To ask the Scottish Executive whether courts can stay debt recovery actions for up to 12 months for individuals experiencing debt problems.
There are a number of mechanisms available to individuals experiencing financial difficulties which, subject to sheriff approval, allow the repayment of debt without the threat of further legal action.
The sheriff may grant a time to pay direction or order under the Debtors (Scotland) Act 1987, for a period that the sheriff considers reasonable, based on the individual''s circumstances. These times to pay directions or orders may last for more than 12 months, however, this period is subject to the sheriff''s discretion.
The sheriff may grant a time order for consumer contract debts, under the Consumer Credit Act 1974. Time orders have slightly different criteria for sheriffs to consider before granting but otherwise are similar to time to pay directions and orders. Time orders may also last for more than 12 months at the sheriff''s discretion.
Where a creditor has petitioned for an individual''s bankruptcy, a sheriff may continue the petition for such period as he sees fit, if that individual has applied for a debt payment programme under the Debt Arrangement Scheme.