The Coronavirus (Scotland) (No.2) Act 2020

The Coronavirus (Scotland) (No.2) Act

The Coronavirus (Scotland) (No.2) Act came into force today (Wednesday 27 May 2020) after receving Royal Assent yesterday. 

These are temporary changes – initially five months, but with the possibility of extension in the same way as the first Coronavirus Act.

Details of the changes to the bankruptcy process are outlined below:

Minimal Asset Procedure (MAP) Bankruptcy Applications

The Bill makes a number of changes regarding MAP administration:

  • the debt ceiling is increased from £17,000 to £25,000:
  • student debt is exempted from the debt ceiling calculation; and
  • MAP application fees are removed for those in receipt of specified benefits, and reduced to £50 from the current £90 for all others.

Full Administration Bankruptcy

Bankruptcy applications which do not satisfy MAP criteria are subject to full administration.  Currently, the application fee in full administration bankruptcies is £200, this will be reduced  to £150 and is waived for those in receipt of specified benefits.

Qualified Creditors

Creditors may petition for the sequestration of individuals / entities when owed at least £3000.  This minimum debt threshold will be increased to £10,000.

Bankruptcy Administration

Building on the provisions of the Coronavirus (Scotland) Act, the new bill makes a number of changes to expedite bankruptcy administration process:

  • the deadline for trustees to send their DCO proposals to AiB in creditor petition bankruptcies is increased from 6 to 12 weeks;
  • virtual statutory meetings of creditors are permitted;
  • all statutory forms detailed in the Bankruptcy (Scotland) Regulations can be completed with electronic signatures; and
  • bankruptcy circulars may be sent electronically with the assent of the recipient.

Registers of Scotland

The Bill also includes a provision to introduce electronic transmission of inhibitions and inhibition renewals to Registers of Scotland.  

Further information

Details of the Coronavirus (Scotland) (No.2) Bill can be found on the Scottish Parliament website here (link is external). 

If you require any more information in the meantime, please send an email to

AiB has a dedicated page on our website specific to emergency protocols and updates during the COVID-19 pandemic. It is advisable to check our website regularly for any updates, or sign up here to register to be notified whenever we publish new information.