Personal Insolvency Act 2012

62.

Debt Settlement Arrangement: Effect of issue of protective certificate.

62.— (1) Subject to subsections (3), (4), (5) and (8), a creditor to whom notice of the issue of a protective certificate has been given shall not, whilst the protective certificate remains in force, in relation to a specified debt—

( a) initiate any legal proceedings;

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

( c) take any step to secure or recover payment;

( d) execute or enforce a judgment or order of a court or tribunal against the debtor;

( e) take any step to recover goods in the possession or custody of the debtor, F50 [ whether or not ] title to the goods is vested in the creditor or the creditor holds security over the goods;

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

( g) in relation to an agreement with the debtor, other than a security agreement, by reason only that the debtor is insolvent or that the protective certificate has been issued—

(i) terminate or amend that agreement, or

(ii) claim an accelerated payment under that agreement.

(2) Whilst a protective certificate remains in force, no bankruptcy petition relating to the debtor—

( a) may be presented by a creditor to whom subsection (1) applies in respect of a specified debt,

( b) in a case where the petition has been presented by such a creditor in respect of a specified debt, may be proceeded with.

(3) Without prejudice to subsections (1) and (2), and subject to section 68 , whilst a protective certificate remains in force, no other proceedings and no execution or other legal process in respect of a specified debt may be commenced or continued by a creditor to whom subsection (1) applies against the debtor or his or her property, except with the leave of the court and subject to any order the court may make to stay such proceedings, enforcement or execution for such period as the court deems appropriate pending the outcome of attempts to reach a Debt Settlement Arrangement, 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 protective certificate is in force in relation to a debtor under this Chapter shall not operate to prevent a creditor taking the actions referred to in subsection (1) as respects another person who has guaranteed the debts of the debtor to which the protective certificate relates.

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

(6) Subsections (4) and (5) do not apply where a protective certificate is also in force as respects the other person.

(7) In reckoning any period of time for the purpose of any applicable limitation period in relation to any proceedings or process to which subsection (1) or (3) applies (including any limitation period under the Statute of Limitations 1957), the period in which the protective certificate concerned is in force under section 61 shall be disregarded.

(8) A secured debt shall not be subject to or affected by a protective certificate under this Chapter.