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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 31 July 2013 - onwards
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38. Treatment by Insolvency Service of sums received under section 36 or 37.

(1) The Insolvency Service, on receipt of a sum under subsection (2) or (3) of section 36 or under section 37, shall deal with that sum in accordance with this section.

(2) On receipt of a sum referred to in subsection (1), the Insolvency Service shall, subject to subsection (3) -

(a) apportion that sum, on a pari passu basis, among the specified creditors to whom a specified qualifying debt that is a permitted debt is owed, and

(b) within one month of such receipt, transmit to each such specified creditor payment of the sum apportioned to that creditor under paragraph (a).

(3) Where, following a payment or payments to specified creditors under subsection (2) or subsection (4), as the case may be, all of the specified qualifying debts referred to in subsection (2) have been paid in full, the Insolvency Service shall, in relation to a sum referred to in subsection (1) -

(a) apportion that sum, on a pari passu basis, among the remaining specified creditors concerned, and

(b) within one m

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