Written Question · S2W-31625 · Session 2
Whether the Accountant in Bankruptcy has the power to consider what remedies are available to Farepak customers in Scotland in receipt of b…
The question
To ask the Scottish Executive whether the Accountant in Bankruptcy has the power to consider what remedies are available to Farepak customers in Scotland in receipt of benefits under the Social Security Administration Act 1992 with regard to recovering monies lost and, if so, what action the Accountant in Bankruptcy has taken in this respect.
The answer
Corporate insolvency, suchas the Farepak Administration, is reserved for the UK Parliament under Schedule5 of the Scotland Act 1998 and as such the Accountant in Bankruptcy does nothave any powers to assist Farepak customers.
The Accountant inBankruptcy, as trustee in a personal sequestration, can make a claim in the administrationof Farepak where the debtor is due monies. This would be on the same basis asall other Farepak customers and would be treated as an unsecured creditor’s claimin the administration. In a sequestration where the debtor had made paymentssolely out of social security benefits to Farepak, any money recovered would bereturned to the debtor under section 187 of the Social Security Administration Act 1992.
The Accountant inBankruptcy, as trustee in a personal sequestration, can make a claim in the administrationof Farepak where the debtor is due monies. This would be on the same basis asall other Farepak customers and would be treated as an unsecured creditor’s claimin the administration. In a sequestration where the debtor had made paymentssolely out of social security benefits to Farepak, any money recovered would bereturned to the debtor under section 187 of the Social Security Administration Act 1992.
In the Official Report
No contribution in the Official Report cites S2W-31625 by reference.