Commentary on Sections Functions of sheriff and Accountant in Bankruptcy in sequestration Section 33 – Bankruptcy restrictions order
82.This section replaces the existing section 56A of the 1985 Act with a new section (‘Bankruptcy restrictions order’) in order to give AiB the power, upon conclusion of an investigation, to make certain bankruptcy restrictions orders. These are for a period of between 2 and 5 years beginning with the date on which the order is made. An application for a bankruptcy restriction order for a period of 5 years or more must be heard by a sheriff. Bankruptcy restrictions orders impose certain restrictions on a debtor where there has been a level of misconduct by the debtor either before or after the date of bankruptcy, as described in section 56B of the 1985 Act. The restrictions remain in force after the date of discharge from bankruptcy, and can last for periods varying between 2 and 15 years, depending upon the severity of the misconduct. The new section 56A(3) (4) will enable representations to be made by the debtor to AiB in the case where the AiB proposes to make a bankruptcy restrictions order.
83.In the case of a bankruptcy restrictions order made by the AiB, new section 56E(3) of the 1985 Act provides that if the debtor wishes to object to a bankruptcy restrictions order, they should apply to AiB to annul its decision. Section 56E(6) confirms that in those circumstances there is a right of onward appeal to the sheriff, once AiB has taken its decision. New section 56E(7) of the 1985 Act allows a sheriff to make an order providing that a debtor is unable to make another annulment application under subsection (3) for a period specified in the order.