Removal of bankruptcy fees

Removal of bankruptcy fees

25th May 2020

New exemptions from bankruptcy fees to be introduced

On Wednesday, CAS welcomed the passing 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."