Debt solutions in Scotland

The names are different and so are the numbers, which is why pages written for England and Wales can mislead Scottish readers. Scotland’s debt law is mainly in the Bankruptcy (Scotland) Act 2016 and the Debt Arrangement and Attachment (Scotland) Act 2002, and its insolvency service is the Accountant in Bankruptcy (AiB).

Free, impartial money advice is available across Scotland, including through MoneyHelper, StepChange, Citizens Advice Scotland and National Debtline. See where to get free debt advice.

How the Scottish options compare with England and Wales

The 6-month moratorium on diligence

A moratorium gives you 6 months of protection from creditors taking enforcement action (called diligence in Scotland), starting from when it is entered in the register. You can use it once every 12 months. It was extended from 6 weeks to 6 months in October 2022. It gives you time to get advice and choose a solution, but it does not deal with the debts on its own.

A separate mental health moratorium has been legislated for but is not yet in force as at September 2026.

Debt Arrangement Scheme (DAS)

DAS lets you repay your debts in full through a Debt Payment Programme (DPP), at a rate you can afford, over a reasonable period. It is like a debt management plan, but legally binding. Once your programme is approved, creditors cannot ask you for money, take you to court, apply to make you bankrupt, or add interest, fees or charges.

• There is no minimum debt.
• You can only apply through a DAS-approved money adviser, and they cannot charge you for setting it up.
• The running costs are paid by your creditors, not you: a 2% AiB fee and a 20% payments distributor fee come out of what you pay, so creditors receive 78% of the debt.
• If things go wrong, you can take a one-month crisis break, or a payment break of up to 6 months if your disposable income falls by 50% or more.

Protected Trust Deeds

A trust deed is a legally binding agreement to pay what you can afford to your creditors through a trustee (a licensed insolvency practitioner). It normally lasts 48 months, and if you keep to the terms, the rest of the included debts is written off when you are discharged.

• You must owe at least £5,000.
• The trustee notifies your creditors, who have 5 weeks to respond. The deed becomes protected unless a majority in number, or at least a third in value, of your creditors object. It only becomes protected once AiB registers it.
• Once protected, creditors cannot contact you directly, chase you for payment, add interest or charges, or take court action for the debts. An unprotected deed does not stop them.
• Trustees’ fees are not capped by law, and there are AiB fees too.
• Your home can be excluded if the secured lender agrees. Otherwise the trustee may seek your share of the equity.
• It affects your credit file for 6 years, and your discharge stays on the Register of Insolvencies for 12 months after the trustee’s discharge.

Recent changes help people entering a trust deed. Since 20 January 2025 the trustee must give you a trust deed information document and enough time to consider it before you sign. For deeds granted from 1 July 2024, creditors must receive a first payment within 12 months, and AiB can remove protected status for a material error within 3 months.

Sequestration (bankruptcy)

Sequestration is Scotland’s bankruptcy. You apply to AiB, and you must get advice from a money adviser before you apply.

• The fee is £150, and some people pay nothing, including people on certain benefits and people with no surplus income.
• For a standard application you must owe at least £3,000. A creditor can only make you bankrupt if you owe them £5,000 or more.
• You are usually discharged after one year, but any contributions from your income last for 48 months from the first payment, so they carry on after discharge.

Minimal Asset Process (MAP)

MAP is a simpler route into bankruptcy for people with low income and few assets, the closest thing Scotland has to a DRO.

• There is no fee.
• Your debts must be no more than £25,000 (student loans do not count towards this). There is no minimum.
• Your assets must be worth no more than £2,000, with no single item over £1,000 and no land or property. A vehicle worth up to £3,000 that you reasonably need is ignored.
• You must either have no surplus income to contribute, or have been receiving certain benefits for at least 6 months.
• You must not have had a MAP bankruptcy in the last 10 years.
• You are discharged after 6 months, and the entry stays on the register for 18 months.

Some websites still quote a £30,000 limit or a MAP fee. Neither applies in Scotland.

What might change

An independent review of Scotland’s statutory debt solutions published its final report, with 52 recommendations, on 12 March 2026. The Scottish Government’s response had not been published by September 2026, so the figures on this page could change. For a comparison of the English and Welsh options, see debt solutions compared.

What to do next

1. If creditors are taking action, ask a money adviser about a moratorium straight away.
2. Get free money advice. mygov.scot lists free debt advice services in Scotland, and money advice is compulsory before sequestration anyway.
3. Ask the adviser to compare DAS, a trust deed and sequestration or MAP with your real figures before you agree to anything.