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13 May, 2020 Open access

Provision to increase minimum debt level that an individual must owe before a creditor can make them bankrupt included in new Coronavirus (Scotland) (No.2) Bill

Provision also made to extend eligibility conditions for the less costly ‘minimal asset’ bankruptcy process

Provision for an increase in the minimum debt level that an individual must owe before a creditor can make them bankrupt has been included in the Coronavirus (Scotland) (No.2) Bill.

Among a range of measures designed to protect people facing financial hardship as a result of the coronavirus pandemic, the Scottish Government has confirmed that, if passed, the Bill will raise the minimum debt an individual must owe to a creditor, or a group of creditors, before they can make them bankrupt, from £3,000 to £10,000

In addition, other bankruptcy-related measures set out in the Bill include -

Welcoming the new measures, and highlighting that they supplement the six-month moratorium on creditor action provided for in the Coronavirus (Scotland) Act 2020, Constitutional Secretary Michael Russell said -

‘The Scottish Government is determined to do all we can to help individuals and businesses who are facing hardship as a result of this unprecedented crisis.

The Bill will help many people facing bankruptcy, adding to emergency measures which the Scottish Parliament has already approved.

... Throughout this crisis we have tried to achieve consensus and will continue to work on a cross-party basis to enable the government to take the steps necessary to help Scotland get through these extraordinary times.’

For more information, see Second Coronavirus (Covid-19) (Scotland) Bill from gov.scot