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Bankruptcy and Debt Advice (Scotland) Act 2014

Discharge following sequestration

Section 18 – Repeal of discharge on composition

37.This section repeals section 56 (‘discharge on composition’), section 56K (‘effect of discharge on approval of offer of composition’) of and schedule 4 to the 1985 Act. Changes made by this section provide for the removal from sequestration of the option for the debtor to propose a composition settlement (a debt relief settlement where debtors must offer partial repayment of no less than 25 pence in the pound) with the creditors in return for a final discharge of their claims.

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Text created by the Scottish Government to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills.

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