Stage 3 public consultation opens on proposals to reshape the regime

The final report of the independent Stage 3 review of Scotland's statutory debt solutions was published on 12 March 2026, setting out 52 recommendations for consideration by Scottish Ministers¹. The review, led by Yvonne MacDermid OBE, who was appointed by Scottish Ministers in September 2023, has been run independently of the Accountant in Bankruptcy (AiB) and the Scottish Government¹.

The wider review was committed to in September 2019 and agreed to consist of three stages¹. Stage 1 concluded with the Bankruptcy (Miscellaneous Amendments) (Scotland) Regulations 2021 coming into force on 29 March 2021, which made permanent some emergency measures introduced through the Coronavirus (Scotland) (No.2) Act 2020¹. Stage 2 was undertaken by three stakeholder-led working groups, and the proposals requiring primary legislation were introduced in the Bankruptcy and Diligence (Scotland) Act 2024, which came into force on 15 July 2024¹. The Act is being commenced in stages to factor in other associated work, such as amendments to court rules and further stakeholder engagement¹.

Stage 3 formally launched in March 2024 with a stakeholder roundtable, followed by a call for evidence that ran from 27 April to 21 June 2024¹. A public consultation setting out proposals to reshape the regime was published on 12 March 2025 and closed on 4 June 2025¹. Two nationally representative surveys were carried out by ScotPulse on behalf of the review team, one with people with personal debts only and one with self-employed small business owners, and the outputs were published on 12 March 2026¹. The review team also facilitated focus groups with consumers².

The AiB said of the review's scope:

The report should be read together with the Stage Three Review: Feedback and Recommendations report, which summarises responses to the March 2025 consultation and explains the rationale for each recommendation¹. The review team noted that Scottish local authorities were generally underrepresented in the pool of respondents, and that it has been mindful of this in reporting its findings². The review team also said it has been in regular contact with the Insolvency Service in England and Wales throughout the review, given the similar remit of the ongoing Personal Insolvency Review².

Why it matters for households

The review covers Scotland's statutory debt solutions, which include the Debt Arrangement Scheme, Protected Trust Deeds and bankruptcy, as well as moratorium and corporate insolvency². People in Scotland who use these routes are affected by the regime the review examined. The 52 recommendations are for consideration by Scottish Ministers and are not, on the published record, decisions that change the rules; the report sets out proposals rather than measures in force¹. The consultation that informed them ran from 12 March 2025 to 4 June 2025, and the final report and supporting documents were published on 12 March 2026¹. No changes to the operation of individual debt solutions have been reported as taking effect from the report's publication.

What happens next

A response from the Scottish Government will be published after the Parliamentary election, and when the government is in place¹. No date for that response has been reported. The Stage 3 consultation and the wider review process are covered in the site's guide to consultations and discussion papers, and further developments in regulation and policy.