Press Release

23^rd December 2002

McNeil Welcomes Debt Advice Move
MSP for Greenock & Inverclyde, Duncan McNeil, has welcomed the increased help which is now at hand for those who’ve gone into the red to pay for the festive season.

New debt advice and information packs which signpost debtors to free money advice services are now available from money advice agencies, courts, trade associations, local authorities and other creditors.

The packs – entitled Dealing with Debt: Finding your Feet – are part of the arrangements introduced under the Debt Arrangement and Attachment (Scotland) Bill, which comes into force on 30^th December.

Mr McNeil said:

"Everyone stretches themselves a bit thinly over Christmas. For most of us, though, a bit of belt tightening in January is all we need to get back on an even keel.

"But what if your debts are more serious? What if you are still paying for last Christmas when the bills for this year start to arrive? If you are in this unenviable position, it is vital that you get the right advice and information. These packs will do just that – they will offer accessible and simple information about dealing with debt and will direct you to your local money advice services."

On the Debt Arrangement and Attachment (Scotland) Bill itself, Mr McNeil said:

"This Bill heralds major reforms and gives people new opportunities to deal with their debts free from the threat of enforcement. It also balances the legitimate rights of creditors with greater protection for vulnerable debtors. The new system will, I am sure, reduce the stigma associated with debt and help people in Greenock and Inverclyde with debt problems pay their debts in a way they can manage."

The Bill creates:

• The framework and power to make regulations for a statutory national debt arrangement scheme to help people repay debts in a managed way free from the threat of enforcement action;
• New incentives for debtors and creditors to reach negotiated settlements out of court;
• A new, less intrusive enforcement procedure which will target only those who can pay but won’t; and
• Provision of money advice and information in court within the court process.

The national debt arrangement scheme is a new debt management tool which will allow multiple debts to be paid over a period by single, regular and manageable payments distributed through a central point. All enforcement action will be stopped whilst a debtor is participating in the scheme. Regulations now need to be made under the Bill to set out the detailed arrangements for this scheme.
ENDS

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