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Section 308 of Insolvency Act CAP 53: Debtor's proposal and provisional supervisor's report

    

(1) This section applies if—
(a) a debtor intends to make a proposal under this Division;
(b) no interim order has been made in relation to the proposal and no application for such an order is pending; and
(c) where the debtor is an undischarged bankrupt, the debtor has given notice of the proposal to the Official Receiver and, if there is one, the bankruptcy trustee of the debtor's estate,
unless a bankruptcy application made by the debtor is pending and the Court has, under section 33, appointed an authorised insolvency practitioner to inquire into the debtor's financial affairs and report the findings to the Court.
(2) For the purpose of enabling the provisional supervisor to prepare a report to the Court, the debtor shall submit to that supervisor—
(a) a document setting out the terms of the voluntary arrangement that the debtor is proposing; and
(b) a statement of the debtor's financial affairs containing—
(i) such particulars of the debtor's creditors and of the debtor's debts and other liabilities and of the debtor's assets as may be prescribed by the insolvency regulations for the purposes of this section; and
(ii) such other information as may be so prescribed.
(3) If of the opinion that the debtor is an undischarged bankrupt, or is in a position to apply for the debtor's own bankruptcy, the provisional supervisor shall, within the prescribed period, submit a report to the Court stating whether in his or her opinion—
(a) the debtor's proposal has a reasonable prospect of being approved and implemented; and
(b) a meeting of the debtor's creditors should be convened to consider the debtor's proposal.
(4) The prescribed period for the purpose of subsection (3) is—
(a) fourteen days after the provisional supervisor has received the document and statement referred to in subsection (2);
(b) such extended period as the Court may allow.
(5) If of the opinion that a meeting of the debtor's creditors should be convened to consider the debtor's proposal, the provisional supervisor shall fix the date on which, and time and place at which, it is proposed to hold the meeting and notify those creditors accordingly.
(6) If the provisional supervisor has failed to submit the report required by this section or has died, the Court may, on an application made by the debtor, make an order directing that supervisor to be replaced as such by another authorised insolvency practitioner.
(7) If it is impracticable or inappropriate for the provisional supervisor to continue to act as such, the Court may, on an application made by the debtor or that supervisor, make an order directing that supervisor to be replaced as such by another authorised insolvency practitioner.
(8) The Court may, on an application made by the provisional supervisor, extend the period within which that supervisor's report is required to be submitted.

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Disclaimer: This document is not to be taken as legal advise.

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