Diligence

Amendments to The Debtors (Scotland) Act 1987 sees bad news for creditors seeking to arrest sums due to them in the accounts of debtors or connected third-parties.

If you are owed sums and instruct a Sheriff Officer to arrest funds in a bank account, there is a minimum amount which is protected from the arrestment. This is known as the ‘protected minimum balance’ and is currently £529.90.

The Coronavirus (Recovery and Reform) (Scotland) Bill will see the protected balance increase to £1,000, meaning creditors will now have one more hurdle to consider when seeking recovery of outstanding debts.

If you would like to discuss the recovery of debts due to your business and/or the new rules, please contact by email dalexander@gilsongray.co.ukdgray@gilsongray.co.uk or by telephone 0131 516 5354.

 

 

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