Support to help north-east people dealing with money and mental health problems is welcomed
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Aberdeenshire East MSP Gillian Martin has welcomed new legislation which will provide protections for people who are in debt and experiencing mental health problems.
The Bankruptcy and Diligence (Scotland) Bill includes the power to bring in a pause on debt recovery action until six months after the person has finished treatment.
People may be eligible to apply for the mental health moratorium if they are receiving mental health care or if a mental health professional has confirmed that their debt is contributing to their mental illness or is hindering their recovery.
Further detail of how the moratorium will work is included in separate regulations now before MSPs and will be subject to a public consultation.
The Bill also makes a number of technical changes to the Bankruptcy (Scotland) Act 2016, such as clarifying the time periods for appeals against decisions by the Accountant in Bankruptcy, the organisation responsible for overseeing bankruptcies.
It also makes some minor changes to the law covering how debt recovery is carried out in Scotland.
Ms Martin said: “When a person’s mental health is challenged it can have a significant impact on their ability to manage finances.
“This in turn can have a negative impact as the resulting financial challenges causes more harm to their wellbeing.
“This legislation will allow breathing space during which creditors cannot contact them, enabling them to complete their mental health treatment and access money advice services.”
