Tribunals, Courts and Enforcement Act 2007 (c. 15)

(The document as of February, 2008)

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"the Commissioners" means the Commissioners for Her Majesty's Revenue and Customs;
"information" means information held in any form;
"the lapsed order" means the attachment of earnings order referred to in section 15A(1);
"the proper authority" is determined in accordance with subsections (2) to (5).

(2) If the lapsed order was made by the High Court, the proper authority is the High Court.

(3) If the lapsed order was made by a county court, the proper authority is a county court.

(4) If the lapsed order was made by a magistrates' court under this Act, the proper authority is--

(a) a magistrates' court, or

(b) the designated officer for a magistrates' court.

(5) If the lapsed order was made by a magistrates' court or a fines officer under Schedule 5 to the Courts Act 2003, the proper authority is--

(a) a magistrates' court, or

(b) a fines officer. "

(2) This section applies in relation to any attachment of earnings order, whether made before or after the commencement of this section.

(3) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (c. 44), the reference in section 15B(10)(b) of the Attachment of Earnings Act 1971 (c. 32) to 12 months is to be read as a reference to 6 months.

Charging orders

93 Payment by instalments: making and enforcing charging orders

(1) Subsections (2), (3) and (4) make amendments to the Charging Orders Act 1979 (c. 53).

(2) In section 1 (charging orders), after subsection (5) insert--

" (6) Subsections (7) and (8) apply where, under a judgment or order of the High Court or a county court, a debtor is required to pay a sum of money by instalments.

(7) The fact that there has been no default in payment of the instalments does not prevent a charging order from being made in respect of that sum.

(8) But if there has been no default, the court must take that into account when considering the circumstances of the case under subsection (5). "

(3) In section 3 (provisions supplementing sections 1 and 2), after subsection (4) insert--

" (4A) Subsections (4C) to (4E) apply where--

(a) a debtor is required to pay a sum of money in instalments under a judgment or order of the High Court or a county court (an "instalments order"), and

(b) a charge has been imposed by a charging order in respect of that sum.

(4B) In subsections (4C) to (4E) references to the enforcement of a charge are to the making of an order for the enforcement of the charge.

(4C) The charge may not be enforced unless there has been default in payment of an instalment under the instalments order.

(4D) Rules of court may--

(a) provide that, if there has been default in payment of an instalment, the charge may be enforced only in prescribed cases, and

(b) limit the amounts for which, and the times at which, the charge may be enforced.

(4E) Except so far as otherwise provided by rules of court under subsection (4D)--

(a) the charge may be enforced, if there has been default in payment of an instalment, for the whole of the sum of money secured by the charge and the costs then remaining unpaid, or for such part as the court may order, but

(b) the charge may not be enforced unless, at the time of enforcement, the whole or part of an instalment which has become due under the instalments order remains unpaid. "

(4) In section 6(2) (meaning of references to judgment or order of High Court or county court), for "section 1" substitute "sections 1 and 3".

(5) In section 313(4) of the Insolvency Act 1986 (c. 45) (charge on bankrupt's home: certain provisions of section 3 of Charging Orders Act 1979 to apply), for the words before "section 3" substitute "Subsection (1), (2), (4), (5) and (6) of".

(6) This section does not apply in a case where a judgment or order of the High Court or a county court under which a debtor is required to pay a sum of money by instalments was made, or applied for, before the coming into force of this section.

94 Charging orders: power to set financial thresholds

In the Charging Orders Act 1979 (c. 53), after section 3 there is inserted--

" 3A Power to set financial thresholds

(1) The Lord Chancellor may by regulations provide that a charge may not be imposed by a charging order for securing the payment of money of an amount below that determined in accordance with the regulations.

(2) The Lord Chancellor may by regulations provide that a charge imposed by a charging order may not be enforced by way of order for sale to recover money of an amount below that determined in accordance with the regulations.

(3) Regulations under this section may--

(a) make different provision for different cases;

(b) include such transitional provision as the Lord Chancellor thinks fit.

(4) The power to make regulations under this section is exercisable by statutory instrument.

(5) The Lord Chancellor may not make the first regulations under subsection (1) or (2) unless (in each case) a draft of the statutory instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.

(6) A statutory instrument containing any subsequent regulations under those subsections is subject to annulment in pursuance of a resolution of either House of Parliament. "

Information requests and orders

95 Application for information about action to recover judgment debt

(1) A person who is the creditor in relation to a judgment debt may apply to the High Court or a county court for information about what kind of action it would be appropriate to take in court to recover that particular debt.

(2) An application under subsection (1) must comply with any provision made in regulations about the making of such applications.

96 Action by the court

(1) This section applies if the creditor in relation to a judgment debt makes an application for information under section 95.

(2) The relevant court may make one or more of the following in relation to the debtor--

(a) a departmental information request;

(b) an information order.

(3) The relevant court may exercise its powers under subsection (2) only if it is satisfied that to do so will help it to deal with the creditor's application.

(4) Before exercising its powers under subsection (2), the relevant court must give notice to the debtor that the court intends to make a request or order.

(5) The relevant court may not make a departmental information request to the Commissioners unless regulations are in force that have been made under section 102(4) and (7) and relate to the use or disclosure of debtor information disclosed by the Commissioners.

(6) The relevant court may disclose such information (including information identifying the debtor) as it considers necessary to assist the recipient of a request or order to comply with the request or order.

(7) A disclosure under subsection (6) is not to be taken to breach any restriction on the disclosure of information (however imposed).

(8) Nothing in this section is to be taken to prejudice any power that exists apart from this section to request or order the disclosure of information.

97 Departmental information requests

(1) A departmental information request is a request for the disclosure of information held by, or on behalf of, a government department.

(2) The request is to be made to the Minister of the Crown, or other person, who is in charge of the department.

(3) In the case of a request made to the designated Secretary of State, the disclosure of some or all of the following information may be requested--

(a) the full name of the debtor;

(b) the address of the debtor;

(d) the national insurance number of the debtor;

(e) prescribed information.

(4) In the case of a request made to the Commissioners, the disclosure of some or all of the following information may be requested--

(a) whether or not the debtor is employed;

(b) the name and address of the employer (if the debtor is employed);

(d) prescribed information.

(5) In the case of any other request, the disclosure of prescribed information may be requested.

(6) In this section--

"designated Secretary of State" means the Secretary of State designated for the purpose of this section by regulations;
"government department" does not include the following--
(a)
any part of the Scottish Administration;
(b)
a Northern Ireland department;
(c)
the Welsh Assembly Government or any member of staff appointed under section 52 of the Government of Wales Act 2006 (c. 32);
"prescribed information", in relation to a departmental information request, means information that falls within the category or categories of information (if any) prescribed by regulations in relation to the department to which the request relates.

98 Information orders

(1) An information order is an order of the relevant court which--

(a) specifies a prescribed person ("the information discloser"),

(b) specifies prescribed information relating to the debtor ("the required information"), and

(2) In subsection (1) "prescribed" means prescribed in regulations.

(3) Regulations under this section may be made by reference to--

(a) particular persons or particular descriptions of person (or both);

(b) particular information or particular descriptions of information (or both).

(4) Regulations may, in particular, be made under this section so as to ensure that--

(a) an information order made against a particular person, or a person of a particular description, may order that person to disclose only particular information, or information of a particular description;

(b) an information order that orders the disclosure of particular information, or information of a particular description, may only be made against a particular person, or a person of a particular description.

(5) Regulations under this section must not make provision that would allow the relevant court to order--

(a) the disclosure of information by the debtor, or

(b) the disclosure of information held by, or on behalf of, a government department.

99 Responding to a departmental information request

(1) This section applies if the relevant court makes a departmental information request.

(2) The recipient of the request may disclose to the relevant court any information (whether held by the department or on its behalf) that the recipient considers is necessary to comply with the request.

(3) A disclosure under subsection (2) is not to be taken to breach any restriction on the disclosure of information (however imposed).

(4) Nothing in this section is to be taken to prejudice any power that exists apart from this section to disclose information.

100 Information order: required information not held etc.

(1) An information discloser is not to be regarded as having breached an information order because of a failure to disclose some or all of the required information, if that failure is for one of the permitted reasons.

(2) These are the permitted reasons--

(a) the information provider does not hold the information;

(b) the information provider is unable to ascertain whether the information is held, because of the way in which the information order identifies the debtor;

(3) It is to be presumed that a failure to disclose required information is for a permitted reason if--

(a) the information discloser gives the relevant court a certificate that complies with subsection (4), and

(b) there is no evidence that the failure is not for a permitted reason.

(4) The certificate must state--

(a) which of the required information is not being disclosed;

(b) what the permitted reason is, or permitted reasons are, for the failure to disclose that information.

(5) Any reference in this section to the information discloser holding, or not holding, information includes a reference to the information being held, or not being held, on the information discloser's behalf.

101 Using the information about the debtor

(1) This section applies if--

(a) the creditor in relation to a judgment debt makes an application for information under section 95, and

(b) information ("debtor information") is disclosed to the relevant court in compliance with a request or order made under section 96.

(2) The relevant court may use the debtor information for the purpose of making another request or order under section 96 in relation to the debtor.

(3) The relevant court may use the debtor information for the purpose of providing the creditor with information about what kind of action (if any) it would be appropriate to take in court (whether the relevant court or another court) to recover the judgment debt.

(4) If the creditor takes any action in the relevant court to recover the judgment debt, the relevant court may use the debtor information in carrying out functions in relation to that action.

(5) If the creditor takes any action in another court to recover the judgment debt--

(a) the relevant court may disclose the debtor information to the other court, and

(b) the other court may use that information in carrying out functions in relation to that action.

(6) Debtor information may be used or disclosed under any of subsections (3) to (5) only if--

(a) regulations about such use or disclosure of information are in force, and

(b) the use or disclosure complies with those regulations.

(7) In addition, if the debtor information was disclosed by the Commissioners, the information may be used or disclosed under any of subsections (3) to (5) only with the consent of the Commissioners.

(8) Consent for the purposes of subsection (7) may be given--

(a) in relation to particular use or a particular disclosure, or

(b) in relation to use, or a disclosure made, in such circumstances as may be specified or described in the consent.

(9) The use or disclosure of information in accordance with this section is not to be taken to breach any restriction on the use or disclosure of information (however imposed).

(10) Nothing in this section is to be taken to prejudice any power that exists apart from this section to use or disclose information.

102 Offence of unauthorised use or disclosure

(1) This section applies if--

(a) an application is made under section 95 in relation to recovery of a judgment debt ("the relevant judgment debt"),

(b) a departmental information request or an information order is made in consequence of that application, and

(2) A person to whom the debtor information is disclosed commits an offence if he--

(a) uses or discloses the debtor information, and

(b) the use or disclosure is not authorised by any of subsections (3) to (6).

(3) The use or disclosure of the debtor information is authorised if it is in accordance with section 101.

(4) The use or disclosure of the debtor information is authorised if it is--

(a) in accordance with an enactment or order of court, or

(b) for the purposes of any proceedings before a court,

and it is in accordance with regulations.

(5) The use or disclosure of the debtor information is authorised if the information has previously been lawfully disclosed to the public.

(6) The use or disclosure of the debtor information is authorised if it is in accordance with rules of court that comply with regulations under subsection (7).

(7) Regulations may make provision about the circumstances, if any, in which rules of court may allow access to, or the supply of, information disclosed in accordance with a department information request or an information order.

(8) It is a defence for a person charged with an offence under subsection (2) to prove that he reasonably believed that the use or disclosure was lawful.

(9) A person guilty of an offence under subsection (2) is liable--

(a) on conviction on indictment, to imprisonment for a term not exceeding two years, to a fine or to both;

(b) on summary conviction, to imprisonment for a term not exceeding twelve months, to a fine not exceeding the statutory maximum, or to both.

103 Regulations

(1) It is for the Lord Chancellor to make information regulations.

(2) But the Lord Chancellor may make the following regulations only with the agreement of the Commissioners--

(a) regulations under section 97(4)(d);

(b) regulations under section 102(4) or (7) so far as the regulations relate to the use or disclosure of debtor information disclosed by the Commissioners.

(3) Information regulations are to be made by statutory instrument.

(4) A statutory instrument containing information regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(5) But subsection (4) does not apply in the case of a statutory instrument that contains only--

(a) regulations under section 95, or

(b) regulations under section 97 which designate a Secretary of State for the purpose of that section.

(6) In such a case, the statutory instrument is subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In this section "information regulations" means regulations under any of sections 95 to 102.

104 Interpretation

(1) This section applies for the purposes of sections 95 to 103.

(2) In those provisions--

"Commissioners" means the Commissioners for Her Majesty's Revenue and Customs;
"creditor", in relation to a judgment debt, means--
(a)
the person to whom the debt is payable (whether directly or through an officer of any court or another person);
(b)
where the debt is payable under an administration order (within the meaning of Part 6 of the County Courts Act 1984 (c. 28)), any one of the creditors scheduled to the order;
"debtor", in relation to a judgment debt, means the person by whom the debt is payable;
"departmental information request" has the meaning given by section 97;
"information" means information held in any form;
"information discloser", in relation to an information order, has the meaning given by section 98(1)(a);
"information order" has the meaning given by section 98;
"judgment debt" means either of the following--
(a)
a sum which is payable under a judgment or order enforceable by the High Court or a county court;
(b)
a sum which, by virtue of an enactment, is recoverable as if it were payable under a judgment or order of the High Court or of a county court (including a sum which is so recoverable because a court so orders);
"required information", in relation to an information order, has the meaning given by section 98(1)(b);
"relevant court", in relation to an application under section 95, means the court to which the application is made.

(3) Any reference to information held on behalf of a government department, or on behalf of an information discloser, includes a reference to any information which--

(a) is held by a person who provides services to the department or to the information discloser, and

(b) is held by that person in connection with the provision of those services.

105 Application and transitional provision

(1) Sections 95 to 104 apply in relation to any judgment debt, whether it became payable, or recoverable, before or after the commencement of those sections.

(2) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (c. 44), the reference in section 102(9)(b) to 12 months is to be read as a reference to 6 months.

Part 5 Debt management and relief

Chapter 1 Administration orders

106 Administration orders

(1) For Part 6 of the County Courts Act 1984 (c. 28) (administration orders) substitute--

" Part 6 Administration Orders

Administration orders

112A Administration orders

An administration order is an order--

(a) to which certain debts are scheduled in accordance with section 112C, 112D or 112Y(3) or (4),

(b) which imposes the requirement specified in section 112E on the debtor, and

112B Power to make order

(1) A county court may make an administration order if the conditions in subsections (2) to (7) are met.

(2) The order must be made in respect of an individual who is a debtor under two or more qualifying debts.

(3) That individual ("the debtor") must not be a debtor under any business debts.

(4) The debtor must not be excluded under any of the following--

(a) the AO exclusion;

(b) the voluntary arrangement exclusion;

(5) The debtor must be unable to pay one or more of his qualifying debts.

(6) The total amount of the debtor's qualifying debts must be less than, or the same as, the prescribed maximum.

(7) The debtor's surplus income must be more than the prescribed minimum.

(8) Before making an administration order, the county court must have regard to any representations made--

(a) by any person about why the order should not be made, or

(b) by a creditor under a debt about why the debt should not be taken into account in calculating the total amount of the debtor's qualifying debts.

Scheduling debts

112C Scheduling declared debts

(1) This section applies to a qualifying debt ("the declared debt") if--

(a) an administration order is made, and

(b) when the order is made, the debt is taken into account in calculating the total amount of the debtor's qualifying debts for the purposes of section 112B(6).

(2) If the declared debt is already due at the time the administration order is made, the proper county court must schedule the debt to the order when the order is made.

(3) If the declared debt becomes due after the administration order is made, the proper county court must schedule the debt to the order if the debtor, or the creditor under the debt, applies to the court for the debt to be scheduled.

(4) This section is subject to section 112AG(5).

112D Scheduling new debts

(1) This section applies to a qualifying debt ("the new debt") if the debt--

(a) arises after an administration order is made, and

(b) becomes due during the currency of the order.

(2) The proper county court may schedule the new debt to the administration order if these conditions are met--

(a) the debtor, or the creditor under the new debt, applies to the court for the debt to be scheduled;

(b) the total amount of the debtor's qualifying debts (including the new debt) is less than, or the same as, the prescribed maximum.

Requirements imposed by order

112E Repayment requirement

(1) An administration order must, during the currency of the order, impose a repayment requirement on the debtor.

(2) A repayment requirement is a requirement for the debtor to repay the scheduled debts.

(3) The repayment requirement may provide for the debtor to repay a particular scheduled debt in full or to some other extent.

(4) The repayment requirement may provide for the debtor to repay different scheduled debts to different extents.

(5) In the case of a new debt scheduled to the order in accordance with section 112D, the repayment requirement may provide that no due repayment in respect of the new debt is to be made until the debtor has made all due repayments in respect of declared debts.

(6) The repayment requirement must provide that the due repayments are to be made by instalments.

(7) It is for the proper county court to decide when the instalments are to be made.

(8) But the proper county court is to determine the amount of the instalments in accordance with repayment regulations.

(9) Repayment regulations are regulations which make provision for instalments to be determined by reference to the debtor's surplus income.

(10) The repayment requirement may provide that the due repayments are to be made by other means (including by one or more lump sums) in addition to the instalments required in accordance with subsection (6).

(11) The repayment requirement may include provision in addition to any that is required or permitted by this section.

(12) In this section--

"declared debt" has the same meaning as in section 112C (and for this purpose it does not matter whether a declared debt is scheduled to the administration order when it is made, or afterwards);
"due repayments" means repayments which the repayment requirement requires the debtor to make;
"new debt" has the same meaning as in section 112D.

112F Presentation of bankruptcy petition

(1) An administration order must, during the currency of the order, impose the following requirement.

(2) The requirement is that no qualifying creditor of the debtor is to present a bankruptcy petition against the debtor in respect of a qualifying debt, unless the creditor has the permission of the proper county court.

(3) The proper county court may give permission for the purposes of subsection (2) subject to such conditions as it thinks fit.

112G Remedies other than bankruptcy

(1) An administration order must, during the currency of the order, impose the following requirement.

(2) The requirement is that no qualifying creditor of the debtor is to pursue any remedy for the recovery of a qualifying debt unless--

(a) regulations under subsection (3) provide otherwise, or

(b) the creditor has the permission of the proper county court.

(3) Regulations may specify classes of debt which are exempted (or exempted for specified purposes) from the restriction imposed by subsection (2).

(4) The proper county court may give permission for the purposes of subsection (2)(b) subject to such conditions as it thinks fit.

(5) This section does not have any effect in relation to bankruptcy proceedings.

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