News In Focus
Bankruptcy law reform consultation opens
An overhaul of Scottish bankruptcy law to make it fit for present-day conditions has been launched today by Scottish Ministers with a wide-ranging public consultation.
The Bankruptcy Law Reform consultation, which runs from 24 February until 18 May 2012, examines and makes recommendations on many aspects of bankruptcy law, and seeks the views of the public on its proposals.
Among other things the consultation looks at:
- developing a “Financial Health Service” for debt advice, debt management and debt relief, and ensuring that financial education is central to this;
- developing new statutory debt relief routes for individuals and businesses as well as refining the current range of options – while reinforcing the key principle that individuals who can pay their debts, should pay;
- strengthening the powers of the Accountant in Bankruptcy (AiB) in relation to supervision of trustees in all personal debt relief products;
- streamlining the process by removing the court from non-contentious creditor bankruptcy petitions and modernising those parts of the current legislation that are outdated;
- introducing a single financial assessment tool to aid in the calculation of an appropriate contribution from individuals.
Launching the consultation, Minister for Energy, Enterprise and Tourism, Fergus Ewing MSP said:
“We must address the problems associated with the financial crisis and recession wherever we can.
“The world we live in today is quite different to that of 1985, when the last Scottish Bankruptcy Act came into force. This consultation considers the principles of bankruptcy and other debt management solutions and is one of the most ambitious and far-reaching reforms ever considered by both the Scottish Government and Accountant in Bankruptcy.
“It represents an excellent opportunity for members of the public and concerned parties to contribute towards the future landscape of bankruptcy law in Scotland. “
Click here to view the consultation.