Draft Debt Recovery (Mental Health Moratorium) (Scotland) Regulations: consultation - summary report

Background

On 6 June 2024, the Bankruptcy and Diligence (Scotland) Bill was passed by Parliament and received Royal Assent on 15 July 2024 to become the Bankruptcy and Diligence (Scotland) Act 2024 (the “2024 Act”). This includes a power which enables Scottish Ministers to introduce a Mental Health Moratorium. Secondary legislation supporting the 2024 Act will contain the detail of the process for the Mental Health Moratorium.

The Economy and Fair Work Committee led on the scrutiny of the Act and issued a call for evidence which closed on 21 July 2023. On 13 November 2023 the Scottish Government published the Mental Health Moratorium Consultation which was formed from:

• the responses to the Economy and Fair Work Committee’s call for evidence
• the Mental Health Moratorium Working Group’s report of recommendations
• other stakeholder engagement which was undertaken

The feedback received to that consultation helped with the development of the draft Mental Health Moratorium Regulations which will support the 2024 Act. Subsequent engagement with stakeholders allowed further development of these draft Regulations, which has led to this consultation in which the Scottish Government sought views on the current draft provisions.