House of Commons portcullis
House of Commons

Publications on the internet
Index of Amendments

          

NOTICES OF AMENDMENTS

given up to and including

Tuesday 11th June 2002


New Amendments handed in are marked thus *

CONSIDERATION OF BILL

ENTERPRISE BILL, AS AMENDED


NEW CLAUSES

Bankrupt's home

   

Ms Secretary Hewitt

NC6

*To move the following Clause:—

    '(1)   The following shall be inserted after section 283 of the Insolvency Act 1986 (definition of bankrupt's estate)—

          "283A    Bankrupt's home ceasing to form part of estate

          (1)   This section applies where property comprised in the bankrupt's estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the bankrupt's sole or principal residence.

          (2)   At the end of the period of three years beginning with the date of the bankruptcy the interest mentioned in subsection (1) shall—

          (a) cease to be comprised in the bankrupt's estate, and

          (b) vest in the bankrupt (without conveyance, assignment or transfer).

          (3)   Subsection (2) shall not apply if during the period mentioned in that subsection—

          (a) the trustee realises the interest mentioned in subsection (1),

          (b) the trustee applies for an order for sale in respect of the dwelling-house,

          (c) the trustee applies for an order for possession of the dwelling-house,

          (d) the trustee applies for an order under section 313 in Chapter IV in respect of that interest, or

          (e) the trustee and the bankrupt agree that the bankrupt shall incur a specified liability to his estate (with or without the addition of interest from the date of the agreement) in consideration of which the interest mentioned in subsection (1) shall cease to form part of the estate.

          (4)   Where an application of a kind described in subsection (3)(b) to (d) is made during the period mentioned in subsection (2) and is dismissed, unless the court orders otherwise the interest to which the application relates shall on the dismissal of the application—

          (a) cease to be comprised in the bankrupt's estate, and

          (b) vest in the bankrupt (without conveyance, assignment or transfer).

          (5)   If the bankrupt does not inform the trustee or the official receiver of his interest in a property before the end of the period of three months beginning with the date of the bankruptcy, the period of three years mentioned in subsection (2)—

          (a) shall not begin with the date of the bankruptcy, but

          (b) shall begin with the date on which the trustee or official receiver becomes aware of the bankrupt's interest.

          (6)   The court may substitute for the period of three years mentioned in subsection (2) a longer period—

          (a) in prescribed circumstances, and

          (b) in such other circumstances as the court thinks appropriate.

          (7)   The rules may make provision for this section to have effect with the substitution of a shorter period for the period of three years mentioned in subsection (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy).

          (8)   The rules may also, in particular, make provision—

          (a) requiring or enabling the trustee of a bankrupt's estate to give notice that this section applies or does not apply;

          (b) about the effect of a notice under paragraph (a);

          (c) requiring the trustee of a bankrupt's estate to make an application to the Chief Land Registrar.

          (9)   Rules under subsection (8)(b) may, in particular—

          (a) disapply this section;

          (b) enable a court to disapply this section;

          (c) make provision in consequence of a disapplication of this section;

          (d) enable a court to make provision in consequence of a disapplication of this section;

          (e) make provision (which may include provision conferring jurisdiction on a court or tribunal) about compensation."

    (2)   Section 313 of the Insolvency Act 1986 (c.45) (charge on bankrupt's home) shall be amended as follows—

      (a) in subsection (2) for ", up to the value from time to time of the property secured," substitute ", up to the charged value from time to time,", and

      (b) after subsection (2) insert—

          "(2A)   In subsection (2) the charged value means—

          (a) the amount specified in the charging order as the value of the bankrupt's interest in the property at the date of the order, plus

          (b) interest on that amount from the date of the charging order at the prescribed rate.

          (2B)   In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the rules."

    (3)   The following shall be inserted after section 313 of that Act—

          "313A    Low value home: application for sale, possession or charge

          (1)   This section applies where—

          (a) property comprised in the bankrupt's estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the bankrupt's sole or principal residence, and

          (b) the trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under section 313 in respect of the property.

          (2)   The court shall dismiss the application if the value of the interest is below the amount prescribed for the purposes of this subsection.

          (3)   In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the order which prescribes the amount for the purposes of subsection (2)."

    (4)   The following shall be inserted after section 307(2)(a) of the Insolvency Act 1986 (c.45) (after-acquired property: exclusions)—

          "(aa) any property vesting in the bankrupt by virtue of section 283A in Chapter II,".

    (5)   In section 384(2) of that Act (prescribed amounts) after "section 273;" insert—

       "section 313A;".

    (6)   In section 418(1) of that Act (monetary limits in bankruptcy) after the entry for section 273 insert—

section 313A (value of property below which application for sale, possession or charge to be dismissed);".    (7)   In subsection (8)—

      (a) "pre-commencement bankrupt" means an individual who is adjudged bankrupt on a petition presented before subsection (1) above comes into force, and

      (b) "the transitional period" is the period of three years beginning with the date on which subsection (1) above comes into force.

    (8)   If a pre-commencement bankrupt's estate includes an interest in a dwelling-house which at the date of the bankruptcy was his sole or principal residence, at the end of the transitional period that interest shall—

      (a) cease to be comprised in the estate, and

      (b) vest in the bankrupt (without conveyance, assignment or transfer).

    (9)   But subsection (8) shall not apply if before or during the transitional period—

      (a) any of the events mentioned in section 283A(3) of the Insolvency Act 1986 (c.45) (inserted by subsection (1) above) occurs in relation to the interest or the dwelling-house, or

      (b) the trustee obtains any order of a court, or makes any agreement with the bankrupt, in respect of the interest or the dwelling-house.

    (10)   Section 283A(4) of that Act shall apply to an application made during the transitional period in relation to a pre-commencement bankrupt as it applies to an application made during the period mentioned in section 283A(2).'.


Unfair commercial practices
   

Mr John Whittingdale
Mr Nigel Waterson
Mr Charles Hendry
Mr Andrew Lansley
Mr Jonathan Djanogly
Mr Mark Field

NC1

To move the following Clause:—

    '(1)   For the purposes of this section an "unfair commercial practice" is an act, omission or course of conduct, whether or not it involves a contravention of any enactment of rule of law, which contrary to the requirement of good faith, is deceptive or unfair and which causes detriment to the economic interests of one or more consumers.

    (2)   In determining whether an act, omission or course of conduct amounts to an unfair commercial practice, the court shall take into accout

      (a) the nature of the goods or services in question;

      (b) the circumstances of the consumer or consumers in question, including their ability to understand the character, nature and language of any prospective or actual obligation;

      (c) the terms of any contract related to the act, omission or course of conduct;

       and the court may have regard to whether it involved or involves any of the following

      (d) any misleading or deceptive statement made by the person in question;

      (e) any undue influence or pressure exerted by that person on a consumer;

      (f) any exploitation by that person of a consumer not reasonably able to protect his own interests because of physical or mental infirmity;

      (g) any failure by that person to disclose any information which a reasonable consumer would expect to receive in the circumstances;

      (h) any failure by that person to comply with a consumer code of practice (as defined in section 8(4) of this Act) which he claims to follow.

    (3)   Without prejudice to generality of subsection (2) above, the following are indicative and non-exhaustive examples of acts, omissions or conduct which may be regard as unfair commercial practices

      (a) refusing to leave a consumer's home until a contract has been signed;

      (b) putting pressure on a consumer to sign a contract by stating that the same goods, service or price will not be available later when this is not the case;

      (c) exaggerating the dangers to which a consumer may be subject to persuade him to buy an insurance policy or other protection product;

      (d) pressuring a consumer to sign a contract without a reasonable opportunity to study its contents;

      (e) without good reason accompanying a consumer from his home to obtain money for a purchase;

      (f) selling goods or services which are clearly unsuitable, having regard to the consumer's apparent disability or infirmity;

      (g) awarding a prize which promises a free offer or reduction in price for goods or services which are not in fact available;

      (h) promising a prize or award or where the cost of claiming it exceeds the value of the prize or award where the value of the prize or award cannot be used without further unrevealed expense by the consumer;

      (i) unreasonably delaying consideration of a complaint by a consumer under the terms of the contract or requiring the consumer to meet onerous conditions before the complaint is considered;

      (j) unreasonably delaying consideration of a claim under an insurance policy or other protection product;

      (k) failure to keep a consumer reasonably informed about matters related to a contract which affects him;

      (l) obstructing a consumer who attempts to terminate a contract.'.

 
contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page Search page Enquiries index

©Parliamentary copyright 2002
Prepared 11 Jun 2002