This is a Government bill
The Bill became an Act on 15 July 2024
This Bill was passed and is now an Act of the Scottish Parliament.
At its introduction, the Bill aims to change the law in three main areas. It will:
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.
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.
Bankruptcy and Diligence (Scotland) Bill as introduced (610KB, pdf) posted 27 April 2023
Explanatory Notes (172KB, pdf) posted 27 April 2023
Policy Memorandum (296KB, pdf) posted 27 April 2023
Financial Memorandum (237KB, pdf) posted 27 April 2023
Delegated Powers Memorandum (176KB, pdf) posted 27 April 2023
Statements on legislative competence (118KB, pdf) posted 27 April 2023
Explanatory Notes (315KB, pdf) posted 27 April 2023
Policy Memorandum (406KB, pdf) posted 27 April 2023
Financial Memorandum (322KB, pdf) posted 27 April 2023
Delegated Powers Memorandum (229KB, pdf) posted 27 April 2023
Statements on legislative competence (169KB, pdf) posted 27 April 2023
All Bills introduced in the Parliament must be accompanied by specific documents. For most Bills, this includes:
Explanatory Notes: this document provides an overview of what the Bill does, plus a more detailed explanation of individual provisions.
Policy Memorandum: this sets out the objectives of the Bill. It also lists any alternatives considered, details of consultations, and an assessment of the effects of the Bill on a range of areas.
Financial Memorandum: this sets out estimates of costs, savings, and any changes to revenues expected to result from the Bill.
Delegated Powers Memorandum: this is needed if a Bill gives powers to make subordinate legislation or allows Scottish Ministers to issue directions, guidance or codes of practice.
Statements on legislative competence: two short statements, one by the Presiding Officer and one by the Member introducing the Bill. “Legislative competence” means the powers the Parliament has to make law.
The Presiding Officer has decided under Rule 9.12 of Standing Orders that a financial resolution is not required for this Bill.
For each Bill, the Presiding Officer must decide if a 'Financial Resolution' is required. The main reasons a Bill would need a Financial Resolution are that:
If a Bill requires a Financial Resolution:
The Scottish Parliament's Information Centre (SPICe) prepares impartial research and analysis to assist MSPs in their examination of Bills and other parliamentary business.
Research briefing on the Bankruptcy and Diligence (Scotland) Bill
The Bill was introduced on 27 April 2023
At Stage 1, the Bill is given to a lead committee. This is usually the committee whose remit most closely relates to the subject of the Bill. The lead committee will consider and report on the Bill. Other committees may also examine the Bill and report to the lead committee. Finally, there is a debate and vote by all MSPs on the general principles of the Bill. If the general principles are not agreed to, then the Bill ‘falls’ and can’t become law.
On 13 September 2023, Parliament agreed motion S6M-10421, that consideration of the Bankruptcy and Diligence (Scotland) Bill at stage 1 be completed by 24 November 2023.
On 8 November 2023, Parliament agreed motion S6M-11145, that consideration of the Bankruptcy and Diligence (Scotland) Bill at stage 1 be extended to 23 February 2024.
The lead committee for this Bill is the Economy and Fair Work Committee.
The lead committee will usually examine the Bill through evidence sessions. This will involve contributions from individuals and organisations, known as 'witnesses', with knowledge of the subject matter. The committee might also discuss the Bill in private sessions.
The Economy and Fair Work Committee held a call for views to help inform its examination of the Bill.
Read the call for views
The call for views closed on 21 July 2023.
Read the Official Report of the meeting
Read the Official Report of the meeting
Read the Official Report of the meeting
Read the Official Report of the meeting
Read the agenda, papers and minutes for this meeting (Private)
Read the agenda, papers and minutes for this meeting (Private)
Committees sometimes meet in private. This might be to hear confidential or particularly sensitive information, or to discuss a draft report. When a committee meets in private, its proceedings are not broadcast and, usually, there is no Official Report. However, the committee minutes will record the business taken and any decisions reached.
In addition to the public evidence sessions and the call for written views, the committee held an engagement session with One Parent Families Scotland and Poverty Alliance.
Read the engagement notes (112KB, pdf) posted 15 November 2023
Letter from Richard Dennis, 5 December 2023
Letter from Alan McIntosh, 27 October 2023
Letter from COSLA, 26 October 2023
Letter from Alan McIntosh, 21 September 2023
Letter from the Minister for Community Wealth and Public Finance, 5 September 2023
See a full list of Stage 1 correspondence
The lead committee published its stage 1 report on 23 January 2024.
Stage 1 Report on the Bankruptcy and Diligence (Scotland) Bill
The committee received the following response to its report:
Letter from the Minister for Community Wealth and Public Finance (176KB, pdf) posted 02 February 2024
If a Bill is relevant to more than one committee, 'secondary committees' may consider and report on the general principles of the Bill to the lead committee. Some Bills may also be considered by the Delegated Powers and Law Reform Committee or the Finance and Public Administration Committee.
The Delegated Powers and Law Reform Committee published its report on 22 June 2023.
Read the report
Letter from the Minister for Community Wealth and Public Finance to the Convener, 23 February 2024
Letter from the Scottish Government to the Clerk, 14 June 2023
Letter from the Clerk to the Scottish Government, 7 June 2023
See a full list of Stage 1 correspondence
A Stage 1 debate took place on 6 February 2024 to consider and decide on the general principles of the Bill.
See further details of the motion
The Bill ended Stage 1 on 6 February 2024
At Stage 2, MSPs can propose changes to a Bill. These are called 'amendments'. Any MSP can suggest amendments but only members of the Stage 2 committee can decide on them.
Documents with the amendments considered at the meeting on 20 March 2024:
Marshalled List of Amendments for Stage 2 (312KB, pdf) posted 15 March 2024
Supplement to the Marshalled List of Amendments for Stage 2 (189KB, pdf) posted 19 March 2024
Groupings of Amendments for Stage 2 (326KB, pdf) posted 15 March 2024
Read the agenda, papers and minutes for this meeting
A Stage 2 'Marshalled List' is a list of all the amendments that have been lodged at Stage 2 (or, if the Stage is mid-way through, all those still to be dealt with). They are listed in the order in which they will be called by the convener and then decided on.
A 'Groupings' list shows how the amendments that are listed in the Marshalled List have been grouped together for debate. Each group contains amendments that are related to each other, even if they are at different places in the Marshalled List.
Letter from University of Aberdeen, 23 April 2024
Letter from Alan McIntosh, 21 March 2024
Letter from Alan McIntosh, 21 March 2024
Letter from COSLA, 19 March 2024
Letter from University of Aberdeen, 19 March 2024
See a full list of Stage 2 correspondence
Bankruptcy and Diligence (Scotland) Bill as amended at Stage 2 (882KB, pdf) posted 20 March 2024
Revised Explanatory Notes (202KB, pdf) posted 19 April 2024
Supplementary Financial Memorandum (122KB, pdf) posted 19 April 2024
Supplementary Delegated Powers Memorandum (234KB, pdf) posted 17 April 2024
Revised Explanatory Notes (324KB, pdf) posted 18 April 2024
Supplementary Financial Memorandum (186KB, pdf) posted 18 April 2024
Supplementary Delegated Powers Memorandum (252KB, pdf) posted 17 April 2024
Sometimes an amendment at Stage 2 makes substantial changes to a bill. If this happens, the Accompanying Documents need to be updated to explain what these changes are.
The Bill ended Stage 2 on 20 March 2024
At Stage 3, MSPs can propose further amendments (changes) to the Bill. These are debated and decided on in the Debating Chamber. At this stage, all MSPs can vote on them. There is then a debate on whether to pass the Bill. If the Bill is not passed, it ‘falls’ and can't become law.
Documents with the amendments considered at the meeting on 6 June 2024:
Marshalled List of Amendments for Stage 3 (441KB, pdf) posted 31 May 2024
Timed Groupings of Amendments for Stage 3 (334KB, pdf) posted 05 June 2024
A Stage 3 'Marshalled List' is a list of all the amendments that have been proposed at Stage 3 and that have been selected by the Presiding Officer. They are listed in the order in which they will be called by the Presiding Officer and then decided on.
A 'Groupings' list shows how the amendments that are listed in the Marshalled List have been grouped together for debate. Each group contains amendments that are related to each other, even if they are at different places in the Marshalled List.
Letter to the Minister for Public Finance, 31 May 2024
Letter from Alan McIntosh, 23 May 2024
Letter from the Minister for Public Finance, 17 May 2024
See a full list of Stage 3 correspondence
Once MSPs have decided on the amendments, they debate whether to pass the Bill.
Result 109 for, 0 against, 0 abstained, 20 did not vote Vote Passed
See further details of the motion
See further details of the motion
Bankruptcy and Diligence (Scotland) Bill as passed (413KB, pdf) posted 06 June 2024
The Bill ended Stage 3 on 6 June 2024
The Bill was passed on 6 June 2024 and became an Act on 15 July 2024.