AiB consults on regulations ahead of new Act coming in

Draft regulations to support the working of the Bankruptcy (Scotland) Act 2016 have been issued for consultation by the Accountant in Bankruptcy (AiB), ahead of the Act coming into force.

The Act, which consolidates the Scots law of bankruptcy and protected trust deeds (PTDs), is scheduled to come into effect on 30 November 2016.

While not changing the law, it provides a coherent restatement in a single piece of legislation, without the numerous amendments contained in the different Acts comprising the present law, though practitioners will have to familiarise themselves with new numbering.

An official table of derivations and destinations will be published shortly on www.legislation.gov.uk, but an informal version can now be found by clicking here.

Regulations under the previous 1985 Act are also being consolidated to apply to sequestrations falling under the new Act (i.e. petitioned or applied for on or after 30 November 2016).

It is proposed to have one set of Bankruptcy Regulations, taking in the existing common financial tool and money advice provisions. Additionally, the existing Bankruptcy (Applications & Decisions) Regulations will be retained in their current format, with references and forms updated as appropriate.

The biggest structural innovation is part 14 of the 2016 Act, writing the legal framework for PTDs back into primary legislation, to replace the Protected Trust Deeds (Scotland) Regulations 2013 (SSI 2013/318 as amended). Part 14 will be supplemented by slimmed-down PTD regulations containing only the PTD forms.

AiB is now inviting feedback on the draft regulations, which should be sent no later than Wednesday 31 August 2016.

The regulations will be laid before the Scottish Parliament in the Autumn after feedback has been considered.