Personal Insolvency Act 2012

35.

Effect of issue of Debt Relief Notice.

35.— (1) Subject to this section, a specified creditor shall not, during the supervision period concerned—

( a) initiate any legal proceedings in relation to a specified qualifying debt,

( b) take any step to prosecute any such legal proceedings already initiated,

( c) take any step to secure or recover payment of a specified qualifying debt,

( d) execute or enforce a judgment or order of a court or tribunal against the debtor in respect of a specified qualifying debt,

F29 [ (e) take any step to recover goods in the possession or custody of the debtor, unless title to the goods is vested in the specified creditor or the specified creditor holds security over the goods, ]

( f) contact the specified debtor regarding payment of a specified qualifying debt, otherwise than at the request of the debtor, or

( g) in relation to an agreement with the specified debtor, other than a security agreement, by reason only that the debtor is insolvent or that the Debt Relief Notice concerned is in effect—

(i) terminate or amend that agreement, or

(ii) claim an accelerated payment under that agreement.

(2) A specified creditor shall not, during the supervision period concerned, in respect of a specified qualifying debt, present, apply for or proceed with—

( a) a bankruptcy petition relating to the debtor, or

( b) a summons under section 8 of the Bankruptcy Act 1988.

(3) Without prejudice to subsections (1) and (2), during the supervision period concerned, no other proceedings, execution or other legal process in respect of a specified qualifying debt may be commenced or continued against the specified debtor or his or her property, except with the leave of the appropriate court and subject to any order that the court may make to stay such proceedings, execution or other legal processes for such period as the court deems appropriate, 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 Debt Relief Notice is in effect in relation to a specified debtor shall not operate to prevent a specified creditor taking the actions referred to in subsection (1) as respects another person who has guaranteed a debt of the specified debtor concerned.

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

(6) Subsections (4) and (5) do not apply where a Debt Relief Notice, or a protective certificate issued under Chapter 3 or 4 , is in effect as respects the other person.

(7) The Deeds of Arrangement Act 1887 does not apply to a Debt Relief Notice .

(8) While a Debt Relief Notice remains in effect under this Chapter, the information referred to in section 33(4) , and a record of any extension under this Chapter of the supervision period concerned, shall remain on the Register of Debt Relief Notices.

(9) Nothing in this section shall affect the right of a secured creditor to enforce or otherwise deal with his or her security.