The Bankruptcy and Diligence (Scotland) Act 2024 (Commencement No.2, Transitional and Saving Provisions) Regulations 2025 were laid in Parliament on 3 April 2025.

These Regulations will bring into force sections 4, 5, 11 and 12 of the Bankruptcy and Diligence (Scotland) Act 2024 (“the 2024 Act”), subject to transitional and savings provisions, on the 25 June 2025.

They primarily make modifications to the Bankruptcy (Scotland) Act 2016 (“the 2016 Act”)  by:

• making minor amendments to clarify the process for applying for recall of sequestration. These will only apply where an application for recall has not been made before 25 June 2025
• where a debtor is seeking a recall of sequestration, it will not be a condition for recall for interest to be paid on their debts if the whole of those debts are paid in full within 6 months of the award of sequestration. For existing cases interest accrued on the debt 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
• allowing a trustee in sequestration to resign if the debtor cannot be traced and clarifies that the trustee is entitled to take outlays and remuneration from the ingathered estate up to the date of their resignation
• introducing a new process for a trustee to resign from office, when a debtor has failed to cooperate, by applying for the Accountant in Bankruptcy to take over as trustee

The Regulations make provision for the commencement of section 12 of the 2024 Act on 17 April 2025 but only for the limited purpose of enabling Scottish Ministers to make Regulations under inserted section 147A(3), (5)(a) and (6)(b) of the 2016 Act.

More information on these provisions is included in the Policy Note.

To support the commencement and implementation of the policies underpinning sections 4 and 12 of the 2024 Act, consequential amendments are required to further parts of secondary legislation. 

These amendments will be brought forward in a further set of Regulations called The Bankruptcy and Diligence (Scotland) Act 2024 (Consequential Amendments and Forms) Regulations 2025 which, if passed by Parliament, will come into force on 25 June 2025.

Further information on this will follow.