Mental Health Debt Recovery Moratorium Consultation

Published: November 30, 2023


The Bankruptcy and Diligence (Scotland) Bill contains powers which would allow Scottish Ministers to create a Mental Health Moratorium. This would protect people with serious mental health issues from debt recovery action.

To inform this, Scottish Government is seeking views on the proposed process for a Mental Health Moratorium. The feedback received during this consultation will enable them to finalise the process for the moratorium, and develop the necessary regulations (subject to the will of Parliament and the enabling power being passed).


Both the Bill and the moratorium are part of Scottish Government’s commitment to a policy review of Scotland’s statutory debt solutions, with the aim of further enhancing and improving the system.

Part of this review was undertaken by stakeholder-led working groups which recommended the introduction of a Mental Health Moratorium in Scotland. A Mental Health Moratorium Working Group was then formed to look at possible ways the moratorium could work in practice. The group’s membership includes mental health professionals, representatives from the debt advice community and the creditor sector. A series of meetings and in-depth discussions resulted in the publication of the Mental Health Moratorium Working Group – report of recommendations (linked for your convenience).

In April 2023, the Bankruptcy and Diligence (Scotland) Bill was introduced to Parliament; secondary legislation to support this Bill will contain the detail of the Mental Health Moratorium process, which is what Scottish Government is currently consulting on.

The Economy and Fair Work Committee is leading on the scrutiny of the Bill, with responses to their call for evidence on the Bill published on the Scottish Parliament website.

Consultation Details and How to Submit a Response

The basis of this consultation has been formed from the working group’s report of recommendations, the responses to the Committee’s calls for evidence, and other stakeholder engagement.

The deadline for responses is Monday 22nd January 2024.

To submit your response, or for further information, please visit the Scottish Government consultation website.

If you are unable to respond using the consultation website, or for further information, please contact the consultation team by email:

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