New Laws to Give "Greater Protection" to Homeowners

18 February 2010

In the current financial climate, repossession remains a very real and worrying threat to many homeowners. However, homeowners faced with repossession will be given greater protection under legislation passed by MSPs, according to the Scottish Government.

The successful passage of the Home Owner and Debtor Protection (Scotland) Bill was approved with a unanimous vote.

The main proposals in the bill include:

• Improving protection for Scottish homeowners faced with repossession at each stage of the repossession process, in particular by ensuring that all repossession cases are heard in court (except where there is evidence that the property has been voluntarily abandoned).
• Requiring all lenders to demonstrate in court that they have taken reasonable steps to avoid repossession.
• Allowing lay representation from approved organisations to make it easier for homeowners to present a defence in court.
• Extending the debt relief offered by bankruptcy to some who cannot presently meet bankruptcy criteria by introducing a certificated route into bankruptcy.
• Extending the protection currently offered for the family home in bankruptcy and to trust deeds.

We will endeavor to provide any further updates on the Bill as it progresses, however, if you require any legal advice on repossession, please telephone us on 01463 239393.