ABWOR and sequestration proceedings: block fees payable and charges subsumed

The fees allowable to you for providing ABWOR for a petition by a debtor for the sequestration of their estate under section 5(2)(a) of the Bankruptcy (Scotland) Act 1985 are set out in the regulations.

Whilst detailed fees are payable for general advice on debt, any work in connection with and, importantly, leading up to the petition is subsumed within the block fee.

From the moment the decision is taken to proceed to sequestration, no charge other than the block fees prescribed by the regulations can be made.

You may wish to continue under the existing advice and assistance certificate for general debt or, alternatively, admit the client to advice and assistance for the sequestration proceedings.

The fees prescribed will be covered by the initial limit of authorised expenditure without the need for an increase.

Court dues for petition for sequestration are waived for people receiving certain benefits as shown in the Sheriff Court Fees Amendment Order 2002.

Where the Minimal Assets Process (MAP) has been engaged the debtor’s application fee is not a cost that is chargeable to the Fund.

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