Explanatory Note

(This note is not part of the Regulations)

These Regulations commence certain provisions of the Bankruptcy and Diligence (Scotland) Act 2024 (“the Act”).

Regulation 2(1) commences section 12 of the Act on 17 April 2025 but only for the limited purpose of enabling the Scottish Ministers to make Regulations under inserted section 147A(3), (5)(a) and (6)(b) of the Bankruptcy (Scotland) Act 2016 (“the 2016 Act”) to prescribe the forms that will be used in the process for the trustee to resign office on account of the debtor’s failure to co-operate. Regulation 2(2) will then bring into force sections 4, 5, 11 and 12 (in so far as not already in force) of the Act, on 25 June 2025.

Regulation 3 makes transitional provision in relation to the commencement of section 5 of the Act, which makes provision to determine the amount of interest payable on the debtor’s debts in relation to a recall of an award of sequestration. Regulation 3 makes transitional provision where a sequestration was awarded before 25 June 2025 and the award has not been recalled. In such cases, interest 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.

Regulation 4 provides that section 4 of the Act (process for applying for recall of an award of sequestration) has no bearing where before 25 June 2025 either an application for recall has been made to the Accountant in Bankruptcy (“AiB”) or AiB has notified the relevant parties under section 35(2) of the 2016 Act that recall should be granted.

The Bill for the Act received Royal Assent on 15 July 2024. Sections 21, 22 and 23 came into force the following day.