Skip over main navigation
  • Log in
  • Basket: (0 items)
  • Events
Money Advice Scotland
Become a member
Menu
  • About us
    • What we do
    • Our plan
    • Our impact
    • Meet the team
      • Our people
      • Our board and ambassadors
    • Work with us
  • Get help
    • Help for people with money worries
    • Resources and tools
    • Help with energy costs
  • Support for professionals
    • Adviser wellbeing
    • Training
      • MATRICS learn
      • Wellbeing training
      • Bespoke training
      • Online Train the Trainer
    • Services and support
      • MATRICS consultancy
      • Mentorship
    • Resources
      • Adviser glossary
    • Webinars
    • Open banking webinars
    • Share a client experience
    • Real-time I&E
  • Financial capability
    • About Financial Capability
    • For educators
    • For employers
      • Money Works
    • For professionals
    • E-learning module
    • MAS Online Bank
    • Webinars
    • Money Guidance: A User-centred Approach
  • Policy and research
    • About our policy work
    • Our research
    • Consultation responses
    • Evidence base
    • Coronavirus policy updates
    • Become a Supporter
  • Blogs, news and events
    • Blog
    • News
    • Events
      • Members-only Events
      • Events
  • Admin
    • Log in
    • Events
  • Basket: (0 items)
  1. Get help
  2. Debt terms explained

Debt terms explained

When you first meet with your money adviser and begin the debt advice process, you may hear or come across terms that you’re unfamiliar with. This guide aims to explain what some of these terms mean and we recommend you have a quick read over before your first appointment.

If you don't understand anything on this page, access our webchat and one of our advisers will be happy to help. 

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.

Published: 1st May, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 5th May, 2019

Updated: 29th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

Arrestment (earnings)

Expand

Earnings arrestment is used to make a deduction from your earnings for enforcement of a debt. 

Published: 7th May, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 9th May, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 12th May, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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)

Published: 15th May, 2019

Updated: 29th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 18th May, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 21st May, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 24th May, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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. 

Published: 28th May, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 1st June, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 4th June, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 8th June, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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.

Published: 11th June, 2019

Updated: 29th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

Sheriff officer

Expand

A Sheriff Officer is an officer of the court whose job is to enforce court orders that relate to debt.

Published: 14th June, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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. 

Published: 18th June, 2019

Updated: 25th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter

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. 

Published: 22nd June, 2019

Updated: 29th October, 2019

Author:

Share this page
  • Email
  • Facebook
  • Twitter
Back to top

Showing 10 of 17

Latest

  • Financial Wellbeing Webinar - Cost of Living Update - 26th July

    Join us for this financial wellbeing webinar where we will be looking at the ongoing impacts of the cost of living crisis as well as understanding the support available.

  • Important amendments made to Coronavirus (Recovery and Reform) (Scotland) Bill

    A summary of two amendments that were made during Stage 2

  • Wellbeing Index 2021-2022 Launch

    The 2021-22 Wellbeing Index paints a picture of wellbeing in the advice sector over the year between January 2021 and January 2022. This blog highlights the key findings from the index and shares insight into what is next for the project.

  • New Cost of Living Measures

    On the 26th May 2022, the UK Government announced measures aimed at helping people with the impact of the current cost of living crisis.

Most read

  • Regulated and Unregulated (Exempt) Credit Agreements

  • What we do

    Money Advice Scotland is Scotland’s money charity. We exist to help people in debt, support money advisers, and influence policy. Our mission is to be the driving force towards financial wellbeing for the people of Scotland.

  • Benefits calculator

    Our online benefits calculator will tell you quickly and confidentially if there are any benefits you should be receiving.

  • Help for people with money worries

  • E-learning module

    As well as delivering training and workshops, our financial capability team administers the financial capability e-learning module (ELM).

  • MATRICS learn

  • Money Guidance: A User-centred Approach

    Money Guidance: A User-centred Approach

    This new research is an opportunity to focus on the importance of a user-centred money guidance programme, which will aim to help people better manage their money, understand financial products, and build financial resilience, especially in light of the impact of the pandemic on personal finances.

  • Prescription of a debt

  • Our plan

  • Help with energy costs

Sign up for our newsletter

For details on marketing permissions, please see our terms and conditions.

Donate

Money Advice Scotland is Scotland's money charity. Our mission is to be the driving force towards financial wellbeing for the people of Scotland.

Please consider contributing and helping us make a difference

Donate now

Contact us

  • Facebook
  • Twitter

[email protected]

For debt and money worries 

Suite 410,
Pentagon Centre,
36 Washington Street,
Glasgow, G3 8AZ

  • Sitemap
  • Accessibility
  • Terms & Conditions
  • Privacy Policy

Money Advice Scotland is a registered charity, Registration Number: SC005663
A company limited by guarantee. Registered in Scotland No. 137717