Back in April my Assistant Scott Runciman posted a short blog on some of the temporary changes to Scottish Landlord/Tenancy law brought about by the introduction of the Coronavirus (Scotland) Act 2020. These changes are now in operation.
Further temporary changes in the bankruptcy sphere are being proposed by Scottish Ministers through the Coronavirus (Scotland) (No.2) Bill. The Bill is expected to come into force towards the end of May (post amendment).
The bill introduces further protections for those facing bankruptcy.
- The minimum debt level for a creditor-lead petition for sequestration will rise from £3,000 to £10,000.
- The upper threshold for the availability of the minimal asset process (MAP) will be raised to £25,000 meaning those with larger debts will be able to enter into a cheaper bankruptcy process and avoid more costly creditor led
Together with extending the period of moratorium (a period of debt relief where creditors cannot act to recover the debt) to 6 months per the first bill, it is clear Scottish policy makers are taking debtors into careful consideration when devising Coronavirus emergency plans. I am not sure creditors will say the same thing about their interests though! Sequestration was perhaps the strongest weapon in their arsenal, and that is now being severely restricted.
Should you have any queries on the proposed changes or on debt recovery in general please do not hesitate to get in touch with our Debt Recovery Team.
The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.