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MINISTERIAL FOREWORD
There are no winners when people are unable to pay their debts. It is therefore important that the laws of bankruptcy are both fair and humane, so that creditors get a fair share of any funds and debtors get relief from their debt burden.
The Bankruptcy and Diligence etc. (Scotland) 2007 Act will reform personal insolvency in Scotland. The Act will give Scottish Ministers new powers to change Protected Trust Deeds. Changes to Protected Trust Deeds will sit alongside reforms to sequestration (personal bankruptcy) and the Debt Arrangement Scheme in order to create a modern system of personal insolvency which strikes the right balance between the interests of debtors and creditors.
In January 2006 the Scottish Executive consulted on the changes we plan to make to Protected Trust Deeds using the new powers I was seeking at that time.
Many people responded to that consultation, and others set out how and why they thought trust deeds should change when they gave evidence to the Scottish Parliament during the passage of the Bankruptcy and Diligence etc. (Scotland) Act 2007.
I have listened carefully to all that has been said, and I am persuaded that we need to consider the impact of trust deeds on more susceptible creditors such as Credit Unions. It is right, therefore, to give those who would be affected by any further changes a chance to comment before a decision is made.
This second consultation on trust deed reform is that chance, and I therefore welcome your views.
Allan Wilson, MSP
Deputy Minister for Enterprise and Lifelong Learning
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