The Bankruptcy and Diligence (Scotland) Bill is now at stage 3 of the Parliamentary process. The Bill’s main provision is an enabling power which will permit Scottish Ministers to introduce a mental health moratorium through regulations. This is to allow for the creation of a bespoke moratorium protection for those struggling with problem debt and serious mental health issues.

As the detail of the mental health moratorium will be in secondary legislation, the Scottish Government committed to share a copy of the draft regulations with the Economy and Fair Work Committee, the lead committee on the Bill, prior to stage 3 of the Bill. This will allow Parliament an opportunity to consider the potential process of the moratorium prior to the final vote on the Bill.

A copy of the draft Mental Health Moratorium Regulations are now with the Economy and Fair Work Committee. Please note - this is not the final version of the regulations. A further draft will be subject to a full public consultation before the summer. This will be an opportunity to provide comments on the draft regulations. The provisions within the draft regulations marked in square brackets will require further advice from stakeholders . 

These draft regulations reflect extensive work undertaken to engage with stakeholders from all relevant sectors, building on the responses to the earlier consultation which itself was largely based on the mental health moratorium working group’s report of recommendations. AiB is very grateful to all those who have helped so far, and look forward to working further together in the coming months to design something that can really help those who need it