Does a Tomlin Order constitute a regulated credit agreement?
On 15th July 2019 in CFL Finance Ltd v Bass and others [2019] EWHC 1839 (Ch), the High Court (Chief ICC Judge Briggs) published its decision following the final hearing of a bankruptcy petition.
The court refused to adjourn the creditor’s bankruptcy petition where creditors were in dispute as to how to proceed with regard to the debtor.
In so doing, the court considered whether the fact that an earlier IVA proposal had been revoked by the court for (among other reasons) a failure to disclose a side deal which meant that the debtor could not subsequently propose a new IVA.
The court also held that a structured settlement clause making provision for the payment of a debt over time (in the form of a Tomlin Order) does not extend “credit” or “financial accommodation” within the meaning of section 9(1) of the Consumer Credit Act 1974 (CCA), so these arrangements do not fall within the scope of consumer credit regulation.
If you are considering entering into an Individual Voluntary Arrangement or if you have been served with a Statutory Demand or Bankruptcy Petition please contact Summit Law LLP urgently.
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