Personal Insolvency Act 2012

• (d) a Personal Insolvency 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;

• (e) a Personal Insolvency 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;

• (f) a Personal Insolvency Arrangement shall—

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

• F99[(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 92 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;

• (g) a Personal Insolvency 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;

• (h) a Personal Insolvency Arrangement shall not require that the debtor dispose of his or her interest in the debtor’s principal private residence or to cease to occupy such residence unless the provisions of section 104(3) apply;

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

• (j) a Personal Insolvency Arrangement shall provide that the review referred to in paragraph (i) 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;

• (k) subject to sections 102 to 105, a Personal Insolvency Arrangement shall make provision for the manner in which security held by a secured creditor is to be treated; and

• (l) the terms of a Personal Insolvency Arrangement shall specify the circumstances where the personal insolvency practitioner shall be obliged to propose a variation of the Personal Insolvency Arrangement in accordance with section 119.

• (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)(e), 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 Personal Insolvency Arrangement, regard shall be had to any guidelines issued under section 23.

100. Non-exhaustive list of options as respects payments for inclusion in Personal Insolvency Arrangement.

100.— (1) Subject to the provisions of this Act, a proposal for a Personal Insolvency 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 Personal Insolvency 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 or under the supervision of the personal insolvency practitioner and the payment of the proceeds of such sale to creditors; or

• (f) in respect of secured debts, subject to sections 102 to 105, an arrangement for the treatment of the security and the satisfaction or restructuring of the secured debt.

• (3) Unless provision is otherwise made in the Personal Insolvency Arrangement, and subject to section 101, the arrangement shall provide for payments to creditors of the same class to be made on a pari passu basis, and where so otherwise provided the Personal Insolvency Arrangement shall specify the reasons for such provision being made.

• (4) Unless provision is otherwise made in the Personal Insolvency Arrangement, where an Arrangement provides for payments to a creditor to whom section 92 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 99(2)(f) 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 Personal Insolvency Arrangement may be secured by a charge 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 Personal Insolvency Arrangement may include provisions relating to payments other than those specified in this section.

101. Preferential debts in Personal Insolvency Arrangement.

101.— (1) Unless the creditor concerned otherwise agrees in writing and provision is so made in the terms of the Personal Insolvency 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 Personal Insolvency 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 Personal Insolvency Arrangement.

• (4) Subsection (1) shall not affect the operation of section 103 unless the relevant secured creditors otherwise agree.

• (5) 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.

102. Secured creditors and Personal Insolvency Arrangement.

102.— (1) Where a secured creditor has been notified by the personal insolvency practitioner that a protective certificate has been issued in respect of the debtor the secured creditor concerned shall furnish to the personal insolvency practitioner an estimate, made in good faith, of the market value of the security and the creditor concerned may also indicate, a preference as to how, having regard to subsection (3) and sections 103 to 105, that creditor wishes to have the security and secured debt treated under the Personal Insolvency Arrangement.

• (2) In formulating the proposal for a Personal Insolvency Arrangement the personal insolvency practitioner shall—

• (a) have regard to subsection (3) and sections 103 to 105, and

• (b) to the extent that he or she considers it reasonable to do so, have regard to the preference of the secured creditor furnished under subsection (1) as to the treatment of the security and the secured debt.

• (3) Subject to sections 103 to 105, the terms of a Personal Insolvency Arrangement may provide for the manner in which the security for a secured debt is to be treated which may include:

• (a) the sale or any other disposition of the property or asset the subject of the security;

• (b) the surrender of the security to the debtor; or

• (c) the retention by the secured creditor of the security.

• (4) Failure by the secured creditor to furnish valuation and the indication of preference relating to the security under subsection (1) within the period specified by the personal insolvency practitioner or such further period as may be offered by him or her shall not prevent the personal insolvency practitioner from formulating a proposal for a Personal Insolvency Arrangement.

• (5) Where a Personal Insolvency Arrangement provides for the sale or other disposal of the property which is the subject of the security for a secured debt, and the realised value of that property is less than the amount due in respect of the secured debt, the balance due to the secured creditor shall abate in equal proportion to the unsecured debts covered by the Personal Insolvency Arrangement and shall be discharged with them on completion of the obligations specified in the Personal Insolvency Arrangement.

• (6) Without prejudice to the generality of section 100 or subsections (1) to (3) and subject to sections 103 to 105, a Personal Insolvency Arrangement may include one or more of the following terms in relation to the secured debt:

• (a) that the debtor pay interest and only part of the capital amount of the secured debt to the secured creditor for a specified period of time which shall not exceed the duration of the Personal Insolvency Arrangement;

• (b) that the debtor make interest-only payments on the secured debt for a specified period of time which shall not exceed the duration of the Personal Insolvency Arrangement;

• (c) that the period over which the secured debt was to be paid or the time or times at which the secured debt was to be repaid be extended by a specified period of time;

• (d) that the secured debt payments due to be made by the debtor be deferred for a specified period of time which shall not exceed the duration of the Personal Insolvency Arrangement;

• (e) that the basis on which the interest rate relating to the secured debt be changed to one that is fixed, variable or at a margin above or below a reference rate;

• (f) that the principal sum due on the secured debt be reduced provided that the secured creditor be granted a share in the debtor’s equity in the property the subject of the security;

• (g) that the principal sum due on the secured debt be reduced but subject to a condition that where the property the subject of the security is subsequently sold for an amount greater than the value attributed to that property for the purposes of the Personal Insolvency Arrangement, the secured creditor’s security will continue to cover such part of the difference between the attributed value and the amount for which the property is sold as is specified in the terms of the Personal Insolvency Arrangement;

• (h) that arrears of payments existing at the inception of the Personal Insolvency Arrangement and payments falling due during a specified period thereafter be added to the principal amount due in respect of the secured debt; and

• (i) that the principal sum due in respect of the secured debt be reduced to a specified amount.

• (7) Subject to subsections (3)(b), (9) and (10) a creditor who has registered a judgment mortgage against a debtor more than three months before F100[the issue by the appropriate court] of the protective certificate is a secured creditor for the purposes of a Personal Insolvency Arrangement.

• (8) Where requested by the personal insolvency practitioner to do so, a secured creditor shall provide proof of the existence and nature of the security with respect to the relevant secured debt, in default of which, the personal insolvency practitioner may treat the debt as unsecured debt for the purposes of this Chapter.

• (9) Notwithstanding subsection (1) where the market value of the security held by a secured creditor in respect of a secured debt is less than 10 per cent of the amount of that secured debt, the secured creditor may, upon giving notice in writing to the personal insolvency practitioner, elect to be treated as an unsecured creditor for the purposes of this Chapter, other than this subsection and subsection (10).

• (10) Where the personal insolvency practitioner receives notice of an election referred to in subsection (9), the personal insolvency practitioner shall formulate the proposal for the Personal Insolvency Arrangement on terms providing for the surrender of the security to the debtor and shall treat the creditor as an unsecured creditor for the purposes of this Chapter, other than this subsection and subsection (9).

• (11) Without prejudice to section 103, where a Personal Insolvency Arrangement includes terms providing for a reduction of the amount of debt (including principal, interest and arrears) secured by the security as of the date of the issue of the protective certificate to a specified amount, the terms of the Arrangement shall, unless the relevant secured creditor agrees otherwise, also include a term providing that the amount of such reduction shall:

• (a) rank equally with, and abate in equal proportion to, the unsecured debts covered by the Arrangement; and

• (b) be discharged with those unsecured debts on completion of the obligations specified in the Arrangement.

103. Protections for secured creditors in Personal Insolvency Arrangement.

103.— (1) A Personal Insolvency Arrangement which includes terms providing for the sale or other disposal of the property the subject of the security shall, unless the relevant secured creditor agrees otherwise, include a term providing that the amount to be paid to the secured creditor shall amount at least to—

• (a) the value of the security determined in accordance with section 105; or

• (b) the amount of the debt (including principal, interest and arrears) secured by the security as of the date of the issue of the protective certificate,

whichever is the lesser.

• (2) A Personal Insolvency Arrangement which includes terms providing for—

• (a) retention by a secured creditor of the security held by that secured creditor, and

• (b) a reduction of the principal sum due in respect of the secured debt due to that secured creditor to a specified amount,

shall not, unless the relevant secured creditor agrees otherwise, specify the amount of the reduced principal sum referred to in paragraph (b) at an amount less than the value of the security determined in accordance with section 105.

• (3) A Personal Insolvency Arrangement which includes terms involving—

• (a) retention by a secured creditor of the security held by that secured creditor, and

• (b) a reduction of the principal sum due in respect of the secured debt due to that secured creditor to a specified amount,

shall, unless the relevant secured creditor agrees otherwise, also include terms providing that any such reduction of the principal sum is subject to the condition that, subject to subsections (4) to (13), where the property the subject of the security is sold or otherwise disposed of for an amount or at a value greater than the value attributed to the security in accordance with section 105, the debtor shall pay to the secured creditor an amount additional to the reduced principal sum calculated in accordance with subsection (4) or such greater amount as is provided for under the terms of the Personal Insolvency Arrangement.

• (4) Subject to subsections (5) to (13), the additional amount referred to in subsection (3) shall be the lesser of—

• (a) the entire of the difference between the value of the property on disposition and the value attributed to the security in accordance with section 105, and

• (b) the amount of the reduction in the principal sum due in respect of the secured debt under the Personal Insolvency Arrangement as referred to in subsection (3)(b).

• (5) For the purposes of subsection (4), any portion of the increase in the value of the property attributable to significant improvements made to (or other measures taken which have made a material contribution to the increase in the value of) the property over which the debt is secured which were made subsequent to the valuation of the security for the purposes of the Personal Insolvency Arrangement shall be disregarded in calculating the additional amount payable by the debtor.

• (6) Subsection (5) shall not apply unless the secured creditor has given his or her consent in writing to the improvements or other measures concerned, which consent shall not be unreasonably withheld.

• (7) For the purposes of subsection (4), any payment or transfer of assets to the secured creditor pursuant to the Personal Insolvency Arrangement properly attributable to a reduction of the principal sum due in respect of the secured debt shall be deducted from the additional amount referred to in subsection (3).

• (8) For the purposes of subsection (4), the expenses and costs borne by the debtor in connection with the sale or other disposal of the property shall, to the extent that those costs and expenses are of a type and amount normally payable by the vendor of property of that nature, be deducted from the value attributable to the property on such sale or disposal.

• (9) The obligation to pay an additional amount arising by virtue of this section shall not apply where the value of the property on its sale or other disposal is less than the amount of the debt secured by the security (other than any additional amount secured by virtue of subsection (10)) immediately prior to such sale or other disposition of the property.

• (10) Any additional amount payable by virtue of this section shall stand secured in the same manner and with the same priority as the principal sum referred to in subsection (3)(b).

• (11) The obligation to pay an additional amount arising by virtue of this section shall cease—

• (a) on the expiry of the period of 20 years commencing on the date on which the Personal Insolvency Arrangement comes into effect, or

• (b) on the day on which the debtor is scheduled or permitted to fully discharge the amount secured by the security (or such later date as may be specified for so doing in the Personal Insolvency Arrangement) and does so discharge his or her indebtedness,

whichever first occurs.

• (12) Unless otherwise provided for under the terms of the Personal Insolvency Arrangement, where a property in respect of which subsection (3) applies is the subject of security held by more than one secured creditor—

• (a) any additional amounts payable by virtue of this section to the secured creditors shall be paid in order of the priority of the security held by each secured creditor, and

• (b) if the security held by a secured creditor is not ranked first in priority, the obligation to pay an additional amount to that creditor arising by virtue of this section shall apply only if and to the extent that the sum of the additional amounts payable to secured creditors holding security with higher ranking priority than the secured creditor concerned is less than the additional amount calculated in accordance with subsection (4).

• (13) For the purposes of subsection (3)—

• (a) without prejudice to the generality of that subsection, a disposal by a debtor of property the subject of security held by a secured creditor shall include the voluntary grant by the debtor of security over that property to any person other than that secured creditor, including any such grant of security in connection with what is commonly known as a refinancing of the existing secured debt, and

• (b) a debtor shall not be considered to dispose of property the subject of security held by a secured creditor where the debtor leases or licenses the property to any person for a term of less than 20 years.

104. Principal private residence in Personal Insolvency Arrangement.

104.— (1) In formulating a proposal for a Personal Insolvency 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 subsection (2), 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 Personal Insolvency Arrangement on terms that will not require the debtor to cease to occupy his or her principal private residence.

• (4) A Personal Insolvency 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.

105. Valuation of security.

105.— (1) Subject to the provisions of this section the value of security in respect of secured debt for the purposes of this Chapter shall be the market value of the security determined by agreement between the personal insolvency practitioner, the debtor and the relevant secured creditor.

• (2) Where the personal insolvency practitioner does not accept a secured creditor’s estimate of the value, if any, of the security furnished by the secured creditor under section 102, the debtor, the personal insolvency practitioner and the secured creditor shall in good faith endeavour to agree the market value for the security having regard to any matter relevant to the valuation of security, including the matters specified in subsection (5).

• (3) In the absence of agreement as to the value of the security, the personal insolvency practitioner, the debtor and the relevant secured creditor shall appoint an appropriate independent expert to determine the market value for the security having regard to any matter relevant to the valuation of security, including the matters specified in subsection (5).

• (4) Where the personal insolvency practitioner, the debtor and the secured creditor are unable to agree as to the independent expert to be appointed under subsection (3) the issue may be referred by any of them to the Insolvency Service which shall appoint such independent expert as it considers appropriate to determine the market value of the security concerned having regard to any matter relevant to the valuation of security, including the matters specified in subsection (5), and the valuation carried out by such expert shall be binding on the personal insolvency practitioner, the debtor and the secured creditor concerned.

• (5) The matters referred to in subsections (2) to (4) as the matters specified in subsection (5) are:

• (a) the type of property the subject of the security;

• (b) the priority of the security;

• (c) the costs of disposing of the property the subject of the security;

• (d) the price at which similar property to that which is the subject of the security has been sold within the 12 months prior to the issue of the protective certificate;

• (e) the date of the most recent valuation or transaction with respect to the property the subject of the security and the value attributed to the property in respect of that valuation or transaction;

• (f) the value attributed to the property the subject of the security in the debtor’s accounting records (if any);

• (g) the value attributed to the security in the secured creditor’s accounting records (if any);

• (h) whether the market for the type of property the subject of the security is or has been subject to significant changes in conditions;

• (i) data made available to the public by the Property Services Regulatory Authority pursuant to Part 12 of the Property Services (Regulation) Act 2011 and which relate to property similar to the property the subject of the security; and

• (j) any relevant statistical index relating to the valuation of the same or similar types of property as the property the subject of the security.

• (6) In this section “market value”—

• (a) as respects property the subject of security for a secured debt, means the price which that property might reasonably be expected to fetch on a sale in the open market;

• (b) as respects security for a secured debt, means the amount that might reasonably be expected to be available to discharge that secured debt, in whole or in part, following realisation of the security by the secured creditor concerned and, where permitted by the terms of the security or otherwise, after deducting all relevant costs and expenses in connection with the realisation of the security.

• (7) The creditor concerned and the personal insolvency practitioner shall each pay 50 per cent of the costs of carrying out the valuation by the independent expert pursuant to subsection (3) or (4).

• (8) The amount paid by the personal insolvency practitioner pursuant to subsection (7) shall be treated as an outlay for the purposes of the Personal Insolvency Arrangement.

• (9) For the purposes of this section, the personal insolvency practitioner, the debtor, the secured creditor concerned and any independent expert shall be entitled to assume, in the absence of any clear evidence to the contrary, that the market value of the security which is a first charge is the lesser of—

• (a) an amount equal to the market value of the property the subject of the security, or

• (b) unless the nature of the security and the property concerned would make it unreasonable to do so, an amount equal to the market value of the property the subject of the security less an adjustment to that value as respects the costs and expenses which would normally be necessarily incurred by a secured creditor in the realisation of a security of a similar kind to that of the security concerned, provided that the adjustment is no greater than 10 per cent of the market value of the property the subject of the security.

106. Calling of creditors’ meeting.

106.— (1) Where a personal insolvency practitioner has prepared a proposal for a Personal Insolvency 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 Personal Insolvency Arrangement.

• (2) When calling a creditors’ meeting under this section, the personal insolvency practitioner shall do so in accordance with any regulations made under section 111 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 107, and

• (c) lodge a copy of the notice referred to in paragraph (a) and the documents referred to in section 107 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 Personal Insolvency Arrangement procedure shall be deemed to have come to an end.

107. Documents to be given to creditors and the Insolvency Service when summoning a creditors’ meeting.

107.— (1) The documents referred to in section 106(2)(b) F101[and section 111A(2)(b) (inserted by section 17 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) the terms of the proposal for a Personal Insolvency Arrangement;

• (c) statements 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 Personal Insolvency 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 other than complete and accurate;

• F102[(iv) he or she is of the opinion that—

• (I) the debtor satisfies the eligibility criteria for the proposal of a Personal Insolvency Arrangement specified in section 91,

• (II) the proposed Personal Insolvency Arrangement complies with the mandatory requirements referred to in section 99(2), and

• (III) the proposed Personal Insolvency Arrangement does not contain any terms that would release the debtor from an excluded debt or an excludable debt (other than a permitted 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 Personal Insolvency Arrangement represents a fair outcome for the creditors, and indicating, where relevant, how the 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 considers that the debtor is reasonably likely to be able to comply with the terms of the proposed Personal Insolvency Arrangement.

• F103[(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 106(2) or, as the case may be, section 111A(2) (inserted by section 17 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.

108. Voting rights at creditors’ meetings.

108.— (1) A vote held at a creditors’ meeting to consider a proposal for a Personal Insolvency Arrangement shall be held in accordance with this section, section 110 and regulations made under section 111.

• (2) Subject to subsection (1), the voting rights exercisable by a creditor at a creditors’ meeting to consider a proposal for a Personal Insolvency Arrangement 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) In the case of a secured debt, where:

• (a) the value of security held by a creditor who is a secured creditor is determined, pursuant to section 105, to be less than the amount of the secured debt due to the creditor on the day the protective certificate is issued; and

• (b) the proposed Personal Insolvency Arrangement provides for all or part (“relevant portion”) of that secured debt to:

• (i) rank equally with, and abate in equal proportion to, the unsecured debts covered by the Arrangement; and

• (ii) be discharged with those unsecured debts on completion of the obligations specified in the Arrangement,

then, the relevant portion of that secured debt shall, for the purposes of this section (other than this subsection), section 110 and regulations made under section 111, be treated as unsecured and the creditor concerned may vote in respect of the relevant portion of that debt as an unsecured creditor.

• (4) Where a secured creditor consents in writing to the inclusion of terms in the Personal Insolvency Arrangement providing for the surrender to the debtor of his or her security upon the coming into effect of the Arrangement, that creditor shall be treated as an unsecured creditor for the purposes of this section (other than this subsection), section 110 and regulations made under section 111 and shall only be entitled to vote at a creditors’ meeting as an unsecured creditor.

• (5) A creditor who is a connected person as respects the debtor may not vote in favour of a proposal for a Personal Insolvency Arrangement at a creditors’ meeting but that creditor may vote against the proposal.

• (6) F104[…]

• (7) Subject to any regulations made under section 111, 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.

• F105[(8)
• (a) Where, at the taking of a vote at a creditors’ meeting in accordance with subsection (1), no creditor votes, the proposed Personal Insolvency Arrangement shall be deemed to have been approved under this section.

• (b) Where, at the taking of a vote at a creditors’ meeting in accordance with subsection (1), the proposal is not approved in accordance with that subsection or deemed under paragraph (a) to have been approved, subject to section 115A, the Personal Insolvency Arrangement procedure shall terminate and the protective certificate issued under section 95 shall cease to have effect.]

• (9) F104[…]

109. Conduct of creditors’ meeting for consideration of proposed Personal Insolvency Arrangement.

109.— (1) A creditors’ meeting called in accordance with section 106 shall consider the proposal for a Personal Insolvency Arrangement and, subject to subsection (4), shall vote on the proposal.

• (2) A creditors’ meeting called by the personal insolvency practitioner under section 106 shall, subject to this section, be conducted in accordance with any regulations made under section 111.

• (3) Subject to subsection (4) the proposal for a Personal Insolvency 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 Personal Insolvency Arrangement 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.

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

• (5) Where the personal insolvency practitioner prepares an amended proposal for a Personal Insolvency Arrangement pursuant to subsection (4) 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.

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

110. Proportion of creditors required to approve Personal Insolvency Arrangement.

110.— (1) Subject to subsection (2) a proposed Personal Insolvency Arrangement shall be considered as having been approved by a creditors’ meeting held under this Chapter where—

• (a) F106[…] 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,

• (b) creditors representing more than 50 per cent of the value of the secured debts due to creditors who are—

• (i) entitled to vote, and

• (ii) have voted,

at the meeting as secured creditors have voted in favour of the proposal, and

• (c) creditors representing more than 50 per cent of the amount of the unsecured debts of creditors who—

• (i) are entitled to vote, and

• (ii) have voted,

at the meeting as unsecured creditors have voted in favour of the proposal.

• (2) For the purposes of subsection (1)(b) the value of a secured debt shall be—

• (a) the market value of the security concerned determined in accordance with section 105, or

• (b) the amount of the debt secured by the security on the day the protective certificate is issued,

whichever is the lesser.

111. Procedures for the conduct of creditors meetings.

111.— (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.

111A. F107[Approval of proposed Personal Insolvency Arrangement where only one creditor

111A. (1) Where—

• (a) a personal insolvency practitioner has prepared a proposal for a Personal Insolvency 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 106 and 108 to 111, shall apply in relation to the approval by that creditor of the proposal for a Personal Insolvency Arrangement.

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

• (a) give written notice to the creditor that the proposal for a Personal Insolvency 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 107, 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 Personal Insolvency Arrangement by the creditor and with the consent in writing of the debtor, prepare an amended proposal for a Personal Insolvency Arrangement.

• (4) Where the personal insolvency practitioner prepares an amended proposal for a Personal Insolvency 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 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 Personal Insolvency 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 Personal Insolvency 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 Personal Insolvency 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 Personal Insolvency 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, subject to section 115A, the Personal Insolvency Arrangement procedure shall be deemed to have come to an end and the protective certificate issued under section 95 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 Personal Insolvency Arrangement procedure shall be deemed to have come to an end.

• (10) Where this section applies, a reference in section 95(13) to section 110 shall be construed as a reference to this section.]

112. Steps to be taken by personal insolvency practitioner following approval of proposal for Personal Insolvency Arrangement.

112.—F108[(1) Where a Personal Insolvency Arrangement is approved at a creditors’ meeting in accordance with section 110 or, as the case may be, deemed under section 108 to have been approved, 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 proportions of the respective categories of votes cast by those voting at the creditors’ meeting and stating that the requisite proportions of creditors referred to in section 110(1) have approved the proposal for a Personal Insolvency Arrangement, or

• (ii) where the proposal is deemed under section 108(8)(a) (as amended by section 15(b) of the Personal Insolvency (Amendment) Act 2015) to have been approved, a certificate to that effect,

• (b) a copy of the approved Personal Insolvency 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 Personal Insolvency Arrangement specified in section 91,

• (ii) the approved Personal Insolvency Arrangement complies with the mandatory requirements referred to in section 99(2), and

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

• F109[(1A) Where a Personal Insolvency Arrangement is approved or, as the case may be, deemed to have been approved in accordance with section 111A(7) (inserted by section 17 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 111A applies to the proposed Personal Insolvency Arrangement and that the proposal concerned has been approved or, as the case may be, deemed to have been approved in accordance with section 111A(7) by the only creditor entitled to vote on the proposal,

• (b) a copy of the approved Personal Insolvency 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 Personal Insolvency Arrangement specified in section 91,

• (ii) the approved Personal Insolvency Arrangement complies with the mandatory requirements referred to in section 99(2), and

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

• (2) The personal insolvency practitioner shall, in addition to the documents referred to in subsection (1) F110[or, as the case may be, subsection (1A) (inserted by section 18(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 Personal Insolvency 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.

113. Steps to be taken by Insolvency Service following notification of approval of Personal Insolvency Arrangement by personal insolvency practitioner under section 112.

113.—F111[(1) On receipt of a notification and accompanying documents from the personal insolvency practitioner pursuant to section 112(1) (as amended by section 85 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013) F112[ or, as the case may be, section 112(1A) (inserted by section 18(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 Personal Insolvency Arrangement concerned in the Register of Personal Insolvency 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 Personal Insolvency Arrangement comes into effect or all objections lodged with the appropriate court pursuant to section 112(3) have been determined by the court.

114. Determination of objection lodged under section 12.

114.— (1) The grounds on which objection may be made to the coming into effect of the Personal Insolvency Arrangement are those specified in section 120.

• (2) The hearing of an objection lodged under section 112(3) shall be heard with all due expedition.

• (3) Where the appropriate court upholds the objection to the Personal Insolvency Arrangement, the Personal Insolvency Arrangement procedure shall be deemed to have come to an end, and the protective certificate issued under section 95 shall cease to have effect.

115. Coming into effect of Personal Insolvency Arrangement.

115.— (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 112, 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 Personal Insolvency Arrangement.

• (2) For the purposes of its consideration under subsection (1), the appropriate court shall consider F113[the notification and documents] furnished to it under section 113(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 91 have been satisfied,

• (ii) mandatory requirements referred to in section 99(2) have been complied with,

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

• F114[(iv) proposal for a Personal Insolvency Arrangement, as the case may be—

• (I) has been approved by the requisite proportions of creditors referred to in section 110(1),

• (II) is one to which section 108(8)(a) (as amended by section 15(b) of the Personal Insolvency (Amendment) Act 2015) applies, or

• (III) has been approved or, as the case may be, deemed to have been approved in accordance with section 111A(7) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015),]

and

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

• F113[(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) F115[…]

• F116[(5) For the purposes of subsection (2), the appropriate court may accept—

• (a) the certificate of the personal insolvency practitioner referred to in section 112(1)(a)(i) (as amended by section 18(a) of the Personal Insolvency (Amendment) Act 2015) as evidence that the proposal for a Personal Insolvency Arrangement has been approved by the requisite proportions of creditors referred to in section 110(1),

• (b) the certificate of the personal insolvency practitioner referred to in section 112(1)(a)(ii) (as amended by section 18(a) of the Personal Insolvency (Amendment) Act 2015) as evidence that the proposal for a Personal Insolvency Arrangement is one to which section 108(8)(a) (as amended by section 15(b) of the Personal Insolvency (Amendment) Act 2015) applies,

• (c) the certificate of the personal insolvency practitioner referred to in section 112(1A) (inserted by section 18(b) of the Personal Insolvency (Amendment) Act 2015) as evidence that the Personal Insolvency Arrangement has been approved or, as the case may be, deemed to have been approved in accordance with section 111A(7) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015), and

• (d) the statement of the personal insolvency practitioner referred to in section 112(1)(c) (inserted by section 85 of the Courts and Civil Law (Miscellaneous Provisions) Act 2013) or, as the case may be, section 112(1A)(c) (inserted by section 18(b) of the Personal Insolvency (Amendment) Act 2015) as evidence of any matter referred to in subsection (2) which is the subject of that statement.]

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

• (a) approves or refuses to approve the coming into effect of the Personal Insolvency Arrangement under this section, or

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

• (7) On receipt of a notification under subsection (6) of the approval of the coming into effect of the Personal Insolvency Arrangement, the Insolvency Service shall register the Personal Insolvency Arrangement in the Register of Personal Insolvency Arrangements.

• (8) The Personal Insolvency Arrangement shall come into effect upon being registered in the Register of Personal Insolvency Arrangements.

115A. F117[Court review of proposed Personal Insolvency Arrangement

115A. (1) Where—

• (a) a proposal for a Personal Insolvency Arrangement is not approved in accordance with this Chapter, and

• (b) the debts that would be covered by the proposed Personal Insolvency Arrangement include a relevant debt,

the personal insolvency practitioner may, where he or she considers that there are reasonable grounds for the making of such an application and if the debtor so instructs him or her in writing, make an application on behalf of the debtor to the appropriate court for an order under subsection (9).

• (2) An application under this section shall be made not later than F118[28 days] after the creditors’ meeting referred to in subsection (16)(a) or, as the case may be, receipt by the personal insolvency practitioner of the notice of the creditor concerned under section 111A(6) (inserted by section 17 of the Personal Insolvency (Amendment) Act 2015), shall be on notice to the Insolvency Service, each creditor concerned and the debtor, and shall be accompanied by—

• (a) a statement of the grounds of the application, which shall include—

• (i) a statement that the proposal for a Personal Insolvency Arrangement has not been approved in accordance with this Chapter,

• (ii) other than where the proposed Personal Insolvency Arrangement is one to which section 111A applies, a statement identifying, by reference to the information referred to in paragraph (d)(i)(II) contained in the certificate furnished under paragraph (d), the creditor or creditors who, having voted in favour of the proposal, should, in the opinion of the personal insolvency practitioner, be considered by the court to be a class of creditors for the purpose of this section, and giving the reasons for this opinion,

• (b) a copy of the proposal for a Personal Insolvency Arrangement,

• (c) a copy of the report of the personal insolvency practitioner referred to in section 107(1)(d),

• (d) a certificate—

• (i) with the result of the vote taken at the creditors’ meeting and identifying—

• (I) the proportions of the respective categories of votes cast by those voting at the creditors’ meeting, and

• (II) the creditors who voted in favour of and against the proposal, and the nature and value of the debt owed to each such creditor,

or

• (ii) where applicable, stating that section 111A applies to the proposal and that the creditor concerned has notified the personal insolvency practitioner under section 111A(6) that the creditor does not approve of the proposal,

and

• (e) 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 Personal Insolvency Arrangement specified in section 91,

• (ii) the proposed Personal Insolvency Arrangement complies with the mandatory requirements referred to in section 99(2), and

• (iii) the proposed Personal Insolvency Arrangement does not contain any terms that would release the debtor from an excluded debt or an excludable debt (other than a permitted debt) or otherwise affect such a debt.

• (3) A notice to a creditor under subsection (2) shall be accompanied by a notice indicating that he or she may, within 14 days of the date of the sending of the notice, lodge a notice with the appropriate court, setting out whether or not the creditor objects to the application, and the creditor’s reasons for this.

• (4) A creditor who lodges a notice under subsection (3) shall at the same time send a copy of the notice to the Insolvency Service, the personal insolvency practitioner and each creditor concerned.

• (5) Where an application is made under this section F118[, whether before or after] the expiry of the period of the protective certificate, such protective certificate shall continue in force until—

• (a) the Personal Insolvency Arrangement comes into effect under subsection (13), or

• (b) one of the following occurs—

• (i) the time for bringing an appeal against a refusal of the appropriate court to make an order under subsection (9) has expired without any such appeal having been brought,

• (ii) such appeal has been withdrawn, or

• (iii) the appeal has been determined.

• (6) The appropriate court, for the purpose of an application under this section, shall hold a hearing, which hearing shall be on notice to the Insolvency Service, the personal insolvency practitioner and each creditor concerned.

• (7) A hearing under this section shall be held with all due expedition.

• (8) The court shall consider whether to make an order under subsection (9) only where—

• (a) it is satisfied that—

• (i) the eligibility criteria specified in section 91 have been satisfied,

• (ii) the mandatory requirements referred to in section 99 have been complied with, and

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

and

• (b) it considers that, having regard to the information before it, including information contained in a notice under subsection (3), no ground specified in section 120 applies in relation to the debtor or the proposed Arrangement.

• (9) The court, following a hearing under this section, may make an order confirming the coming into effect of the proposed Personal Insolvency Arrangement only where it is satisfied that—

• (a) the terms of the proposed Arrangement have been formulated in compliance with section 104,

• (b) having regard to all relevant matters, including the terms on which the proposed Arrangement is formulated, there is a reasonable prospect that confirmation of the proposed Arrangement will—

• (i) enable the debtor to resolve his or her indebtedness without recourse to bankruptcy,

• (ii) enable the creditors to recover the debts due to them to the extent that the means of the debtor reasonably permit, and

• (iii) enable the debtor—

• (I) not to dispose of an interest in, or

• (II) not to cease to occupy,

all or a part of his or her principal private residence,

• (c) having regard to all relevant matters, including the financial circumstances of the debtor and the matters referred to in subsection (10)(a), the debtor is reasonably likely to be able to comply with the terms of the proposed Arrangement,

• (d) where applicable, having regard to the matters referred to in section 104(2), the costs of enabling the debtor to continue to reside in the debtor’s principal private residence are not disproportionately large,

• (e) the proposed Arrangement is fair and equitable in relation to each class of creditors that has not approved the proposal and whose interests or claims would be impaired by its coming into effect,

• (f) the proposed Arrangement is not unfairly prejudicial to the interests of any interested party, and

• (g) other than where the proposal is one to which section 111A applies, at least one class of creditors has accepted the proposed Arrangement, by a majority of over 50 per cent of the value of the debts owed to the class.

• (10) In considering whether to make an order under subsection (9), the court shall have regard to:

• (a) the conduct, within the 2 years prior to the issue of the protective certificate under section 95, of—

• (i) the debtor in seeking to pay the debts concerned, and

• (ii) a creditor in seeking to recover the debts due to the creditor;

• (b) the following, where details of them are contained in a notice lodged under subsection (3) by a creditor—

• (i) a submission made by the creditor under section 98(1) or an indication given by the creditor under section 102(1) and the date on which such submission was made or indication was furnished, and

• (ii) any alternative option available to the creditor for the recovery of the debt concerned.

• (11) The registrar of the appropriate court shall notify the Insolvency Service and the personal insolvency practitioner concerned where the court makes or refuses to make an order under subsection (9).

• (12) On receipt of a notification under subsection (11) of the making of an order under subsection (9), the Insolvency Service shall register the Personal Insolvency Arrangement concerned in the Register of Personal Insolvency Arrangements.