Bankruptcy Consultation - Financial Health
24 February 2012
You may have read recently of Government plans to create a Financial Heath Service with increased rights for creditors anticipated. The AIB states that a “new vision and ambition” is needed to overhaul the bankruptcy process in Scotland which should support the principle that those debtors who can pay should pay their debts.
It is envisaged that the new FHS will bring into line the cost of a Scottish Sequestration with the sum charged for an English Bankruptcy. It is hoped that the resultant and dramatic rise in the fee payable will reduce the level of abuse linked to the trust deed system. The new Financial Health Service should ensure that the rights and needs of those in debt are better balanced with the needs of creditors and business. We anticipate a range of products which recognise the difference between individuals, sole traders and partnerships and which focus on individual responsibility.
The AIB are currently engaged in studying how other countries treat the issue and we hope to provide our clients with note of their progress and proposals in a following update.