MSPs seek "lived experience" views on Bankruptcy Bill

A Holyrood committee is appealing for views from people with experience of severe financial difficulties, as it calls for evidence on the Scottish Government's Bankruptcy and Diligence Bill.

MSPs on the Economy & Fair Work Committee want to find out how the debt recovery process could be improved, as they begin scrutiny of provisions that include a requirement for creditors to provide a debtor with information about debt advice before enforcement.

The bill also creates a “mental health moratorium”, which for a specified period would halt enforcement action against someone with serious mental health problems, providing them some breathing space, comparable to the moratorium on diligence in part 15 of the Bankruptcy (Scotland) Act 2016. 

Changes to exceptional attachment would allow parties with debts a longer period to pay the redemption figure to maintain the asset, in certain circumstances. Other minor and technical amendments to bankruptcy legislation would serve to provide clarity and improve the operation of bankruptcy processes. 

Committee convener Claire Baker MSP said: "The stress and worry of severe financial difficulties is something that all too many people are facing. The bill aims to make changes to the bankruptcy process, but we want to know what impact these changes will have on those people affected.

"By sharing their insights, people from across Scotland can help shape a fairer and more compassionate system that addresses the challenges faced by individuals in financial distress.

"We particularly want to hear from people who have been in this situation and experienced significant mental health challenges on the difference the proposed moratorium would have made."

The call for views is open until Friday 21 July.