The Bankruptcy and Diligence etc (Scotland) Bill is currently undergoing committee scrutiny at the Scottish Parliament. The Enterprise and Culture Committee is considering it's Stage 1 Report on the Bill, which will recommend to the Parliament whether the Bill should be taken forward to the next stage of scrutiny. The Bill mirrors the Enterprise Act 2002 of the Westminster Parliament.
The Federation of Small Businesses (FSB) has expressed concern over parts of the Bill. The Bill recommends that the length of time that bankrupts are compelled to declare themselves as such should be reduced from three years to one. It is believed that this change in the law would increase business creation by allowing bankrupts to get back into business as soon as possible.
The FSBs concern lies in the belief that this law could be abused by those who are able to pay their creditors but wish not to. Leading to increased costs for businesses that would not be paid for their goods or services.
The call for evidence relating to this Bill has now closed, however it is possible to read the FSBs written evidence and follow the progress of the Bill on the Scottish Parliament's website.