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Consumer Credit Bill

Amendment No. 25 raises an important issue. While the Government support the noble Lord’s attempt, the Bill already achieves the result that he seeks. In each of the United Kingdom’s legal jurisdictions, the estate of the debtor, which includes any rights of action at law or under statute that the debtor may have, is invested in the Official Receiver or the trustee in bankruptcy when the debtor is placed in liquidation or becomes bankrupt. There is no need for an amendment of the type proposed by the noble Lord and I ask him not to press Amendment No. 25. Amendment No. 26 removes the bar set out in new Section 140B(4) which provides that an order made by the court under new Section 140B(4) shall not alter the effect of any judgment. It is intended to prevent the court setting aside judgments previously made in order to give effect to the rule that a statutory jurisdiction to reopen a transaction does not enable the court to reopen a transaction that has been subject to a previous judgment made by the court. The Government recognise the issues raised by the noble Lord, and by others in discussions the department has had with interested practitioners, and are considering the effect of this provision in the context of the rules governing civil procedure in England and Wales, Scotland and Northern Ireland. I ask the noble Lord to withdraw his amendment at this stage, and we may return to it on Report. This is not because the Government are convinced that the provision may require some change, but because we need additional time to consider the position thoroughly before deciding conclusively whether a change is required and, if one is, what form it should take.