122.— (1) Without prejudice to section 120, a creditor or a personal insolvency practitioner may, as respects a Personal Insolvency Arrangement, at any time during which the arrangement concerned is in effect, apply to the appropriate court to have that Personal Insolvency Arrangement terminated, and such application shall be limited to the following grounds:

(a) a material inaccuracy or omission exists in the debtor’s Prescribed Financial Statement which causes a material detriment to the creditor;

(b) the debtor, when the Personal Insolvency Arrangement was proposed, did not satisfy the eligibility criteria specified in section 91;

(c) the debtor did not comply with the duties and obligations imposed on him or her under the Personal Insolvency Arrangement process;

(d) the debtor has since the coming into effect of the Personal Insolvency Arrangement been convicted of an offence under this Act;

(e) the debtor is in arrears with his or her payments for a period of not less than 3 months;

(f) the debtor has failed to carry out any action necessary to enable a term of the Personal Insolvency Arrangement to have effect;

(g) the debtor has unreasonably refused to consent to a variation of the Personal Insolvency Arrangement.

(2) For the purposes of subsection (1)(e), a debtor is in arrears with his or her payments for a period of not less than 3 months where—

(a) at the beginning of the 3 month period ending immediately before the day on which the application was made, one or more than one payment in respect of the debts became due and payable by the debtor under the Personal Insolvency Arrangement, and

(b) at no time during that 3 month period were any obligations in respect of those payments discharged.

(3) On hearing an application under subsection (1) the appropriate court may—

(a) dismiss the application,

(b) terminate the Personal Insolvency Arrangement, or

(c) order that the personal insolvency practitioner prepare a proposal for a variation of the arrangement in accordance with section 119.

F122[(4) Where the appropriate court makes a decision under subsection (3)—

(a) the Registrar of the appropriate court shall notify the Insolvency Service of the decision, and

(b) the Insolvency Service, on receipt of the notification under paragraph (a), shall notify the personal insolvency practitioner and the specified creditors concerned of the decision.

(5) Where the appropriate court decides, under subsection (3), to terminate a Personal Insolvency Arrangement, the Insolvency Service shall, on receipt of the notification under subsection (4) of that termination, record the fact of the termination of the Personal Insolvency Arrangement in the Register of Personal Insolvency Arrangements.]