Personal Insolvency Act 2012
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,
F48 [ (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,
( 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21 days from the date of the notification, to submit a revised application or to confirm that the application has been withdrawn.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) F49 [ … ]
(5) Subject to subsections (6) and (7) 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), 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.
(7) Where a protective certificate has been issued pursuant to subsection (2)(a) or extended under subsection (6), the appropriate court may on application to that court extend the period of the protective certificate by a further additional period not exceeding 40 days where—
( a) the personal insolvency practitioner has been appointed in accordance with section 49(7) , 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.
(8) A hearing held under subsection (7) shall be held with all due expedition.
(9) The period of a protective certificate may be extended under subsection (7) once only.
(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) .
F48 [ (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,
(iii) the date on which the protective certificate ceases, under this Chapter, to be in force,
(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 subsections (5), (6) and (7), 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,
( 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.