Personal Insolvency Act 2012

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Appointment of personal insolvency practitioner.

49.— (1) A debtor to whom section 48 applies shall submit to a personal insolvency practitioner a written statement disclosing all of the debtor’s financial affairs, which statement shall include—

(a) such information as may be prescribed in relation to—

(i) his or her creditors,

(ii) his or her debts and other liabilities,

(iii) his or her assets, and

(iv) guarantees (if any) given by the debtor in respect of a debt of another person,

and

(b) such other financial information as may be prescribed.

(2) Following receipt of the information referred to in subsection (1), the personal insolvency practitioner shall hold a meeting with the debtor and—

(a) advise him or her, on the basis of the information, of his or her options for addressing his or her financial difficulties and, in particular whether he or she satisfies the criteria specified in Chapter 3 or 4 , or both, for making a proposal for an arrangement, which advice the personal insolvency practitioner shall confirm in writing to the debtor, and

(b) provide him or her with—

(i) information relating to the procedure involved in, and general effect, including the likely costs, of becoming party to an arrangement,

(ii) information in writing relating to the fee arrangements and other conditions of appointment of the personal insolvency practitioner in the event that he or she is appointed under subsection (3), and

(iii) such other information as may be prescribed.

(3) Where the debtor, following the meeting referred to in subsection (2), wishes to become party to an arrangement, he or she shall appoint a personal insolvency practitioner (whether the personal insolvency practitioner referred to in subsection (1) or another personal insolvency practitioner) to act as his or her personal insolvency practitioner for the purposes of Chapter 3 or 4, as the case may be.

(4) On being appointed under subsection (3), the personal insolvency practitioner shall—

(a) confirm in writing to the debtor that the personal insolvency practitioner has consented to act in the role of personal insolvency practitioner as respects the debtor, and

(b) notify the Insolvency Service of his or her appointment.

(5) Where a personal insolvency practitioner is appointed under subsection (3), he or she shall stand appointed, and the debtor concerned shall not appoint another personal insolvency practitioner under that subsection, until such time as—

(a) the debtor concerned requests him or her to resign from the role of personal insolvency practitioner as respects the debtor, or

(b) the personal insolvency practitioner resigns from that role, on his or her own initiative.

(6) Where a personal insolvency practitioner resigns from the role of personal insolvency practitioner as respects a debtor, he or she shall notify the Insolvency Service of that fact, which notification shall be accompanied by a statement of the reasons for his or her resignation.

(7) Where a personal insolvency practitioner appointed under subsection (3) (“original personal insolvency practitioner”)—

(a) dies,

(b) becomes incapable, through ill-health or otherwise, of performing the functions of a personal insolvency practitioner as respects the debtor,

(c) resigns from the role of personal insolvency practitioner as respects the debtor, or

(d) is no longer entitled to perform the functions of a personal insolvency practitioner under this Act,

the debtor shall, as soon as practicable after becoming aware of that fact, appoint another personal insolvency practitioner to act as his or her personal insolvency practitioner for the purposes of Chapter 3 or 4, as the case may be.

(8) (a) Where paragraph (a), (b) or (c) of subsection (7) applies, the debtor concerned shall, as soon as practicable, inform the Insolvency Service of that fact.

(b) Where a personal insolvency practitioner has been appointed under subsection (7), the personal insolvency practitioner shall, as soon as practicable, inform the Insolvency Service and the creditors concerned of that fact.

(9) Where a personal insolvency practitioner is appointed under subsection (7)—

(a) that appointment shall not affect the validity of anything previously done under this Chapter, Chapter 3 or Chapter 4 , as the case may be, by the original personal insolvency practitioner,

(b) a Debt Settlement Arrangement or a Personal Insolvency Arrangement that is in effect as regards the debtor shall continue to have effect, and

(c) references in this Act to a personal insolvency practitioner, in relation to the debtor concerned, shall be construed as including references to the personal insolvency practitioner so appointed.