Included and excluded debts
In a bankruptcy, the general rule is that all debts must be included, but not all will be discharged.
Hire purchase debts do not need to be included where the client is making regular payments. They should be entered as ongoing expenditure.
Student loans do not discharge but must be entered on the application.
The client is also not discharged from:
•any liability to pay a fine or other penalty due to the Crown;
•any liability to pay a fine imposed in a justice of the peace court (or a district court);
•any liability under a compensation order (within the meaning of section 249 of the Criminal Procedure (Scotland) Act 1995;
•any liability to forfeiture of a sum of money deposited in court under section 24(6) of the Criminal Procedure (Scotland) Act 1995;
•any liability incurred because of fraud or breach of trust;
•any obligation to pay:
◦aliment, or any sum of an alimentary nature, under any enactment or rule of law; or
◦any periodical allowance payable on divorce by virtue of a court.
1s145 B(S)A 2016