65.— (1) Subject to the mandatory requirements referred to in subsection (2), the terms of a Debt Settlement Arrangement shall be those which are agreed to by the debtor and, subject to this Chapter, approved by a majority of the debtor’s creditors in accordance with this Chapter.

(2) The mandatory requirements referred to in subsection (1) are:

(a) the maximum duration of a Debt Settlement Arrangement shall be 60 months but a Debt Settlement Arrangement may provide that this period may be extended for a further period of not more than 12 months in such circumstances as are specified in the terms of the Debt Settlement Arrangement;

(b) where the debtor performs all of his or her obligations specified in a Debt Settlement Arrangement, he or she shall stand discharged from the remainder of the debts covered by the Debt Settlement Arrangement;

(c) a Debt Settlement Arrangement shall not require the debtor to sell any of his or her assets that are reasonably necessary for the debtor’s employment, business or vocation unless the debtor explicitly consents to such sale;

(d) a Debt Settlement Arrangement shall not contain any terms which would require the debtor to make payments of such an amount that the debtor would not have sufficient income to maintain a reasonable standard of living for the debtor and his or her dependants;

(e) a Debt Settlement Arrangement shall—

(i) make provision for the costs and outlays of the personal insolvency practitioner which relate to the matters referred to in F62[sections 48 to 54] and this Chapter and to the ongoing administration of the Arrangement,

F63[(ia) make provision for the payment of all tax liabilities incurred by the debtor, or by the personal insolvency practitioner, under the Taxes Consolidation Act 1997 during the administration of the Arrangement and—

(I) such tax liabilities of the personal insolvency practitioner shall be payable in priority to any payments to creditors, and

(II) any failure by the debtor to comply with the terms of the provision shall be a breach of the Arrangement such that the Collector-General (within the meaning of the Taxes Consolidation Act 1997) may withdraw his or her agreement under section 58 to accept the compromise contained in the Arrangement, ]

(ii) indicate the likely amount of the fees, costs and outlays to be incurred, or where this is not practicable, the basis on which those fees, costs and outlays will be calculated, and

(iii) specify the person or persons by whom those fees, costs and charges are payable and the manner in which they have been or are to be paid;

(f) a Debt Settlement Arrangement shall make provision for the manner in which the debtor’s debts are to be treated in the event of the death or mental incapacity of the debtor;

(g) a Debt Settlement Arrangement shall not require that the debtor dispose of his or her interest in his or her principal private residence or to cease to occupy such residence unless the provisions of section 69(3) apply;

(h) a Debt Settlement Arrangement shall provide that the circumstances of the debtor be reviewed by the personal insolvency practitioner at regular intervals which are specified in the Arrangement (which intervals are not greater than 12 months) during the currency of the Debt Settlement Arrangement;

(i) a Debt Settlement Arrangement shall provide that the review referred to in paragraph (h) shall include the preparation by the debtor of a new Prescribed Financial Statement, a copy of which together with a statement by the personal insolvency practitioner as to whether he or she considers that statement to be complete and accurate, shall be sent by the personal insolvency practitioner to each creditor;

(j) the terms of a Debt Settlement Arrangement shall specify the circumstances where the personal insolvency practitioner shall be obliged to propose a variation of the Debt Settlement Arrangement in accordance with section 82.

(3) The Insolvency Service may publish a Code of Practice providing guidance on any of the matters set out in subsection (2).

(4) For the purposes of subsection (2)(d), and without prejudice to subsection (3), in determining whether a debtor would have sufficient income to maintain a reasonable standard of living for the debtor and his or her dependants under the Debt Settlement Arrangement, regard shall be had to any guidelines issued under section 23.