Planning for affordability

A CONTROVERSIAL NEW LAW in Scotland that could see people lose their homes over £3,001 worth of unsecured debt was passed in the Scottish Parliament yesterday after the executive ignored last-minute pleas from opposition MSPs and charities. Go here or here for more details.

The Bankruptcy & Diligence Etc (Scotland) Bill means creditors can apply for a land attachment order against people with more than £3,000 of unsecured debt. If the debt is not repaid within six months the home or land can be sold.

Campaigners said the law would force people into the hands of loan sharks and increase homelessness.

But the executive said it was fairer than existing legislation. It had compromised by increasing the limit from £1,500 but refused an amendment that would have exempted homes and promised the new law would be used sparingly with a review after two years.