These Regulations were laid in the Scottish Parliament on 12 December 2024 and are due to come into force on 20 January 2025.

With these Regulations, sections 6, 8, 9 10, 13, 17, 19 and 20 of the Bankruptcy and Diligence (Scotland) Act 2024 (‘the Act’) will come into force on 20 January 2025 and primarily make modifications to the Bankruptcy (Scotland) Act 2016 (“the 2016 Act”) and the law of diligence.

Regulation 3 makes transitional provision in relation to the commencement of section 9 of the Act (time periods for appeals against decisions by the Accountant in Bankruptcy (“AiB”)) and provides that:

• in relation to section 69 of the 2016 Act, where a determination of the commissioners, fixing the amount of outlays and remuneration payable to a trustee in sequestration (or their representatives) on their resignation or death has been appealed to AiB, and AiB has issued a decision before 20 January 2025, that decision may be appealed to the sheriff up to 14 days after that date, instead of within 14 days after that decision;

• in relation to section 134 of the 2016 Act, where a determination of commissioners fixing the amount of outlays and remuneration payable to a trustee has been appealed to AiB and AiB has issued a decision before 20 January 2025, that decision may be appealed to the sheriff up to 14 days after that date, instead of within 14 days after that decision.

Regulation 4 provides that section 10 of the Act (protected trust deeds: information and time to be provided to debtor) has no bearing on a trust deed granted by the debtor before 20 January 2025.

Regulation 5 provides that section 17 of the Act (provision of debt advice and information package) has no bearing on a creditor application for warrant for diligence on the dependence made to the court before 20 January 2025.

·        The Regulations (Link)

·        The Bankruptcy and Diligence (Scotland) Act 2024 (Link)

·        The Bankruptcy (Scotland) Act 2016 (Link)

Sections of the Act coming into force –

Modification of the Bankruptcy (Scotland) Act 2016

6 When sequestration is awarded: minimal asset process

(1)Section 22 (when sequestration is awarded) of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)In subsection (1)(b), for “2(8)” substitute “2(2) or (8)”.

8 Gratuitous alienations: right acquired in good faith and for value

(1)Section 98 (gratuitous alienations) of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)In subsection (7), for “(6)” substitute “(5)”.

9 Time periods for appeals against decisions by AiB

(1)The Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)In section 69 (resignation or death of trustee)—

               (a)in subsection (9), for “subsection (11)” substitute “subsections (11) and (12)”,

               (b)for subsection (12) substitute—

“(12)T or T's representatives, NT, the debtor or any creditor may, within 14 days beginning with the date of any decision of AiB in an appeal under subsection (11)(a), appeal to the sheriff against that decision.”.

(3)In section 134 (appeal against determination as to outlays and remuneration payable to trustee)—

               (a)for subsection (3) substitute—

               “(3)The trustee, the debtor or any creditor may, within 14 days beginning with the date of any decision of AiB in an appeal under subsection (1)(a), appeal to the sheriff against that decision.”,

               (b)in subsection (4), after “(1)” insert “or (3)”,

               (c)after subsection (5), insert—

“(6)The decision of the sheriff on an appeal under subsection (1)(b) or (3) is final.”.

10 Protected trust deeds: information and time to be provided to debtor

(1)Part 14 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)In section 167 (statements in and advice regarding trust deed)—

               (a)in subsection (3), for paragraph (b) substitute—

               “(b)the trustee must provide the debtor with—

                              (i)a copy of a debt advice and information package, and

                              (ii)a copy of a trust deed information document,

               (ba) the trustee must give the debtor adequate time to consider the advice and material provided under paragraphs (a) and (b),”, and

               (b)after subsection (3), insert—

“(4)For the purposes of subsection (3) a “trust deed information document” means a document containing such information (including information regarding the consequences of granting a trust deed), and in such form, as the Scottish Ministers may determine.

(5)The trustee must have regard to any guidance issued by the Scottish Ministers about giving debtors adequate time to consider the advice and material provided under paragraphs (a) and (b) of subsection (3).

(6)The Scottish Ministers must publish any guidance issued under subsection (5).”.

13 Commissioners: disqualification from office where AiB is trustee

(1)Part 4 of the Bankruptcy (Scotland) Act 2016 is modified as follows.

(2)In section 76 (commissioners), in the opening words, after “sequestration” insert “where AiB is not the trustee”.

(3)In section 77 (election, resignation and removal of commissioners), after subsection (6), insert—

“(6A)A commissioner ceases to hold office if AiB is, or becomes, the trustee.”.

Diligence on the dependence

17 Provision of debt advice and information package

(1)Part 1A of the Debtors (Scotland) Act 1987 is modified as follows.

(2)In section 15F (hearing on application)—

               (a)in subsection (3)—

                              (i)the word “and” immediately following paragraph (b) is repealed,

                              (ii)after paragraph (c), insert “; and

               (d)where the debtor is an individual, that the creditor has provided the debtor with a debt advice and information package.”,

               (b)after subsection (7), insert—

               “(8)In this section and in section 15K, “debt advice and information package” means the debt advice and information package referred to in section 10(5) of the Debt      Arrangement and Attachment (Scotland) Act 2002.”.

(3)In section 15K (recall or restriction of diligence on dependence)—

               (a)after subsection (5), insert—

               “(5A)Where subsection (5B) applies and the court is satisfied that the creditor has not provided the debtor with a debt advice and information package it—

               (a)must make an order—

                              (i)recalling the warrant, and

                              (ii)if an arrestment or inhibition has been executed in pursuance of the warrant, recalling that arrestment or inhibition, and

               (b)may make an order ancillary to any order mentioned in paragraph (a).

(5B)This subsection applies where—

               (a)the debtor is an individual, and

               (b)the hearing is a hearing fixed under section 15E(4)(a).”,

               (b)in subsection (10), after “(5),” insert “(5A),”.

Money attachment

19 Money attachment when premises are open

(1)Section 176 (when money attachment not competent) of the Bankruptcy and Diligence etc. (Scotland) Act 2007 is modified as follows.

(2)After subsection (2), insert—

“(2A)But—

               (a)despite subsection (1), it is competent to execute a money attachment in any premises in which a trade or business is carried on on any day the premises are open (whether to the public generally or not) for the purposes of the trade or business, and

               (b)despite subsection (2), the execution of a money attachment may be commenced or continued in such premises at any time the premises are open (whether to the public generally or not) for the purposes of the trade or business, without the officer of court obtaining prior authority of the sheriff.”.

Arrestment of ships

20 Arrestment of ships on a Sunday

Any rule of law that prevents the execution of an arrestment on a Sunday ceases to have effect insofar as it relates to the arrestment of ships.