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PUTTING DEBT ADVICE CENTRE STAGE.
Scotland’s new bankruptcy and debt advice bill.
UKAR are committed to helping customers improve their
financial awareness. Signposting people towards sound
debt advice is a key part of that process.
A new Scottish Bankruptcy Debt and Advice Bill aims to
place this kind of support and education at its centre;
committed to bringing ‘a balance of fairness’ into the
provision and management of financial solutions for
consumers and businesses. With the first stage completed
last month, 2014 sees the formal introduction of the
completed legislation.
Here Yvonne MacDermid, Chief Executive of Money Advice
Serving Everyone Better
“The Bill has three main objectives designed to strike a
balance between the interests of debtors and creditors.
It aims to:
• Ensure there is a fair and reasonable process for people
experiencing debt problems enabling them to gain access
to debt advice and solutions.
• Make sure people who can pay their debts do so.
There are new procedures and controls in this area.
• Ensure creditors get the best return on what they are owed.
Scotland, explains in more detail what it means for debtors
and creditors and outlines the significance of debt advice
provision to its success. She says: “The Bill has been
introduced by the Scottish Parliament and will transform
the way bankruptcy is managed in Scotland.
“Clear and early debt advice, which will be compulsory,
takes a central role in all of the changes, bringing benefits for
both those in debt and their creditors. We believe that with
mandatory money advice at the heart of the Bill, it will provide
for improved consumer protection in 2014 and beyond.”
Easier, Earlier Access to Debt Advice
“It also introduces compulsory financial education for those
who are deemed to require it, including those people who
have been made bankrupt more than once or had a
Bankruptcy Restriction Order against them.
“There is also provision for debtors to elect to have financial
education. As an organisation we have been directly
involved in developing this area of the Bill and are creating
an e-module for debtors’ use. In the longer term this could
be used by others seeking to organise their finances better.
Value is placed on independent advice as a way of ensuring
“ Clear, early debt
advice, which will
be compulsory,
takes a central role
in all of the changes.”
Yvonne MacDermid, MAS.
that those in debt are offered the best support.
“As a general principle, clients should also be encouraged to
seek advice early in order to ensure agreements are reached
with their creditors before problems get worse. Bankruptcy
can be a complete life changer and the new Bill says that
before going into bankruptcy, advice must be sought. This
procedure already exists within the DAS Regulations in
respect of setting up a Debt Payment Programme, and
bankruptcy will be no different.
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UKAR ARENA WINTER 2013