Bankruptcy and Diligence (Scotland) Act 2024
Consultation on debt recovery.
SFHA is considering a response to draft regulations for the moratorium on debt recovery action by creditors for individuals who have a serious mental illness: The Debt Recovery (Mental Health Moratorium) (Scotland) Regulations 2025. The Bankruptcy and Diligence (Scotland) Act 2024 received Royal Assent on July 15 2024 and enables Scottish Ministers to create a moratorium on debt recovery action in these circumstances.
A consultation opened this week and will close on March 17 2025. We await an appointment to discuss the draft regulations with the lead Accountant in Bankruptcy team and colleagues in the rented housing team to discuss the scope and potential implications of these regulations.
The draft regulations on the Mental Health Moratorium do not currently include protection from eviction, but the lead team is asking views on how the proposed regulations will interact with existing eviction protections (from landlords, support services, courts/tribunals, and the Housing Bill proposals) in the consultation, “to ensure that the Mental Health Moratorium and evictions protections work effectively together in practice.”
We will keep members updated on a potential SFHA response and accompanying member engagement in the New Year.