§ Mrs. Margaret EwingTo ask the Secretary of State for Trade and Industry if he will publish the findings of the recent investigation into the operation of the scheme introduced by the Bankruptcy (Scotland) Act 1985 whereby public funds are available for sequestration in Scotland; and what reform of the scheme is proposed.
§ Mr. RedwoodThe policy evaluation is not yet complete.
§ Mrs. Margaret EwingTo ask the Secretary of State for Trade and Industry for each year since inception, what was the number of sequestrations awarded under the Bankruptcy (Scotland) Act 1985 where the total debts have not exceeded £2,000.
§ Mr. RedwoodComprehensive statistics are not available but the accountant in bankruptcy estimates, on the basis of a sampling exercise, that the percentage of sequestrations awarded annually where the total debts did not exceed £2,000 were as follows:
per cent. 1986 2.9 1987 1.2 1988 2.8 1989 6.9 The figure for 1989 is based on the information available on the total debts when the sampling exercise was undertaken and is provisional.
§ Mrs. Margaret EwingTo ask the Secretary of State for Trade and Industry in cases of voluntary sequestration or sequestration, pursuant to a trust deed under the Bankruptcy (Scotland) Act 1985, what monitoring is applied to identify the payer of the pre-sequestration expenses such as legal fees and out-lays in connection with the petition; and what steps are taken to establish whether these expenses are paid by the trustee subsequently appointed or by a partner of the trustee or anyone associated with the trustee.
§ Mr. RedwoodA trust deed is an entirely private arrangement between truster and trustee and is not subject to supervision by the court. There is no provision in the Bankruptcy (Scotland) Act 1985 requiring or empowering the accountant in bankruptcy to identify the source of payment of pre-sequestration expenses.