Accountant in Bankruptcy Expand The Accountant in Bankruptcy (AiB) is a government agency and is responsible for administering and overseeing all bankruptcies and insolvencies in Scotland.
Arrestment Expand Arrestment is when a creditor stops you taking money from your bank accounts by freezing them. This can only happen if the creditor has been through the correct legal process and there are strict rules in place about how this is done.
Arrestment (earnings) Expand Earnings arrestment is used to make a deduction from your earnings for enforcement of a debt.
Assets Expand Your assets are things that you own such as your home, car, and money tied up in things like investments or equity in your home. In some circumstances it can help to clear your debt by selling assets, and some debt solutions may require that you do this. However, this will be assessed on an individual basis and your money adviser will be able to provide more information.
Bankruptcy Expand Bankruptcy in Scotland is known as sequestration. This is a form of insolvency which is generally only used as a last resort when someone is unable to pay their debts. A person can enter into sequestration voluntarily or because a creditor has initiated the process. A creditor(s) has to be owed a least £3,000 before they can sequestrate someone.
Charge for payment Expand A charge for payment of money (or charge to pay) is the final notice from a creditor and gives you 14 days to pay before they will take legal action. If you have received one of these you should get debt advice as soon as possible (if you don’t know where to go, our webchat advisers will direct you)
Council tax Expand Council tax is a tax on domestic property and is collected by local authorities. Some people are exempt from council tax or can get a discount. To find out if you qualify for an exemption or discount, use our online calculator. Council tax debt is one of the most common types of debt.
Debt and information package Expand If a creditor is taking action or about to take action, you will receive a debt advice and information package. This will normally come with notification of what action the creditor intends to take. The pack will explain the different ways a creditor can take action and will provide you with information on where to go for debt advice. Our webchat advisers can direct you to debt advice.
Debt Arrangement Scheme (DAS) Expand DAS is a statutory debt management plan and it is important to note that it is not insolvency. Someone in a DAS will repay their debts over an extended period of time. Through DAS, all interest, fees, and charges are frozen and you are protected from creditors taking any legal action over your debt. Your money adviser will be able to determine if DAS is the right option for you.
Financial Ombudsman Service Expand The Financial Ombudsman Service deals with complaints from consumers on a range of issues including banking, insurance, mortgages, financial advice, and debt collection and repayment. For more information visit The Financial Ombudsman Service's website.
Minimal asset process (MAP) bankruptcy Expand A MAP bankruptcy is a type of bankruptcy designed for people with low income and little to no assets. To qualify for a MAP, you must not own property and have either been receiving benefits for six months, or have no disposable income. You can only apply for a MAP through an approved money adviser and you can’t have debts of more than £17,000.
Money adviser Expand A money adviser is a professional who helps individuals put a plan in place to manage/repay their debt. They will help you determine the best debt relief option for you by reviewing your financial situation, assessing your suitability for each and explaining the benefits and drawbacks allowing you to make an informed decision. Your money adviser will be your point of contact when you enter into a debt solution.
Mortgage repossession Expand Your mortgage lender may take court action to repossess your home if you have not been able to pay your mortgage. If this happens, you should get help from an adviser as you may be able to come to an agreement with your lender.
Protected trust deed Expand In a Protected Trust Deed you normally make reduced payments over four years, after which any remaining debt is usually written off. A trust deed can become protected if the majority of creditors agree to its terms. This means that creditors can’t take action to recover the money you owe or to make you bankrupt. Your assets and financial affairs will be looked after by a trustee for the duration of the protected trust deed.
Sheriff officer Expand A Sheriff Officer is an officer of the court whose job is to enforce court orders that relate to debt.
Support for mortgage interest Expand If you receive certain benefits and are a homeowner, you might be able to get a loan from the government to help pay the interest on your mortgage. This is called Support for Mortgage Interest. For more information, visit the UK government's website.
Trustee Expand A trustee is a licensed insolvency practitioner (IP) who oversees your finances while you are in an insolvency solution. Depending on your circumstances, the trustee could be from the Accountant in Bankruptcy or from a private insolvency company.