b) take any step to prosecute legal proceedings already initiated;

• (c) take any step to secure or recover payment;

• (d) execute or enforce a judgment or order of a court or tribunal against the debtor;

• (e) take any step to recover goods in the possession or custody of the debtor, F61[whether or not] title to the goods is vested in the creditor or the creditor holds security over the goods;

• (f) contact the debtor regarding payment of the specified debt, otherwise than at the request of the debtor;

• (g) in relation to an agreement with the debtor, other than a security agreement, by reason only that the debtor is insolvent or that the protective certificate has been issued—

• (i) terminate or amend that agreement, or

• (ii) claim an accelerated payment under that agreement.

• (2) Whilst a protective certificate remains in force, no bankruptcy petition relating to the debtor—

• (a) may be presented by a creditor to whom subsection (1) applies in respect of a specified debt,

• (b) in a case where the petition has been presented by such a creditor in respect of a specified debt, may be proceeded with.

• (3) Without prejudice to subsections (1) and (2), and subject to section 68, whilst a protective certificate remains in force, no other proceedings and no execution or other legal process in respect of a specified debt may be commenced or continued by a creditor to whom subsection (1) applies against the debtor or his or her property, except with the leave of the court and subject to any order the court may make to stay such proceedings, enforcement or execution for such period as the court deems appropriate pending the outcome of attempts to reach a Debt Settlement Arrangement, but this subsection shall not operate to prohibit the commencement or continuation of any criminal proceedings against the debtor.

• (4) Notwithstanding subsection (1), the fact that a protective certificate is in force in relation to a debtor under this Chapter shall not operate to prevent a creditor taking the actions referred to in subsection (1) as respects another person who has guaranteed the debts of the debtor to which the protective certificate relates.

• (5) Notwithstanding subsection (1), the fact that a protective certificate is in force in relation to a debtor under this Chapter shall not operate to prevent a creditor taking the actions referred to in subsection (3) as respects a person who has jointly contracted with the debtor or is jointly liable with the debtor to the creditor and that other person may sue or be sued in respect of the contract without joining the debtor.

• (6) Subsections (4) and (5) do not apply where a protective certificate is also in force as respects the other person.

• (7) In reckoning any period of time for the purpose of any applicable limitation period in relation to any proceedings or process to which subsection (1) or (3) applies (including any limitation period under the Statute of Limitations 1957), the period in which the protective certificate concerned is in force under section 61 shall be disregarded.

• (8) A secured debt shall not be subject to or affected by a protective certificate under this Chapter.

63. Debt Settlement Arrangement: Right of appeal as respects protective certificate.

63.— (1) Where a creditor is aggrieved by the issue of a protective certificate that creditor may within 14 days of the giving of notice of the issue of the protective certificate to that creditor apply to the appropriate court for an order directing that the protective certificate shall not apply to that creditor.

• (2) A creditor who brings an application under subsection (1) shall give notice to the Insolvency Service and the relevant personal insolvency practitioner and to such other persons as the court may direct of that fact, and the application shall be made in such form as is provided for in rules of court.

• (3) In determining an application under this section the court shall not make an order directing that the protective certificate shall not apply to that creditor unless it is satisfied that—

• (a) not making such an order would cause irreparable loss to the creditor which would not otherwise occur, and

• (b) no other creditor to whom notice of the protective certificate has been given would be unfairly prejudiced.

• (4) In determining the costs of the application the court shall have regard to the objective that all the parties to such an application should bear their own costs unless to do so would cause a serious injustice to the parties to the application.

• (5) Where the court makes an order under this section, the court shall, unless it considers that there are good reasons not to do so, direct the creditor to hold any moneys or other assets recovered in trust for the benefit of the other creditors to whom the protective certificate applies, pending a further direction on the matter by the court.

• (6) A hearing under subsection (1) shall be held with all due expedition.

64. Actions to be taken by personal insolvency practitioner following issue of protective certificate.

64.— (1) Where a protective certificate has been issued, the personal insolvency practitioner shall as soon as practicable thereafter—

• (a) give written notice to the creditors concerned that the personal insolvency practitioner has been appointed by the debtor for the purpose of making a proposal for a Debt Settlement Arrangement and, subject to section 67(2), invite those creditors to make submissions to the personal insolvency practitioner regarding the debts concerned and the manner in which the debts might be dealt with as part of a Debt Settlement Arrangement, and such notice shall be accompanied by the debtor’s completed Prescribed Financial Statement,

• (b) consider any submissions made by creditors in accordance with paragraph (a) regarding the debts and the manner in which the debts might be dealt with as part of a Debt Settlement Arrangement, including any submission made by a creditor with respect to previous or existing offers of arrangements made by the creditor to or with the debtor, and

• (c) make a proposal for a Debt Settlement Arrangement in respect of the debts concerned.

(2)(a) A personal insolvency practitioner may in any case request a creditor to file a proof of debt and the debt shall be proved in the same manner as a debt of a bankrupt is proved under the Bankruptcy Act 1988 and, subject to subsection (3), paragraphs 1 to 22 of the First Schedule of that Act shall apply with all necessary modifications to the proof of such debts.

• (b) Subject to paragraph (c), a creditor who does not comply with a request under paragraph (a) is not entitled to—

• (i) vote at a meeting referred to in section 72 or 82, or

• (ii) share in any distribution that may be made under the Debt Settlement Arrangement concerned.

• (c) Where a creditor to whom paragraph (b) applies files a proof of debt in the manner specified in paragraph (a), paragraph (b) shall cease to apply, but without prejudice to anything done while that paragraph applied.

• (3) In applying the First Schedule of the Bankruptcy Act 1988 to proof of debts under this section—

• (a) a reference in that Schedule to the Court and the Official Assignee shall be read as a reference to the personal insolvency practitioner, and

• (b) a reference to a bankrupt shall be read as the reference to the debtor to whom the proposal for a Debt Settlement Arrangement relates.

65. Mandatory requirements concerning Debt Settlement Arrangement.

65.— (1) Subject to the mandatory requirements referred to in subsection (2), the terms of a Debt Settlement Arrangement shall be those which are agreed to by the debtor and, subject to this Chapter, approved by a majority of the debtor’s creditors in accordance with this Chapter.

• (2) The mandatory requirements referred to in subsection (1) are:

• (a) the maximum duration of a Debt Settlement Arrangement shall be 60 months but a Debt Settlement Arrangement may provide that this period may be extended for a further period of not more than 12 months in such circumstances as are specified in the terms of the Debt Settlement Arrangement;

• (b) where the debtor performs all of his or her obligations specified in a Debt Settlement Arrangement, he or she shall stand discharged from the remainder of the debts covered by the Debt Settlement Arrangement;

• (c) a Debt Settlement Arrangement shall not require the debtor to sell any of his or her assets that are reasonably necessary for the debtor’s employment, business or vocation unless the debtor explicitly consents to such sale;

• (d) a Debt Settlement Arrangement shall not contain any terms which would require the debtor to make payments of such an amount that the debtor would not have sufficient income to maintain a reasonable standard of living for the debtor and his or her dependants;

• (e) a Debt Settlement Arrangement shall—

• (i) make provision for the costs and outlays of the personal insolvency practitioner which relate to the matters referred to in F62[sections 48 to 54] and this Chapter and to the ongoing administration of the Arrangement,

• F63[(ia) make provision for the payment of all tax liabilities incurred by the debtor, or by the personal insolvency practitioner, under the Taxes Consolidation Act 1997 during the administration of the Arrangement and—

• (I) such tax liabilities of the personal insolvency practitioner shall be payable in priority to any payments to creditors, and

• (II) any failure by the debtor to comply with the terms of the provision shall be a breach of the Arrangement such that the Collector-General (within the meaning of the Taxes Consolidation Act 1997) may withdraw his or her agreement under section 58 to accept the compromise contained in the Arrangement, ]

• (ii) indicate the likely amount of the fees, costs and outlays to be incurred, or where this is not practicable, the basis on which those fees, costs and outlays will be calculated, and

• (iii) specify the person or persons by whom those fees, costs and charges are payable and the manner in which they have been or are to be paid;

• (f) a Debt Settlement Arrangement shall make provision for the manner in which the debtor’s debts are to be treated in the event of the death or mental incapacity of the debtor;

• (g) a Debt Settlement Arrangement shall not require that the debtor dispose of his or her interest in his or her principal private residence or to cease to occupy such residence unless the provisions of section 69(3) apply;

• (h) a Debt Settlement Arrangement shall provide that the circumstances of the debtor be reviewed by the personal insolvency practitioner at regular intervals which are specified in the Arrangement (which intervals are not greater than 12 months) during the currency of the Debt Settlement Arrangement;

• (i) a Debt Settlement Arrangement shall provide that the review referred to in paragraph (h) shall include the preparation by the debtor of a new Prescribed Financial Statement, a copy of which together with a statement by the personal insolvency practitioner as to whether he or she considers that statement to be complete and accurate, shall be sent by the personal insolvency practitioner to each creditor;

• (j) the terms of a Debt Settlement Arrangement shall specify the circumstances where the personal insolvency practitioner shall be obliged to propose a variation of the Debt Settlement Arrangement in accordance with section 82.

• (3) The Insolvency Service may publish a Code of Practice providing guidance on any of the matters set out in subsection (2).

• (4) For the purposes of subsection (2)(d), and without prejudice to subsection (3), in determining whether a debtor would have sufficient income to maintain a reasonable standard of living for the debtor and his or her dependants under the Debt Settlement Arrangement, regard shall be had to any guidelines issued under section 23.

66. Debt Settlement Arrangement: Non-exhaustive list of matters for possible inclusion.

66.— (1) Subject to the provisions of this Act, a proposal for a Debt Settlement Arrangement may incorporate one or more of the options in subsection (2) with respect to payments to creditors.

• (2) The terms of a proposal for a Debt Settlement Arrangement may include any one or more of the following:

• (a) a lump sum payment to creditors, whether provided from the debtor’s own resources or from the resources of other persons;

• (b) a payment arrangement with creditors;

• (c) an agreement by the debtor to transfer some or all of the debtor’s property to a person (who may be the personal insolvency practitioner) to hold the property in trust for the benefit of the creditors;

• (d) a transfer of specified assets of the debtor to creditors generally or to a specified creditor;

• (e) a sale of specified assets of the debtor by the personal insolvency practitioner and the payment of the proceeds of such sale to creditors.

• (3) Unless provision is otherwise made in the Debt Settlement Arrangement, and subject to section 67, the arrangement shall provide for payments to creditors to be made on a pari passu basis, and where so otherwise provided the Debt Settlement Arrangement shall specify the reasons for such provision being made.

• (4) Unless provision is otherwise made in the Debt Settlement Arrangement, where an Arrangement provides for payments to a creditor to whom section 58 applies that are greater than the payments that creditor would receive if such payments were made on a pari passu basis, the fees, costs and charges referred to in section 65(2)(e) shall be payable by that creditor in proportion to the payments received by him or her.

• (5) The payment of moneys or the performance of obligations provided for by a Debt Settlement Arrangement may be secured by a charge or a guarantee given by the debtor or a charge or guarantee given by a person other than the debtor.

• (6) Subject to the provisions of this Act, the terms of a Debt Settlement Arrangement may include provisions relating to payments other than those specified in this section.

67. Preferential debts in Debt Settlement Arrangement.

67.— (1) Unless the creditor concerned otherwise agrees in writing and provision is so made in the terms of the Debt Settlement Arrangement, a preferential debt shall, subject to subsection (3), be paid in priority by the debtor and where those debts are to be paid in priority the provisions of section 81 of the Bankruptcy Act 1988 shall apply with all necessary modifications.

• (2) In notifying creditors of the issue of a protective certificate, the personal insolvency practitioner shall indicate that any creditor who considers some or all of his or her debt to be a preferential debt is required to furnish evidence of the circumstances of how that debt or part of that debt is claimed to be a preferential debt within such reasonable period as may be specified, and that in the absence of such evidence, the proposal for a Debt Settlement Arrangement may be prepared on the basis that the debt concerned is not a preferential debt.

• (3) Where a creditor fails to satisfy the personal insolvency practitioner that his or her debt is a preferential debt, the debt shall be treated as not being a preferential debt for the purposes of a Debt Settlement Arrangement.

• (4) In this Chapter, “preferential debt” means a debt which, if the debtor concerned were a bankrupt would be a debt—

• (a) that by virtue of section 81 of the Bankruptcy Act 1988 is to be paid in priority to all other debts, or

• (b) that by virtue of any other statutory provision is to be included among such debts.

68. Secured creditors and Debt Settlement Arrangement.

68.— (1) Subject to this section and section 62, nothing in this Chapter affects the right of a secured creditor of the debtor to enforce or otherwise deal with his or her security.

• (2) A secured creditor of the debtor may not participate in a Debt Settlement Arrangement with respect to a secured debt.

• (3) Subsection (2) shall not operate to prevent the debtor or the personal insolvency practitioner from liaising or sharing information (including a copy of the debtor’s Prescribed Financial Statement and information relating to a proposed or existing Debt Settlement Arrangement) with a secured creditor in connection with a proposed or existing Debt Settlement Arrangement.

• (4) For the avoidance of doubt, a secured creditor shall not be deemed to participate in or otherwise be bound by a Debt Settlement Arrangement as a result of entering into an agreement with the debtor to vary the terms of the secured debt following contact between the secured creditor and debtor, or as applicable, the personal insolvency practitioner as referred to in subsection (3) (including, without limitation, any variation of the terms of the secured debt that would reduce the amounts payable by the debtor in respect of the secured debt for the duration of the Debt Settlement Arrangement).

69. Principal private residence in Debt Settlement Arrangement.

69.— (1) In formulating a proposal for a Debt Settlement Arrangement a personal insolvency practitioner shall, insofar as reasonably practicable, and having regard to the matters referred to in subsection (2), formulate the proposal on terms that will not require the debtor to—

• (a) dispose of an interest in, or

• (b) cease to occupy,

all or a part of his or her principal private residence and the personal insolvency practitioner shall consider any appropriate alternatives.

• (2) The matters referred to in subsection (1) are—

• (a) the costs likely to be incurred by the debtor by remaining in occupation of his or her principal private residence (including rent, mortgage loan repayments, insurance payments, owners’ management company service charges and contributions, taxes or other charges relating to ownership or occupation of the property imposed by or under statute, and necessary maintenance in respect of the principal private residence),

• (b) the debtor’s income and other financial circumstances as disclosed in the Prescribed Financial Statement,

• (c) the ability of other persons residing with the debtor in the principal private residence to contribute to the costs referred to in paragraph (a), and

• (d) the reasonable living accommodation needs of the debtor and his or her dependants and having regard to those needs the cost of alternative accommodation (including the costs which would necessarily be incurred in obtaining such accommodation).

• (3) Where—

• (a) the debtor confirms in writing to the personal insolvency practitioner that the debtor does not wish to remain in occupation of his or her principal private residence; or

• (b) the personal insolvency practitioner, has, having discussed the issue with the debtor, formed the opinion that, taking account of the matters referred to in subsection (2), the costs of continuing to reside in the debtor’s principal private residence are disproportionately large,

the personal insolvency practitioner shall not be required to formulate the proposal for a Debt Settlement Arrangement on terms that will not require the debtor to cease to occupy his or her principal private residence.

• (4) A Debt Settlement Arrangement shall not contain terms providing for a disposal of the debtor’s interest in the principal private residence unless:

• (a) the debtor has obtained independent legal advice in relation to such disposal or, having been advised by the personal insolvency practitioner to obtain such legal advice, has declined to do so; and

• (b) to the extent that the provisions of the Family Home Protection Act 1976 or the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 apply to the property, all relevant provisions of those Acts are complied with.

70. Debt Settlement Arrangement: Calling of creditors’ meeting.

70.— (1) Where a personal insolvency practitioner has prepared a proposal for a Debt Settlement Arrangement and the debtor has consented to that proposal and the calling of a creditors’ meeting, the personal insolvency practitioner shall arrange for the holding of a meeting of the creditors of the debtor for the purpose of considering the proposal for a Debt Settlement Arrangement.

• (2) When calling a creditors’ meeting under this section, the personal insolvency practitioner shall do so in accordance with any regulations under section 74 and, in any case, shall—

• (a) give each creditor at least 14 days written notice of the meeting and the date on which, and time and place at which, the meeting will be held,

• (b) ensure that the notice referred to in paragraph (a) is accompanied by a copy of each of the documents referred to in section 71, and

• (c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in section 71 with the Insolvency Service.

• (3) Where a creditors’ meeting referred to in subsection (1) does not take place before the expiry of the protective certificate, the Debt Settlement Arrangement procedure shall be deemed to have come to an end.

71. Debt Settlement Arrangement: Documents to be given to creditors and the Insolvency Service when calling a creditors’ meeting.

71.— (1) The documents referred to in section 70(2)(b) F64[and section 74A(2)(b) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015)] are—

• (a) a completed statement of the debtor’s financial affairs, showing the debtor’s position of insolvency, in the form of the Prescribed Financial Statement;

• (b) a document containing the terms of the proposal for a Debt Settlement Arrangement;

• (c) a statement by the personal insolvency practitioner to the effect that—

• (i) he or she has been instructed by the debtor to act as personal insolvency practitioner in connection with the Debt Settlement Arrangement procedure, he or she has consented to so act and that he or she is a person entitled to act as a personal insolvency practitioner,

• (ii) he or she has advised the debtor in accordance with section 52 of the debtor’s options for managing the debtor’s financial difficulties,

• (iii) he or she is not aware of any reasonable grounds to believe that the information contained in the debtor’s Prescribed Financial Statement is not complete and accurate, and

• F65[(iv) he or she is of the opinion that—

• (I) the debtor satisfies the eligibility criteria for the proposal of a Debt Settlement Arrangement specified in section 57,

• (II) the proposed Debt Settlement Arrangement complies with the mandatory requirements referred to in section 65(2), and

• (III) the proposed Debt Settlement Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or a secured debt or otherwise affect such a debt;]

• (d) a report of the personal insolvency practitioner—

• (i) describing the outcome for creditors and, having regard to the financial circumstances of the debtor, whether or not the proposed Debt Settlement Arrangement represents a fair outcome for the creditors, and indicating, where relevant, how that financial outcome for creditors, (whether individually or as a member of a class of creditors) under the terms of the proposal is likely to be better than the estimated financial outcome for such creditors if the debtor were to be adjudicated a bankrupt (having regard to, amongst other things, the estimated costs of the bankruptcy process), and

• (ii) indicating whether or not he or she is of the opinion that the debtor is reasonably likely to be able to comply with the terms of the proposed Debt Settlement Arrangement.

• F66[(2) Where a debtor’s financial position has materially changed in the period between the completion by him or her of a Prescribed Financial Statement under section 50 and the giving of a notice under section 70(2) or, as the case may be, section 74A(2) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015)—

• (a) the debtor shall inform the personal insolvency practitioner of that fact and of the nature of such change, and

• (b) the personal insolvency practitioner shall, if he or she considers that the change necessitates the completion of a new Prescribed Financial Statement, assist the debtor in completing such a new statement, and where those circumstances arise a reference in this section to the Prescribed Financial Statement shall be construed as a reference to the new Prescribed Financial Statement.

• (3) Where a new Prescribed Financial Statement is completed pursuant to subsection (2), the personal insolvency practitioner shall furnish a copy of that Statement to the Insolvency Service.]

72. Debt Settlement Arrangement: Conduct of creditors’ meeting.

72.— (1) A creditors’ meeting F67[called in accordance with section 70] shall be conducted in accordance with section 74 and any regulations made under that section.

• (2) The personal insolvency practitioner may, where he or she believes it is in the interests of obtaining approval of a proposed Debt Settlement Arrangement by the creditors at the meeting, adjourn the meeting and, with the consent in writing of the debtor, shall prepare an amended proposal for a Debt Settlement Arrangement.

• (3) Where the personal insolvency practitioner prepares an amended proposal for a Debt Settlement Arrangement pursuant to subsection (2) he or she shall—

• (a) notify the debtor of the date on which, and time and place at which, the adjourned meeting will be held,

• (b) at least 7 days before the day of the adjourned meeting, unless all of the creditors agree in writing to receive a shorter period of notice, notify each creditor of the date on which, and time and place at which, the adjourned meeting will be held,

• (c) ensure that the notices referred to in paragraphs (a) and (b) are accompanied by a copy of the amended proposal, and

• (d) lodge a copy of the notice referred to in paragraph (b) and a copy of the amended proposal with the Insolvency Service.

• (4) An adjournment for the purpose of preparing an amended proposal for a Debt Settlement Arrangement pursuant to subsection (2) may occur once only in the course of the period of validity of a protective certificate (including any extension of such period).

• (5) Subject to subsection (6), creditors at a meeting under this section, having considered a proposal for a Debt Settlement Arrangement shall vote, in accordance with section 73, either by voting in favour or against the approval of the proposed Debt Settlement Arrangement.

• (6) Subject to subsection (2), the proposal for a Debt Settlement Arrangement may, before the proposal has been voted upon, be subject to a proposal for a modification where the modification addresses an ambiguity or rectifies an error in the proposed Debt Settlement Arrangement and where—

• (a) the modification has been proposed by a creditor or the personal insolvency practitioner, and

• (b) the debtor gives his or her written consent to the modification.

• (7) Where, on the taking of a vote under subsection (5), the proposal is not approved F68[or deemed to have been approved] in accordance with section 73, the Debt Settlement Arrangement procedure shall be deemed to have come to an end, and the protective certificate issued under section 61 shall cease to have effect.

• (8) F69[…]

73. Debt Settlement Arrangement: Voting at creditors’ meeting.

73.— (1) A vote held under section 72(5) shall be held in accordance with this section and regulations under section 74.

• (2) The voting rights exercisable by a creditor at a creditors’ meeting shall be proportionate to the amount of the debt due by the debtor to the creditor on the day the protective certificate is issued.

• (3) F70[…]

• (4) A creditor who is a connected person of the debtor may not vote in favour of a proposal for a Debt Settlement Arrangement at a creditors’ meeting.

• (5) Subject to any regulations made under section 74 relating to proxies, for the purposes of this section, only the person who appears to the personal insolvency practitioner to be the owner of the debt (or an agent acting on behalf of that person) shall be entitled to receive notices required to be sent to a creditor under this Chapter or to vote at the creditors’ meeting.

• F71[(6) A proposal for a Debt Settlement Arrangement shall be considered as having been approved by a creditors’ meeting held under this Chapter where creditors representing not less than 65 per cent of the total amount of the debtor’s debts due to the creditors participating in the meeting and voting have voted in favour of the proposal.]

• (7) F71[Where a vote is held under section 72(5) and no creditor votes,] the proposed Debt Settlement Arrangement shall be deemed to have been approved under this section.

74. Debt Settlement Arrangement: Procedures for the conduct of creditors’ meetings.

74.— (1) The Minister may make regulations relating to the holding of creditors’ meetings under this Chapter, and without prejudice to the generality of the Minister’s power under this section, such regulations may provide for—

• (a) the holding of a meeting in circumstances where not all of the creditors are present in the same venue,

• (b) the voting process including providing for the communication of creditors’ votes to the personal insolvency practitioner by telephony or electronically, and

• (c) appointment of proxies to vote at such meetings.

• (2) The venue for the holding of a creditors’ meeting shall be situated within the State.

• (3) The period of notice of the meeting of creditors may be waived or abridged where the consent of all the creditors to such waiver or abridgement is given in writing.

74A. F72[Approval of proposed Debt Settlement Arrangement where only one creditor

74A. (1) Where—

• (a) a personal insolvency practitioner has prepared a proposal for a Debt Settlement Arrangement and the debtor has consented to that proposal, and

• (b) only one creditor would be entitled to vote at a creditors’ meeting held under this Chapter (whether in respect of one or more debts),

the procedures specified in this section, and not those specified in sections 70, 72 and 73, shall apply in relation to the approval by that creditor of the proposal for a Debt Settlement Arrangement.

• (2) A personal insolvency practitioner referred to in subsection (1) shall—

• (a) give written notice to the creditor that the proposal for a Debt Settlement Arrangement has been prepared and that the creditor may, within the period specified in subsection (6) (a), notify the personal insolvency practitioner in writing of his or her approval or otherwise of that proposal,

• (b) ensure that the notice referred to in paragraph (a) is accompanied by a copy of each of the documents referred to in section 71, and

• (c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in paragraph (b) with the Insolvency Service.

• (3) A personal insolvency practitioner who has complied with subsection (2) may, where he or she believes it is in the interests of obtaining approval of a proposed Debt Settlement Arrangement by the creditor and with the consent in writing of the debtor, prepare an amended proposal for a Debt Settlement Arrangement.

• (4) Where the personal insolvency practitioner prepares an amended proposal for a Debt Settlement Arrangement pursuant to subsection (3) he or she shall—

• (a) give written notice to the creditor that he or she may, within the period specified in subsection (6)(b), notify the personal insolvency practitioner in writing of his or her approval or otherwise of the amended proposal, which notice shall be accompanied by a copy of the amended proposal,

• (b) give the debtor a copy of the documents referred to in paragraph (a), and

• (c) lodge a copy of the documents referred to in paragraph (a) with the Insolvency Service.

• (5) A proposal for a Debt Settlement Arrangement may, before the creditor has notified the personal insolvency practitioner of his or her approval or otherwise of the proposal, be subject to a proposal for a modification where the modification addresses an ambiguity or rectifies an error in the proposed Debt Settlement Arrangement and where—

• (a) the modification has been proposed by the creditor or the personal insolvency practitioner, and

• (b) the debtor gives his or her written consent to the modification.

• (6) A creditor to whom this section applies shall notify the personal insolvency practitioner in writing of his or her approval or otherwise of a proposal for a Debt Settlement Arrangement within—

• (a) 14 days of the giving to him or her of the notice under subsection (2), or

• (b) if later, 7 days of the date on which a notice under subsection (4) (a) is first given to him or her.

• (7) A proposal for a Debt Settlement Arrangement to which this section applies—

• (a) shall be considered as having been approved by the creditor concerned where that creditor notifies the personal insolvency practitioner in accordance with subsection (6) of the creditor’s approval of that proposal, and

• (b) where that creditor fails to comply with subsection (6), shall be deemed to have been approved by the creditor concerned.

• (8) Where a creditor to whom this section applies notifies the personal insolvency practitioner in accordance with subsection (6) that he or she does not approve of the proposal, the Debt Settlement Arrangement procedure shall be deemed to have come to an end and the protective certificate issued under section 61 shall cease to have effect.

• (9) Where a personal insolvency practitioner fails to give the creditor a notice under subsection (2) before the expiry of the protective certificate, the Debt Settlement Arrangement procedure shall be deemed to have come to an end.

• (10) Where this section applies, a reference in section 61(13) to section 73 shall be construed as a reference to this section.]

75. Steps to be taken by personal insolvency practitioner following approval of proposal for Debt Settlement Arrangement.

75.—F73[(1) Where a Debt Settlement Arrangement is approved or, as the case may be, deemed to have been approved at a creditors’ meeting in accordance with section 73, the personal insolvency practitioner shall as soon as practicable after the meeting has concluded notify the Insolvency Service and each creditor concerned of that approval or, as the case may be, deemed approval, which notification shall be accompanied by—

• (a) (i) subject to subparagraph (ii), a certificate with the result of the vote taken at the creditors’ meeting, identifying the number of votes, in value of the creditors present and voting, in favour of and against the proposed Debt Settlement Arrangement, and stating that the requisite proportion of creditors referred to in section 73(6) has approved the proposal for a Debt Settlement Arrangement, or

• (ii) where section 73(7) applies to the proposal, a certificate to that effect,

• (b) a copy of the approved Debt Settlement Arrangement, and

• (c) a statement by the personal insolvency practitioner to the effect that he or she is of the opinion that—

• (i) the debtor satisfies the eligibility criteria for the proposal of a Debt Settlement Arrangement specified in section 57,

• (ii) the approved Debt Settlement Arrangement complies with the mandatory requirements referred to in section 65(2), and

• (iii) the approved Debt Settlement Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or a secured debt or otherwise affect such a debt.]

• F74[(1A) Where a Debt Settlement Arrangement is approved or, as the case may be, deemed to have been approved in accordance with section 74A(7) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015), the personal insolvency practitioner shall as soon as practicable thereafter notify the Insolvency Service and each creditor concerned of that approval or, as the case may be, deemed approval, which notification shall be accompanied by—

• (a) a certificate stating that section 74A applies to the proposed Debt Settlement Arrangement and that the proposal concerned has been approved or, as the case may be, deemed to have been approved in accordance with section 74A(7) by the only creditor entitled to vote on the proposal,

• (b) a copy of the approved Debt Settlement Arrangement, and

• (c) a statement by the personal insolvency practitioner to the effect that he or she is of the opinion that—

• (i) the debtor satisfies the eligibility criteria for the proposal of a Debt Settlement Arrangement specified in section 57,

• (ii) the approved Debt Settlement Arrangement complies with the mandatory requirements referred to in section 65(2), and

• (iii) the approved Debt Settlement Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or a secured debt or otherwise affect such a debt.]

• (2) The personal insolvency practitioner shall, in addition to the documents referred to in subsection (1) F75[or, as the case may be, subsection (1A) (inserted by section 8(b) of the Personal Insolvency (Amendment) Act 2015),] also send a notice to each creditor indicating that he or she may make objection to the coming into effect of the Debt Settlement Arrangement by lodging a notice of objection with the appropriate court, within 14 days of the date of the sending of that notice.

• (3) A creditor may lodge a notice of objection with the appropriate court within 14 days of the date of the sending by the personal insolvency practitioner of the notice referred to in subsection (2) and shall at the same time send a copy of the notice of objection to—

• (a) the Insolvency Service, and

• (b) the personal insolvency practitioner.

76. Steps to be taken by Insolvency Service following notification of approval of Debt Settlement Arrangement by personal insolvency practitioner under section 75.

76.—F76[(1) On receipt of a notification and accompanying documents from the personal insolvency practitioner pursuant to section 75(1) (as amended by section 71 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013) F77[or, as the case may be, section 75(1A) (inserted by section 8(b) of the Personal Insolvency (Amendment) Act 2015)], the Insolvency Service shall—

• (a) notify the appropriate court and furnish to that court a copy of the notification and documents, and

• (b) record the approval of the Debt Settlement Arrangement concerned in the Register of Debt Settlement Arrangements.]

• (2) Where the notification of the personal insolvency practitioner is received by the Insolvency Service before the expiry of the period of the protective certificate, such protective certificate shall continue in force until the Debt Settlement Arrangement comes into effect or all objections lodged with the appropriate court pursuant to section 75(3) have been determined by the court.

77. Determination of objection lodged under section 75.

77.— (1) The grounds on which objection may be made to the coming into effect of the Debt Settlement Arrangement are those specified in section 87.

• (2) The hearing of an objection lodged under section 75(3) shall be heard with all due expedition.

• (3) Where the appropriate court upholds the objection to the Debt Settlement Arrangement, the Debt Settlement Arrangement procedure shall be deemed to have come to an end, and the protective certificate issued under section 61 shall cease to have effect.

78. Coming into effect of Debt Settlement Arrangement.

78.— (1) Where—

• (a) no objection is lodged by a creditor with the appropriate court within 14 days of the giving of the notice referred to in section 75, or

• (b) an objection is lodged with the appropriate court and the matter is determined by the court on the basis that the objection should not be allowed,

the appropriate court shall proceed to consider, in accordance with this section, whether to approve the coming into effect of the Debt Settlement Arrangement.

• (2) For the purposes of its consideration under subsection (1), the appropriate court shall consider F78[the notification and documents] furnished to it under section 76(1) and, subject to subsection (3)—

• (a) shall approve the coming into effect of the Arrangement, if satisfied that the—

• (i) eligibility criteria specified in section 57 have been satisfied,

• (ii) mandatory requirements referred to in section 65(2) have been complied with,

• (iii) Debt Settlement Arrangement does not contain any terms that would release the debtor from an excluded debt, an excludable debt (other than a permitted debt) or a secured debt or otherwise affect such a debt, and

• F79[(iv) proposal for a Debt Settlement Arrangement, as the case may be—

• (I) has been approved by the requisite proportion of creditors referred to in section 73(6),

• (II) is one to which section 73(7) applies, or

• (III) has been approved or, as the case may be, deemed to have been approved in accordance with section 74A(7) (inserted by section 7 of the Personal Insolvency (Amendment) Act 2015),]

and

• (b) if not so satisfied, shall refuse to approve the coming into effect of the Debt Settlement Arrangement.

• F78[(3) Where the appropriate court, for the purpose of its arriving at a decision under subsection (2), requires—

• (a) further information, it may request the Insolvency Service to provide this information, and the Insolvency Service shall provide the information requested to the court and to the personal insolvency practitioner concerned, or

• (b) further information or evidence, it may hold a hearing, which hearing shall be on notice to the Insolvency Service and the personal insolvency practitioner concerned.]

• (4) F80[…]

• F79[(5) For the purposes of subsection (2), the appropriate court may accept—