A Bankruptcy Law Reform consultation has been launched with recommendations on many aspects of bankruptcy law. The purpose of the consultation is, ultimately, to modernise current Scottish insolvency legislation.
The consultation looks at:
* Developing a “Financial Health Service” for debt advice, debt management and debt relief for the people of Scotland, 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 Accountant in Bankruptcy 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from non-contentious creditor bankruptcy petitions and modernising those parts of the current legislation that are outdated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
“We must address the problems associated with the financial crisis and recession wherever we can,” said Fergus Ewing MSP, Minister for Energy, Enterprise and Tourism. “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.”
Responses are sought by 18th May 2012.