You are here

New exemptions from bankruptcy fees to be introduced

CAS has welcomed the passing today of amendments to the Coronavirus Scotland No. 2 Bill that will introduce exemptions for people receiving social security and on low incomes from paying fees should they fall into debt and require a bankruptcy. 

Citizens Advice Scotland Financial Health spokesperson Myles Fitt said:

“These exemptions from upfront fees to enter a bankruptcy are very welcome.

“People on benefits or low incomes who are also in debt are in no position to fund payment of a fee for getting this form of debt relief. With a significant increase in debt and potential bankruptcies expected due to the economic effects of COVID-19, the removal of these fees will ease the burden on those who are financially struggling.

“As we go deeper into the financial impact of this pandemic, we urge all decision-makers to do everything they can to lessen the financial pain that will be felt by many individuals, families and households across Scotland."

CAB tags