188ÌåÓý

Some content of this manual is being considered for archiving. If there is content you use regularly, please email [email protected] to let us know as soon as possible.

Section 251 of the Enterprise Act 2002 abolished preferential status for PAYE, SC and NICClasses 1, 2 and 4.

The following tables detail what should be claimed as a “secured� or“non-preferential� debt for costs where the relevant date is prior to 15 September 2003.

Cases where you have executed diligence within the 60-day period prior to sequestration

Earnings arrestment laid but see DMBM676660

Claim any outstanding costs as non-preferential.

Arrestment in execution laid (following on Decree)

Claim as “secured� the lesser of the total costs incurred in your action or the sum caught by the arrestment and claim any balance of costs as “non-preferential�.

Action of Furthcoming complete

• Retain all the costs of your action as the “securedâ€� element of your claim.
• Pay the remainder of the proceeds to the Permanent Trustee.
• Claim the tax and so on that is outstanding in the normal way.

If the proceeds of the action are insufficient to cover all the expenses:

• retain all monies as the “securedâ€� element of your claim
• claim any balance of costs as “non-preferentialâ€�
• claim unpaid tax and so on in the normal way.

Cases where you have executed diligence outwith the 60-day period prior to sequestration

Earnings arrestment laid

Claim any outstanding costs as non-preferential

Arrestment in execution laid (following on Decree)

Claim as “secured� the total costs incurred in your action or the sum caught by the arrestment and claim any balance of costs as “non-preferential�.

Action of Furthcoming complete

Do not lodge any claim for costs. Your diligence is complete � the proceeds no longer form part of the debtor’s estate.

Claim any unpaid tax and so on in the normal way.