Debtor Protections in Scotland to Remain in Place Until September

A series of measures brought in to help debtors during the coronavirus pandemic are set to be extended in Scotland until September 2021.

Legislation to that effect is being brought forward in Holyrood with the consequence being that various important protections for people in debt will be retained throughout the summer and into the autumn.

Among the protections being reimposed will be the option of requesting a six-month moratorium on actions by sheriff officers against people who owe creditors money they can’t afford to pay.

Those moratoriums will be on a statutory footing, meaning that it’s not legal for debt collectors to pursue debtors as they might otherwise want to outside the pandemic scenario.

It may be important to get advice from experts on the details of making such a request but the extension of emergency coronavirus legislation should mean that Scots can request a moratorium and avoid being chased by their creditors without any problems.

Creditors can still request that their debtors be entered into sequestration but the minimum debt threshold in such an instance has been increased from £3,000 to £10,000.

That minimum threshold is to be maintained through until September 2021 across Scotland while the country remains on an emergency footing due to the ongoing virus crisis.

Another measure or form of protection for debtors being kept in place for the next few months is the ban on evictions of people who have fallen behind on their residential rents.

It is well understood and evidenced by debt help charities such as StepChange and others that problems with debt have been building up throughout the months since the Covid-19 crisis began.

There are widespread concerns that once the pandemic is over there will be millions of people in Scotland and across the UK struggling to deal with their debts.

However, the maintenance of the various protections for debtors will at least give people in Scotland more time to resolve some of their issues and get the help they need in addressing their debts and dealing with their creditors.

If you live in Scotland and you’re worried about your personal debts then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.