Debtor Contribution Order (‘DCO’) meaning

An order setting the amount a bankrupt in Scotland must contribute from surplus income to their sequestrated estate. During Scottish bankruptcy, the Accountant in Bankruptcy (AiB) determines, using the statutory common financial tool (CFT), whether the debtor has surplus income and issues a Debtor Contribution Order (DCO) specifying the monthly contribution and duration. A DCO is a statutory mechanism under the Bankruptcy (Scotland) Act 2016; it typically runs for up to 48 months, and may continue after discharge. The trustee collects the payments. The amount can be varied, suspended or revoked if the debtor’s circumstances change, and review and appeal routes exist under the 2016 Act, including to the AiB and the sheriff court. Non-payment can be enforced by the trustee. Usage is jurisdiction-specific: “Debtor Contribution Order” is a Scottish term. In England & Wales and Northern Ireland the closest equivalents are Income Payments Agreements (IPAs) and Income Payments Orders (IPOs) under the Insolvency Act 1986. In Ireland, the High Court may make an Income Payment Order on the application of the Official Assignee under the Bankruptcy Act 1988. The underlying concept—diverting surplus income for the benefit of creditors—is broadly consistent.