Bankruptcy and Diligence (Scotland) Act 2024

Mental health moratorium

1 Moratorium on debt recovery action: debtors who have a mental illness

(1) The Scottish Ministers must by regulations make provision establishing a moratorium on debt recovery action by creditors against individuals who have a mental illness.

(2) Regulations under subsection (1) may (among other things) include provision about—

(a) the eligibility criteria, or conditions, which must be met for the moratorium to apply in relation to an individual,

(b) the types of debts in respect of which the moratorium applies,

(c) the process for determining if the eligibility criteria, or conditions, are met (for example, by conferring functions on a person or persons of a description specified in the regulations),

(d) the time period for which the moratorium is to apply in relation to an individual (“the moratorium period”),

(e) the actions creditors must, may or may not take during the moratorium period in relation to an individual who is the subject of the moratorium and the consequences (if any) for creditors for taking or failing to take such actions,

(f) the obligations on an individual who is the subject of the moratorium during the moratorium period,

(g) the arrangements for the recording of, and access to, information that the moratorium is applying in relation to an individual,

(h) appeals against decisions made under the regulations,

(i) the obligations, or restrictions, on an individual or creditors following the end of the moratorium period.

(3) Regulations under this section may—

(a) make different provision for different purposes,

(b) modify any enactment,

(c) include incidental, supplementary, consequential, transitional, transitory or saving provision.

(4) Regulations under this section are subject to the affirmative procedure.

2 Procedure for first regulations under section 1

(1) The Scottish Ministers must, before laying a draft of a Scottish statutory instrument containing the first regulations under section 1 before the Scottish Parliament—

(a) lay a copy of the proposed draft regulations before the Scottish Parliament for a period of 60 days,

(b) have regard to any representations about the proposed draft regulations that are made to them.

(2) When laying a draft of a Scottish statutory instrument containing the first regulations under section 1, the Scottish Ministers must also lay before the Scottish Parliament a statement setting out—

(a) details of any representations mentioned in subsection (1)(b),

(b) the changes (if any) they have made to the regulations in response to such representations and their reasons for making them.

(3) In calculating any period of 60 days for the purposes of subsection (1), no account is to be taken of any time during which the Parliament is dissolved or is in recess for more than 4 days.

3 Review of mental health moratorium

(1) The Scottish Ministers must, as soon as reasonably practicable after the end of the review period—

(a) undertake a review of the operation of the mental health moratorium established under section 1,

(b) prepare a report on that review.

(2) The Scottish Ministers must, as soon as reasonably practicable after preparing the report—

(a) publish the report, and

(b) lay the report before the Scottish Parliament.

(3) For the purposes of this section, “the review period” is the period of 5 years beginning with the day on which the first regulations under section 1 come into force.