Debt and HomesThe treatment of dwelling homes in

bankruptcy and PTDs

Programme

• Introduction

• Background

• The Debt Action Forum

• Debt and Homes consultation

• Progress

• Questions for discussion

• Agree main points to feedback

• Close

Debt and Homes

• January 2009, stakeholder groups invited to join Fergus Ewing, Minister for Community Safety, in the Debt Action Forum (DAF)

• Short life working group examined debt relief, debt advice and repossessions and considered legislative and non-legislative measures

• Sub-group of the Forum, the Repossessions Working Group, specifically looked at the issue of repossession.

The Debt Action Forum

• DAF and Repossessions Working Group presented reports in June 2009

• Clear that there were some areas in which there was broad consensus

• Some matters which demanded consideration by a wider cross section of interested parties

• The Home Owner and Debtor Protection (Scotland) Act 2010

The Debt Action Forum

• DAF received a paper on land attachment and discussed other far reaching issues

• It was considered that some of the issues discussed raised important questions of principle or were controversial

• Scottish Ministers decided that prior to any legislation, those issues should be considered further by full public consultation

Debt and Homes consultation

The proposed Debt and Homes consultation will:

• Allow the Scottish Government to consider the way forward with land attachment and to build on the work of the DAF

• Invite opinion on whether further changes should be introduced to help protect people from losing their home unnecessarily in the event of bankruptcy or upon entering a trust deed

• Invite opinion the extension of protections in respect of the home in bankruptcy and trust deeds provided by section 40 of the Bankruptcy (Scotland) Act 1985 (as amended), to other categories of residents

Debt and Homes consultation

The proposed consultation may also look at:

• The expansion of the role of the Accountant in Bankruptcy to allow the provision of information on sources of advice to debtors in limited specified circumstances

• The timing of the provision of the Debt Advice and Information Package (DAIP)

• Changes to provisions relating to gratuitous alienations, unfair preferences in bankruptcy and a number of other matters broadly relating to diligence and bankruptcy

Debt and Homes

Progress to date:

• Consultation currently in development

• Some initial stakeholder engagement has taken place

• AiB gathering data on heritable realisations in bankruptcy

• Planned to be published after Scottish Parliamentary Election, subject to Ministerial priorities

Discussion

• Land attachment

• Treatment of the home in bankruptcy

• Potential options for change

Feedback

What can we take away from this workshop?

• Main issues

• Key benefits

• Future activity

Claire Keggie, Head of Policy and Compliance0300 200 2699, Claire.Keggie@aib.gsi.gov.uk

THANK YOU