Bankruptcy and Diligence (Scotland) Bill: equality impact assessment

Summary of aims and desired outcomes of policy

1. The Bankruptcy and Diligence (Scotland) Bill (the "Bill") will bring forward stakeholder-led recommendations to introduce improvements to current insolvency solutions and debt recovery processes. Its aim is to help and improve the lives of people who are struggling with debt, which may be exacerbated by mental health issues, bringing increased protection for those who need it. More efficient recovery processes will assist businesses and local authorities to collect debts from those who can pay.

2. The Bill will contain provisions that broadly fall into three categories:

• Enabling powers that provide the platform for the introduction of regulations to introduce a mental health moratorium - a new form of moratorium protection for a specific group of debtors, being those who are experiencing serious difficulties with their mental health as well as having problem debt
• Minor for technical amendments to existing bankruptcy legislation that would serve to correct errors and remove ambiguity by providing clarity on the operation of bankruptcy processes as set out in the legislation
• Diligence measures that modernise existing debt recovery mechanisms and allow for more streamlined and improved processes