Debts Relief Order and Administration Order for Debtors in the United Kingdom
What Malaysian Can Learn?
DOI:
https://doi.org/10.52962/ipjaf.2018.2.3.60Keywords:
Debtors pre-rehabilitation, debts relief, administrative order, country comparison, bankruptcyAbstract
Debtor’s pre-rehabilitation is a measure given to a debtor in order to avoid bankruptcy once he failed to fulfil his financial commitment with his creditors. The pre-rehabilitation schemes can be obtained through court or out of court’s settlement. The most common type of pre-rehabilitation that court based in the United Kingdom (UK) is Individual Voluntary Arrangement (IVA), which usually applicable to debtors with a large number of debts. Meanwhile, for a debtor with a smaller amount of debts, and disqualified from IVA, may resort to Debts Relief Order (DRO) and Administration Order (AO). On the other hand, Malaysian debtors may only resort to Voluntary Arrangement (VA) modelled after the IVA practised in the UK to avoid bankruptcy. Considering the importance to give more options for pre- rehabilitation schemes for Malaysian debtors, this paper examines the provisions on DRO and AO in the UK. The authors collected primary and secondary data from judicial decisions, textbooks, reports and articles from both law and non-law journals. This paper concludes by showing that if Malaysia emulates the UK and introduces DRO and AO, debtors in Malaysia will have two more bankruptcy pre-rehabilitation to complement the VA.
Downloads
References
Association of Business Recovery Professionals: Rescue Recovery Renewal (R3) (2013). Debt Relief Order. A Bankruptcy Update. Association of Business Recovery Professionals. Retrieved from: https://www.r3.org.uk/media/documents/policy/policy_papers/personal_insolvency/R3_Debt_Relief_Orders_Paper.pdf
Beraho, E. K., & Elisu, R. (2010). Influence of country culture on bankruptcy and insolvency legal reform management. International Journal of Management and Information Systems, 14(2), 39-49.
Collard, S. (2009). An Independent Review of the Fee-Charging Debt Management Industry, Personal Finance Research Centre, University of Bristol. Retrieved from: http://www.adviceuk.org.uk/wp-content/uploads/2013/06/1droguide.pdf
County Courts Act (CCA) 1984. Retrieved from https://www.legislation.gov.uk/ukpga/1984/28/contents
GOV.UK. (n.d.). Options for paying off your debts. Retrieved from: https://www.gov.uk/options-for-paying-off-your-debts/debt-relief-orders
Insolvency Act 1986 (IA 1986). Retrieved from: https://www.legislation.gov.uk/ukpga/1986/45/contents
Insolvency Act 1967 (IA 1967). Retrieved from: http://www.agc.gov.my/agcportal/uploads/files/Publications/LOM/EN/Act%20360%20-%20Reprint%202017.pdf
Kempson, E., & Collard, S. (2004). Managing Multiple Debts Experiences of County Court Administration Orders among debtors, creditors and advisors. DCA Research Series 1/04. University of Bristol. Page 64.
Nolan v Stoke on Trent City Council (2006) Stoke on Town Country Court, 11 August 2006; Adviser Issue 128: Dispute Resolution, http://content.yudu.com
R (Cooper and Payne) v Secretary of State for Work and Pensions (2010) EWHC 2162
Radhakrishna, G. (2012). Winds of Change In Malaysia’s Insolvency Laws Part 1: Bankruptcy, 3 MLJ clxvii.
Re Preston Borough Council v Riley (1999). B.P.I.R. 284
Secretary of State for Work and Pensions v Payne and another (2011) UKSC 60
Stoke on Town Country Court (2006). Adviser Issue 128: Dispute Resolution. Retrieved from: http://content.yudu.com.
The Independent (1995). Law Report - Case Summaries. Retrieved from: https://www.independent.co.uk/news/world/law-report-case-summaries-1621741.html
Downloads
Published
Issue
Section
License
Site users
Copyright of all articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) belongs to their respective authors. Site users are permitted to download and print the articles for personal use. Further reproduction and/or distribution is not permitted, except for brief excerpts or quotations intended for inclusion in some other original works. In this case, proper attribution must be made to the author/copyright holder, and the place of publication must be acknowledged. Altering, editing or otherwise modifying the content of information obtained from the Indian Pacific Journal of Accounting and Finance (IPJAF) is a breach of copyright.
Authors
While you retain the copyright of your original material, by publishing in the Indian Pacific Journal of Accounting and Finance (IPJAF) , you will have agreed to the following contractual terms:
- The article is the original work of the stated author(s).
- The work has not been published previously.
- If the Article contains copyright material owned by others, written permission has been obtained from the copyright owner(s) to republish such material in any print or electronic medium and that you have included appropriate acknowledgement of such rights in the Article.
- The author agrees to grant a non-exclusive license to the Indian Pacific Journal of Accounting and Finance (IPJAF) to communicate the work to the public.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may use the article for publicity purposes.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may publish the article on third-party sites.
- Any subsequent publication of the article by the authors will carry the acknowledgement: First published in the Indian Pacific Journal of Accounting and Finance (IPJAF) [http://ipjaf.omjpalpha.com]
Disclaimer
The Indian Pacific Journal of Accounting and Finance (IPJAF) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.
