The Bankruptcy and Debt Arrangement Scheme (Miscellaneous Amendment) (Scotland) Regulations 2023 aim to update and improve existing statutory debt solutions in Scotland by amending—

• the Bankruptcy (Scotland) Act 2016 (the 2016 Act);

• the Debt Arrangement Scheme (Scotland) Regulations 2011; and

• the Bankruptcy Fees (Scotland) Regulations 2018.

The regulations make four substantive amendments—

• Regulation 2 amends section 2(2) of the 2016 Act, removing the minimum debt threshold for entry into a Minimal Asset Process (MAP) bankruptcy. The minimum debt threshold is currently £1,500.

• Regulation 3(2) amends the Debt Arrangement Scheme (Scotland) Regulations 2011. It extends the application criteria for the Debt Arrangement Scheme (DAS) to include a reduction in disposable income of 50% or more for a deferment of payment of up to 6 months.

• Regulation 4(2) amends the Bankruptcy Fees (Scotland) Regulations 2018 to extend the criteria for waiving bankruptcy application fees, including the removal of all application fees for MAP bankruptcy.

• Regulation 4(3) amends the Bankruptcy Fees (Scotland) Regulations 2018 to increase the deposit that must be paid by creditors, where the Accountant in Bankruptcy is nominated as trustee in bankruptcy, to £750 (replacing the current fee of £300).

The Delegated Powers and Law Reform Committee considered the instrument at its meeting on 6 December and made no recommendations.

The Committee took evidence on the instrument from Tom Arthur MSP, Minister for Public Finance, Planning and Community Wealth at its meeting on 21 December.

Following the evidence session, the Minister moved motion S6M-06962—

That the Economy and Fair Work Committee recommends that the Bankruptcy and Debt Arrangement Scheme (Miscellaneous Amendment) (Scotland) Regulations 2023 be approved. be approved.

The motion was agreed to without division.