The Bankruptcy (Scotland) Amendment Regulations 2024 Island Communities Impact Assessment Screening

Recommendation

35. A full Islands Community Impact Assessment is NOT required.

36. In preparing the Island Communities Impact Assessment, I have formed an opinion that our policy or strategy is NOT likely to have an effect on an island community which is NOT significantly different from its effect on other communities (including other island communities). The reason for this is detailed below.

37. This instrument will amend the methodology for calculating the prescribed rate of interest on creditors’ claims, where there are sufficient funds available to settle these claims in full, from a fixed 8% at the date of sequestration to the Bank of England base rate plus 2% at the date of sequestration.

38. The order of priority of distribution of the estate, including interest on creditors’ claims, is laid out in the 2016 Act and applies to all bankruptcy cases irrespective of the location of the party who is bankrupt or of their creditors. We do not consider therefore that the amendment will differently affect or impact those on island communities.