Bankruptcy and Diligence (Scotland) Act 2024

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.