Bankruptcy (Desastre) Jersey Order: Proposed amendment

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A decision made 15 November 2012:

Decision Reference: MD-E-2012-141
Decision Summary Title :	Bankruptcy (Désastre) (Jersey) Order 201-		Date of Decision Summary:	6 November 2012
Decision Summary Author:	Director, Finance Industry Development		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Bankruptcy (Désastre) (Jersey) Order 201-		Date of Written Report:	6 November 2012
Written Report Author:	Director, Finance Industry Development		Written Report: Public or Exempt?	Public
Subject: Drafting of a new Order replacing the provisions set out in Article 5 (a) and 5 (b) of the Bankruptcy (Désastre) (Jersey) Order 2006.
Decision(s): The Minister for Economic Development approved the drafting of an Order to increase the figures contained in Article 5(a) and 5(b) of the Bankruptcy (Désastre) (Jersey) Order 2006 by the Jersey Retail Price Index. The new figures should be as follows: In relation to Article 5 (a)– previously £3,500 – amend to £4,350 In relation to Article 5 (b)– previously £1,000– amend to £1,250
Reason(s) for Decision: The Economic Development Department was contacted by the Viscount’s Department requesting an amendment to be made by Order to the Bankruptcy (Désastre)Jersey Law 1991. This amendment relates to Article 32 of the Law which refers to the “Order of payments of debts” which includes, inter alia, priority claims for wages, salary, holiday and bonuses, provided that the sum to which priority is given does not exceed the prescribed amount as set out in Article 5 (a) and 5 (b) of the Bankruptcy (Désastre) Jersey Order 2006 (“the Order”) (attached). The Viscount’s Department has noted that by applying the Jersey cost of living index to the figures listed in the Order, there has been an increase of 23.8% since 2006 when the previous Order was made. It is therefore deemed desirable to update these figures in line with the increase on the most recent inflation figures available (Sept 2012). The Viscount’s Department is supportive of the view that the new figures should be set at: In relation to Article 5 (a) of the order – previously £3,500 – change to £4,350 In relation to Article 5 (b) of the order – previously £1,000– change to £1,250
Resource Implications: There are no financial or manpower implications for the States of Jersey arising as a result of this decision.
Action required: The Order is to be drafted by the Law Draftsman.
Signature: Senator AJH Maclean		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):