Bankruptcy and Diligence (Scotland) Bill: business and regulatory impact assessment

Options

28. There are two main options:

Option 1 – Do nothing

29. Under this option, the Bill will not be introduced and the legislation will remain as it is. The proposals were originally recommended by stakeholders to improve on the current statutory debt solutions and diligence processes in Scotland and help and improve the lives of people who are struggling with debt, which may be exacerbated by mental health issues. By not introducing the changes, in particular the mental health moratorium, stakeholders would consider the current protections not sufficient. It will also mean cross referencing errors and possible ambiguity in interpreting legislation which have been highlighted will remain uncorrected.

Option 2 – Introduce the draft Bill

30. Under this option, the provisions outlined and implemented though the Bill will be introduced, realising the changes to the law listed above.

Sectors and Groups Affected

• Debtors
• Creditors
• Insolvency practitioners
• The money advice sector
• Sheriff officers, officers of court and Messengers-at-Arms
• Accountant in Bankruptcy
• Local authorities
• Third sector
• Mental health profession
• The broader Scottish economy