MSPs voted in favour of the new proposals - which will replace the old system of poindings and warrant sales - by 82 votes to four, with 28 abstentions.

The Debt Arrangement and Attachment (Scotland) Bill includes incentives to negotiate settlements, a provision for financial advice and a repayment scheme.

Tommy Sheridan attacked the bill

But the Scottish Socialist MSP Tommy Sheridan says the proposals would bring in warrant sales by another name.

He proposed an amendment to ensure that people on benefits could not be forced to sell their goods to repay their debts.

However, MSPs voted against the Scottish Socialist leader after a heated debate.

Mr Sheridan successfully sponsored a bill two years ago to abolish poindings and warrant sales.

Although his bill was passed, MSPs agreed to delay its implementation until 2002 so that alternative means of debt recovery could be devised.

Repayment scheme

This was due to become law in January but the Scottish Executive's new bill - passed on Wednesday - effectively makes it redundant.

Justice Minister Jim Wallace put forward the executive's bill and won the support of MSPs in September.

The proposals include a repayment scheme without enforcement, incentives for negotiated settlements and the provision of money advice.

However, the bill includes Exceptional Attachment Orders (EAOs), which do allow for the seizure and sale of a debtor's property in certain circumstances.

To argue that this Bill will not protect the most vulnerable is as misleading as it is unfair

Jim Wallace Justice Minister

Mr Sheridan said that was unacceptable and claimed the bill would in effect bring back warrant sales before his own bill becomes law.

Prior to the debate he had urged Labour MSPs to "stage a second rebellion" and vote against the executive's plans.

In the chamber he said Labour MSPs should be "ashamed" to support the bill.

"The truth of the matter is you are re-introducing a form of warrant sale," he said.

"You are allowing sheriff officers to enter a debtor's home forcibly and remove their goods. That is warrant sales by another name."

However, Mr Wallace said claims that the new legislation would target the poorest in society were "misleading" and "unfair".

'Out of touch'

Labour MSP Karen Whitefield said: "Ordinary people in Scotland understand that individuals should take responsibility for their debts.

"If Mr Sheridan and others think that is not the case they are sadly out of touch with the people of Scotland."

Scottish National Party social justice spokesman Kenny Gibson sought backing for an amendment which would force the Scottish Executive to conduct a review in 12 months' time to establish how often EAOs were used.

However, his amendment was defeated by 82 votes to 31 with one abstention.