The Act captures all of the amendments made to the primary legislation governing bankruptcy in Scotland, the Bankruptcy Act 1985, including the wide-ranging reforms introduced in April 2015 through the Bankruptcy and Debt Advice Act 2014.

The legislation has been combined to make bankruptcy easier to understand for insolvency professionals, money advisers and those experiencing financial difficulties.

Paul Wheelhouse, minister for business, innovation and energy said: ‘Much has changed in the 30 years since the existing bankruptcy Act was introduced and there is no doubt it has become somewhat impenetrable.

‘This valuable work to clean up the statute book will make the legislation much easier to use and understand and has created the platform upon which debt solutions appropriate for the challenges we face today can be delivered.’

A consultation on consolidating bankruptcy legislation was published in 2011 and led to the drafting of the Bill.

The new Act is the second consolidation of primary legislation considered by the Scottish Parliament ever, following the Salmon and Freshwater Fisheries (Consolidation) (Scotland) Act 2003.

David Menzies, director of ICAS said: ‘The collaborative approach adopted by the Scottish Government, the Accountant in Bankruptcy and the profession through ICAS and other bodies to deliver the consolidated legislation reflects the desire of all to ensure there is an accessible and suitable framework for the people of Scotland to deal with debt problems.

‘The commencement of the new legislation is not the end of that process, but is the beginning of a fresh phase building on reinforced foundations.’