Bankruptcy proposals attract further criticism

Insolvency practitioners to lobby ministers against 12 month discharge plan

News, 27 March 2006

---

Insolvency practitioners in Scotland are to meet Executive ministers to voice concerns over the Bankruptcy and Diligence (Scotland) Bill.

Bryan Jackson, PFK's Scottish senior partner in Scotland, acting as spokesperson for practitioners in Scotland, is to lobby Deputy Enterprise Minister Allan Wilson over the proposed reduction in the period of sequestration from three years to one, in line with reforms already in force south of the border.

While the Executive aims to promote an entrepreneurial culturee through the change, Mr Jackson claims that as many as 95% of the personal insolvency cases dealt with by his firm relate to consumer spending, rather than business failures. He believes it does not make sense to reduce the discharge period to a year but require the debtor to make contributions for three years, as is proposed.

Imposing a minimum dividend payment of up to 30p in the pound before a protecteed trust deed can is another proposal that comes under fire from the PFK boss. He says the idea wrongly assumes a connection between an individual's assets, income level and access to credit, and forcing people with debt problems into formal sequestration will increase the cost to the taxpayer.

Current News 29.08.08 No compensation culture in UK - survey Accident helpline reveals most Brits won't and don't make spurious claims 29.08.08 Commission plan to end inconsistent sentencing Proposal imminent for creation of Sentencing Commission 29.08.08 OU course teaches more about the law New course aims to give people a better understanding of Scotland's legal processes 28.08.08 Auditor of Court appointed Kenneth Cumming to take over from Neil Crichton at the Court of Session 28.08.08 Education advocacy services given government cash Funding for children's additional support needs advocacy 28.08.08 North move for private client specialist Mark Stewart joins Aberdeen firm Stronachs as a partner 28.08.08 Database of domestic abusers needed HMIC recommends Scottish police forces adopt common practices and processes 27.08.08 Shared equity scheme details out New supply shared equity intended to help people on low incomes get on housing ladder 27.08.08 Prison population hits record levels More than 8,000 people now locked up; SPS says it can contain but not provide services 26.08.08 Concerns over mortgage requirement change Society says revised new-build instructions to solicitors not appropriate for Scots market 26.08.08 MSP proposes equity fines for companies Owners should be accountable for health and safety breaches, says SNP's Wilson 25.08.08 Legislation needed for land management row Home owners should not be locked in to manintenance agreements, says MP 25.08.08 Special meeting backs Society's strategy Review group the way to keep up pressure on legal aid, solicitors agree 25.08.08 Eight Scottish law firms in UK top 100 Magazine survey rates firms according to turnover for last year