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Sandra condemns bankruptcy provision
Wednesday, 17 May 2006

Sandra White MSP has questioned a provision in the Executive's Bankruptcy and Diligence etc. (Scotland) Bill which would allow a creditor to apply for a court order forcing a debtor to sell property if more than £1500 is owed.  The Enterprise and Culture Committee which is scrutinising the bill is concerned that it may trigger a substantial rise in homeless people. 

Sandra said: "This measure is completely draconian.  There is no doubt that easy access to debt is forcing many people into difficulties.  There is £1trillion of personal debt in the UK at the moment and we need to do something about it but throwing people out of their houses for £1500 is frankly not on.

"I agree with the committee when they say they "believe there should be a presumption against selling a home to recover a debt if the end result is homelessness".

"On the one hand the Executive are trying to encourage first time buyers into the market, yet on the other they are threatening them with eviction for a paltry sum.  It is ridiculous.

"I will be asking the Executive whether they have conducted an economic assessment into what financial burden Local Councils can expect if this provision is passed.  The council have the responsibility to house the homeless yet in Glasgow they have no homes in which to house them!!  That however is another matter.

"Labour run Glasgow already has some of the poorest communities in Europe.  Now the Lib/ Lab Executive are threatening to exacerbate the situation!"
 


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