Home debt plan 'rogues' charter'

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Scottish government plans to make it more difficult for houses to be repossessed have been branded a "rogues' charter".

The Home Owner and Debtor Protection Bill would make it more difficult for creditors to sell the family property.

Insolvency practitioners Wilson Andrews claimed it could allow unscrupulous borrowers to rack up debt, certain they would not lose their homes.

The government said it was keen to consult on the proposals.

The planned legislation, currently going through parliament, aims to give those who owe money greater protection from losing their family home.

'Real danger'

But some, whose job it is to get money back for creditors, have claimed the plans go too far.

Wilson Andrews insolvency partner, Barry Stewart, warned: "There is a very real danger of moral hazard if the family home is completely withdrawn as an asset.

"It is not difficult to imagine a situation in which an unscrupulous debtor buys an expensive property partly funded by unsecured debt whilst failing to pay his creditors in the full knowledge that the unsecured creditors will not be able to rely on the equity in the house towards settlement of their claims.

"It could result in the development of a rogues' charter."

A Scottish government spokesperson said it was vital to take action, adding: "With an increasing number of families facing financial difficulties, it is imperative that they are protected with the full weight of the law.

"The introduction of the bill provides an opportunity to consult and we welcome submissions from all interested parties."