New Debt Law Comes into Force in Scotland

New Debt Law Comes into Force in Scotland

The Bankruptcy and Debt Advice (Scotland) Act came into force on 1st April, and contains measures to help financially vulnerable families manage their debt.

 

The 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.

 

Scotland’s 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.

 

Other measures introduced under the new legislation include:

 

  • Mandatory money advice for people seeking access to statutory debt relief instruments such as sequestration (the equivalent term in Scotland for bankruptcy) to ensure debtors are matched with the solution that best fits their needs and circumstances.

  • Compulsory financial education for those who have been sequestrated more than once to help with their financial rehabilitation and prevent future financial difficulties.

  • Introduction of a Common Financial Tool for money advisers, allowing them to quickly assess whether individuals can contribute towards repayment of their debts and what the level of their contribution should be.

  • A new web-based bankruptcy application system.

  • Creditors are obliged to submit claims no later than 120 days after notification by the trustee.

 

“This new law places Scotland firmly at the forefront of efforts on how to help some of the most financially vulnerable in society,” commented Business Minister Fergus Ewing.

 

“It is only proper that we seek to do everything we can to help financially rehabilitate families and individuals on low incomes and with little by way of assets who are struggling with debt, while still offering a fair deal for those owed money,” he added.

 

“Taken as a whole, this pioneering legislation seeks to bring dignity to those people in Scotland seeking to break the cycle of debt once and for all,” he concluded.

mlm Solutions' director Nikki Williams commented that "bankruptcy legislation in Scotland has come a long way and this new Act, in trying to balance the rights of debtors and creditors, introduces a modern system of debt advice and debt management."

"Debtors should be aware of the mandatory requirement to consult with an approved money adviser and that the contribution period has been extended from 36 to 48 months with scope for a 6 month payment break," Ms Williams added.

 

Contact Us

 

Anyone can find themselves with debts that they struggle to repay and it is important to get the right advice. Our team of approved money advisers has extensive knowledge and experience of all debt management and insolvency options including acting as Trustee onpersonal bankruptcy cases. Each individual’s circumstances and concerns are addressed to ensure appropriate solutions are considered. Using the common financial tool guidelines we assess our clients’ monthly income and expenditure, agree a contribution and assist in completing all documentation required to petition for a bankruptcy.

We offer specialist debt advice solutions on a wide range of financial problems including bankruptcy, sequestration and corporate insolvency. For an hour of free expert advice, contact one of our debt solutions experts today on 0845 051 0210 or complete our online enquiry form here.

 

Source:

 

http://news.scotland.gov.uk/News/New-debt-law-comes-into-force-181c.aspx

 

 

 

 

Anyone can find themselves with debts that they struggle to repay and it is important to get the right advice. Our team of approved money advisers have extensive knowledge and experience of all debt management and insolvency options including acting as Trustee on personal bankruptcy cases. Each individual's circumstances and concerns are addressed to ensure appropriate solutions are considered.
Using the common financial tool guidelines we assess our clients' monthly income and expenditure, agree a contribution and assist in completing all documentation required to petition for a bankruptcy.

MLM Solutions

30 03 15

New Debt Law Comes into Force

The Bankruptcy and Debt Advice (Scotland) Act came into force on 1st April, and contains measures to help financially vulnerable families manage their debt.

The 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.

Scotland’s 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.

Other measures introduced under the new legislation include:

  • Mandatory money advice for people seeking access to statutory debt relief instruments such as sequestration (the equivalent term in Scotland for bankruptcy) to ensure debtors are matched with the solution that best fits their needs and circumstances.

  • Compulsory financial education for those who have been sequestrated more than once to help with their financial rehabilitation and prevent future financial difficulties.

  • Introduction of a Common Financial Tool for money advisers, allowing them to quickly assess whether individuals can contribute towards repayment of their debts and what the level of their contribution should be.

  • A new web-based bankruptcy application system.

  • Creditors are obliged to submit claims no later than 120 days after notification by the trustee.

“This new law places Scotland firmly at the forefront of efforts on how to help some of the most financially vulnerable in society,” commented Business Minister Fergus Ewing.

“It is only proper that we seek to do everything we can to help financially rehabilitate families and individuals on low incomes and with little by way of assets who are struggling with debt, while still offering a fair deal for those owed money,” he added.

“Taken as a whole, this pioneering legislation seeks to bring dignity to those people in Scotland seeking to break the cycle of debt once and for all,” he concluded.

Contact Us

We offer specialist debt advice solutions on a wide range of financial problems including bankruptcy, sequestration and corporate insolvency. For an hour of free expert advice, contact one of our debt solutions experts today on 0845 051 0210 or complete our online enquiry form here.

Source:

http://news.scotland.gov.uk/News/New-debt-law-comes-into-force-181c.aspx

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