New debt law comes into force
New legislation comes into force today (Wednesday, April 1) which sees Scotland introduce one of the most modern systems of debt advice and debt management in the world.
The Bankruptcy and Debt Advice (Scotland) Act introduces a suite of measures, including the Minimal Asset Process, which offers debt relief quickly and at less than half the cost of an application for bankruptcy under the previous equivalent scheme for those on low incomes.
Accountant in Bankruptcy will oversee implementation of the new law, which has been designed to balance the rights of those in debt with the needs of creditors and businesses.
The introduction of the legislation is the latest element in the Scottish Government’s vision of a Financial Health Service for Scotland, which commenced with the launch of the Scotland’s Financial Health Service web portal in December 2014. The site is a one-stop shop for advice on a range of money issues, signposting users to organisations offering information and advice on debt, managing money, housing, homelessness and ethical lending.
The Bankruptcy and Debt Advice (Scotland) Act 2014 contains a range of new powers. Details can be obtained here: http://www.legislation.gov.uk/asp/2014/11/contents
Scotland’s Financial Health Service www.scotlandsfinancialhealthservice.gov.uk is a one-stop shop for advice a range of money issues and signposts to organisations offering information and advice on debt, managing money, housing, homelessness and ethical lending. The Scotland’s Financial Health Service helpline is available by calling 0800 707 6696
Further information regarding insolvency in Scotland, including legislation, can be found on the Accountant in Bankruptcy’s website www.aib.gov.uk