luluj wrote:
as long as you are not declared bankrupt then their is no impact - I have had to resource this myself recently - IVA's are not affected
Is there a definitive answer on this issue? One argument I have heard is centres on how Section 80 of the Local Government Act 1972 was amended by the Enterprise Act 2002 as follows:
"267 Disqualification from office: local government (1) The following shall be substituted for section 80(1)(b) of the Local Government Act 1972 (c. 70) (disqualification for membership of local authority: bankrupt)—
“(b) is the subject of a bankruptcy restrictions order or interim order;”.
(2) Section 81(1) and (2) of that Act (which amplify the provision substituted by subsection (1) above) shall cease to have effect."
Under "268 Disqualification from office: general" there appears:
"(9) In this section “bankrupt” means an individual—
(a) who has been adjudged bankrupt by a court in England and Wales or in Northern Ireland,
(b) whose estate has been sequestrated by a court in Scotland, or
(c) who has made an agreement with creditors of his for a composition of debts, for a scheme of arrangement of affairs, for the grant of a trust deed or for some other kind of settlement or arrangement."
Subclause (c) therefore raises the question, do IVAs fall within this clause's definition of "bankrupt"? Does it redefine "bankrupt" compared to other existing/previous legislation?
I would suggest any Councillor in this situation would need to talk to the Council's legal or democratic services section. They need to be made aware so they can make the judgement call themselves. It would seem in appropriate to me for a member to be voting on financial issues affecting thousands of people whilst insolvent.
Yes very useful to know as I have clients at the moment who are both well respected councellors and whose integrity is at question by the discovery of their details on the Insolvency Register by a bitter and twisted member of a rival political party who is looking to discredit them.
How stupid is it that these hardworking people, who strive for their local communities and spend many hours helping people less fortunate, are the subject of a mindless prejudice over having a few debts through no fault of their own but a failed business which was caused directly through the insolvency and business failure of some of their customers.
It is long time that this register was removed from Internet search engines.
Last edited by MelanieGiles on Wed Aug 27, 2008 10:08 pm, edited 1 time in total.
MelanieGiles wrote:
It is long time that this register was removed from Internet search engines.
In permitting unrestricted access to the Individual Insolvency Register to anyone - which could include groups and organisations whose intentions might be immoral or illegal - might the government be in breach of Article 8 of the Human Rights Act; the right to privacy? After all, IVAs are meant to be a means of dealing with one's debts without the glare of publicity which bankruptcy involves.
From my point of view I don't think the register needs to be public whether for bankrupts either. My BR notice was in the London Gazette and the local paper, so why absolutely anybody can log on and have a look at my details I don't know. If a financial organisation wants to subscribe to the register then fine, but it shouldn't be a free for all.
The relevant legislative provision is s 80(1)(b) of the Local Government Act 1972 (“LGA 1972”) (as amended by s 267 of the Enterprise Act 2002 (“EA 2002”) with effect from 1st April 2004). Section 80(1)(b) provides that “a person shall be disqualified for being elected or being a member of a local authority if he … (b) is the subject of a bankruptcy restrictions order or interim order”.
The original version of s 80(1)(b) was different. It provided that a person would be disqualified if he “is a person who has been adjudged bankrupt, or made a composition or arrangement with his creditors”. The latter would cover IVAs. However, that provision is no longer in force. The current version on its face provides only for disqualification where the individual is the subject of a bankruptcy restrictions order or interim order.
The current version of s 80(1)(b) of the LGA 1972 is not therefore to be read as disqualifying a councillor where all that has happened is that the councillor has entered into an IVA and there has not been any interim order before the IVA was entered into, or the councillor has been made the subject of a BRO under Sch 4A to the Act (the latter, of course, requiring a previous adjudication of bankruptcy under s 264 of the IA 1986).
Thankyou for all your comments apart from Angelrainbow.
Being Insolvent does not mean I would be unable to make clear concise decisions on money matters. Behind every IVA there is a story from failed businesses to failed marriages. Many people in an IVA could be there through no fault of their own.
Reading these posts jogged my memory - in the elections for the District Council an opponent (who happened to be an accountant) of an excellent councillor dicovered that this individual had an IVA. He used it, causing huge embarrassment not only to the councillor in question but to his wife and children. The result was that this very excellent individual withdrew from public life and the people he served are now "served" by a party lacky who just does as he is told by his party and the paid officials of the council
Councillors should not be disbarred as a result of an IVA nor should bankruptcy be a problem. However, I think each case should be judged on it's merits and if there were any dubious practices that lead to the insolvency this could operate as a bar to public office. If the insolvency was due to a failed business, marriage, illness redundancy etc then the debtor should not be penalised.
Last edited by Michael Peoples on Mon Jun 15, 2009 10:01 am, edited 1 time in total.
