Bankruptcy and Diligence (Scotland) Bill
The Bill aims to make changes to the law around bankruptcy and diligence.
The Bill is at Stage 3
Contents
Overview
At its introduction, the Bill aims to change the law in three main areas. It will:
- give powers to the Scottish Ministers to establish a pause on debt recovery action against people who are in debt and who also have a mental illness
- make technical changes to the law on bankruptcy
- update the law on diligence
Bankruptcy is a formal way of dealing with debts when people cannot afford to pay their debt (in money or belongings).
Diligence is the legal processes that creditors can take to enforce repayment of overdue debts.
You can read more about what this Bill does in the Explanatory Notes (172KB, pdf) posted 27 April 2023
Why the Bill was created
In Session 5 the Scottish Parliament’s Economy, Energy and Fair Work Committee recommended that the Scottish Government should review the debt solutions available to people with problem debt in Scotland.
In response to the Committee’s report, the Scottish Government is undertaking a policy review. Groups of people have been looking at different areas of debt law and making recommendations for improvement. The Scottish Government has also asked for people to share their views.
You can read more about why this Bill has been created in the Policy Memorandum (296KB, pdf) posted 27 April 2023