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More flexibility vowed for Scots in debt during Covid-19 crisis

The Accountant in Bankruptcy body has announced a series of emergency measures.

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The Accountant in Bankruptcy is suspending sales and evictions from properties (Dominic Lipinski/PA)

The Accountant in Bankruptcy is suspending sales and evictions from properties (Dominic Lipinski/PA)

The Accountant in Bankruptcy is suspending sales and evictions from properties (Dominic Lipinski/PA)

Evictions from properties have been suspended as a result of the coronavirus pandemic by the government body that handles bankruptcies in Scotland.

Accountant in Bankruptcy (AiB) said it has also suspended sales of properties involved in bankruptcy cases until further notice.

The move is part of emergency measures being introduced by the Scottish Government agency in response to the Covid-19 outbreak.

The AiBi is seeking to simplify the procedures for those seeking to become bankrupt, with greater flexibility also promised for those who need more time to pay back cash owed through a Debt Arrangement Scheme.

AiB deals with approximately 80% of bankruptcy cases in Scotland and it has urged other trustees to show similar leniency and flexibility.

Scottish business minister Jamie Hepburn welcomed the new measures, saying: “This pandemic will have severe economic consequences and we are treating it as an economic emergency, affecting everyone from the largest conglomerates to small businesses and individuals.

“The Scottish Government is working hard to respond to this and we’ve announced a £2.2 billion package of measures to support businesses.

“We’re asking banks, insurance companies and our own departments to be flexible and compassionate wherever possible, including offering mortgage holidays and extending timescales for those in persistent credit card debt.

“This will help reduce the pressure on individuals facing financial difficulties caused or made worse by the current crisis, and we are actively considering what more we can do to help.”

PA