AiB Debt Scheme Regulation Changes 2023
Thomson Cooper welcomes the recent further changes to The Bankruptcy and Debt Arrangement Scheme Regulations, under a miscellaneous amendment announced by the Accountant in Bankruptcy (AiB). These will come into force on 6th February 2023. It is hoped that these changes will help people in severe financial difficulty alleviate some of their concerns while potentially giving them a fresh start by having easier access to debt relief.
These changes include:
- Improved access to Minimal Asset Process (MAP) bankruptcy through the removal of the minimum level of debt required. Instead of the £1500 minimum debt level there will now be no minimum debt level.
- Further action to widen the availability of application fee exemption for bankruptcy, including the removal of fees for those applying under the Minimal Asset Process. The criteria for fee exemption for those applying for bankruptcy is extended to include those who, at the date of making the application, have been assessed by the Common Financial Tool as having no surplus income. This is additional to the existing fee exemption that applies to those in receipt of certain benefits.
- More flexible arrangements for payment breaks within the Debt Arrangement Scheme due to issues arising from increased living costs. DAS measures provide for additional criteria under which a deferment of payment of up to 6 months can be accessed. This now includes applications resulting from a reduction in disposable income of 50% or more and it is envisaged that the disposable income will be reduced for the period of deferment.
- An increase in the deposit that must be paid by creditors where AiB is nominated as trustee in bankruptcy following a court petition. Where AiB is appointed trustee following the award of sequestration the fee will be increased from £300 to £750.
The full details of the amendment can be found here: the Bankruptcy and Debt Arrangement Scheme (Miscellaneous Amendment) Regulations 2023.
For more information or if you need help with any problem debt, please contact:
Contact:
Ian Brown
Senior Insolvency Manager
ibrown@thomsoncooper.com
Phone: 01383 628800
Mob: 07519 124657
Richard Gardiner
Partner
rgardiner@thomsoncooper.com
Phone: 01383 628800
Mob: 07872 376105
Maureen Walls
Senior Insolvency Manager
mwalls@thomsoncooper.com
Phone: 01383 628800
About the author
Ian Brown
Ian is an expert in the Debt Arrangement Scheme and Business Debt Arrangement Scheme, assisting individuals, sole traders and partnerships.
He also advises on personal debt solutions recommending the best option to resolve problem debt issues.