Bankruptcy and Attachment (Miscellaneous Amendment) (Scotland) Regulations 2026: equality impact assessment

Parties affected

The Regulations will predominantly affect individuals with problem debt and require to enter a bankruptcy process or where action is being taken against them by a creditor to recover an outstanding debt.

While increasing the qualifying debt level will allow more individuals to enter MAP bankruptcy it is unlikely to have impacts on creditors who are owed money by that individual. If the individual satisfies the criteria for entering MAP based on the level of their total assets and single asset value and they have been assessed by the Common Financial Tool as unable to make a contribution or been in receipt of excluded prescribed payments (benefits) then there will be no asset realisations or distributions to creditors. Amending the debt level will not prejudice the individual’s creditors as they wouldn’t be receiving any funds due to the debtor’s income position remaining the same in such cases either through a MAP bankruptcy or a Full Administration bankruptcy (which they may have had to enter simply by exceeding the maximum debt level to qualify for MAP bankruptcy). Additionally, tools of the trade, sentimental items and mobility scooters are rarely declared or sold in bankruptcies so it’s unlikely to have a significant effect on recoveries for creditors. Increases in values could reduce recoveries for creditors in diligence. While statistical information shows a declining number of attachments in diligence and increases in the values of these items could reduce the numbers further, accurate statistical information showing how often these types of items are attached, sold and amounts recovered by creditors is not available. There are no statistics on the protected characteristics of creditors.

The Regulations aim to strike a balance between the respective interests of these groups.