The Bankruptcy and Diligence (Scotland) Act 2024 (Commencement No.2, Transitional and Saving Provisions) Regulations 2025
IPA Insolvency Practitioner newsletter, April 2025
The Bankruptcy and Diligence (Scotland) Act 2024 (Commencement No.2, Transitional and Saving Provisions) Regulations 2025 were laid in Parliament on 3 April 2025. They will bring into force sections 4, 5, 11 and 12 of the Bankruptcy and Diligence (Scotland) Act 2024 (“the 2024 Act”), subject to transitional and savings provisions, on the 25 June 2025.
They primarily make modifications to the Bankruptcy (Scotland) Act 2016 (“the 2016 Act”) by:
- making minor amendments to clarify the process for applying for recall of sequestration. These will only apply where an application for recall has not been made before 25 June 2025
- where a debtor is seeking a recall of sequestration, it will not be a condition for recall for interest to be paid on their debts if the whole of those debts are paid in full within 6 months of the award of sequestration. For existing cases interest accrued on the debt between the date of sequestration and the date of payment of the debt is not payable if payment of the debt is made in full within 6 months after 25 June 2025
- allowing a trustee in sequestration to resign if the debtor cannot be traced and clarifies that the trustee is entitled to take outlays and remuneration from the ingathered estate up to the date of their resignation
- introducing a new process for a trustee to resign from office, when a debtor has failed to cooperate, by applying for the Accountant in Bankruptcy to take over as trustee