Scotland’s statutory debt solutions and diligence: policy review response

Closed 7 Oct 2022

Opened 12 Aug 2022


The Scottish Government committed to a policy review of both formal debt recovery mechanisms (known as diligence) and the statutory debt solutions (moratorium protection, bankruptcy, Protected Trust Deeds and the Debt Arrangement Scheme) with the aim of further enhancing and improving our system.

This consultation sets out the Scottish Government’s response to the second stage of the review. Stage 2 of the review has been stakeholder led and involved the creation of three dedicated working groups to look at key aspects of current statutory debt solutions. The working groups drew on a wide range of expertise and knowledge from representatives from all sectors involved in the debt landscape. Each working group produced a paper outlining its considerations and recommendations. Some of the issues considered were complex in that there were strongly opposing views amongst stakeholders - it was not always possible to reach a consensus on the best way forward. Where that was the case, the key arguments and information discussed were set out for ministers to consider further.

The review of diligence was taken forward separately through the Diligence Working Group which has produced and published its report and recommendations.

In light of the consultation and work undertaken to date, the Scottish Government’s response to these policy reviews, and its proposals for future action contained in this document are being opened to consultation over an abbreviated timeframe of eight weeks.

The feedback received during this consultation will enable us to finalise changes and plan for these to be taken forward, either through legislation, guidance or working with stakeholders.

Read the consultation paper.

Why your views matter

Consultation and feedback is an essential part of the policy making process. We want to make sure our statutory debt solutions continue to evolve and duly meet the needs of those who access them. To do this we are committed to continuously improving our legislation and processes and your feedback will be used to help shape policy. 


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