Scotland has its own statutory debt system, and the solutions people read about most often — debt relief orders and individual voluntary arrangements — do not exist there. The Scottish routes are protected trust deeds, the Debt Arrangement Scheme, sequestration and the Minimal Asset Process, each created under separate Scottish legislation and administered by the Accountant in Bankruptcy rather than the Insolvency Service. Anyone in Scotland following England-and-Wales guidance is reading about remedies they cannot apply for.
This page sets out the four Scottish routes, how each maps onto the English equivalent people have usually heard of, and how Scottish enforcement differs. Our list of free debt advice charities and helplines covers who does what across the UK. Free, regulated advice in Scotland is available from Citizens Advice Scotland, StepChange, National Debtline on 0808 808 4000 and local authority money advice teams. None of them charge.
Why the distinction is not a technicality
Debt law is devolved. Scotland’s insolvency and enforcement regime sits under separate statute, with its own eligibility rules, its own public register and its own terminology. The practical consequences are real: a Scottish reader who applies the English rules will use the wrong words with a creditor, look for a solution that has no Scottish equivalent, and misjudge what protection they have.
The confusion is made worse by advertising. Firms marketing debt solutions across the UK sometimes present Scottish products alongside English ones without making the boundary clear. If an advert offers you an IVA and you live in Scotland, that is a reason to stop and check who you are dealing with.
Protected trust deeds
A trust deed is a voluntary arrangement in which you transfer your estate to a trustee, who is an insolvency practitioner, and make contributions from income over an agreed period. Once it becomes protected — which requires that a sufficient proportion of creditors do not object — the remaining creditors are bound by it and cannot pursue the included debts separately.
It is the closest Scottish equivalent to an individual voluntary arrangement, and it carries the same two under-explained features. The trustee’s fees are paid from what you contribute, and a trust deed that fails part-way through can leave you exposed with much of what you paid absorbed. Ask what the fee structure is and what happens if your income falls, before signing.
Assets matter here. If you own a home with equity, the position needs to be worked through carefully in advance — this is one of the main reasons trust deeds are not suitable for everyone who is offered one.
The Debt Arrangement Scheme
The Debt Arrangement Scheme, usually called DAS, has no English equivalent at all. It is a statutory scheme that lets you repay debts in full over an extended period through a debt payment programme, while interest, fees and charges are frozen and enforcement is held off.
The important point is that DAS is not insolvency. There is no write-off, no trustee taking control of your estate, and no insolvency register entry of the kind a trust deed or sequestration produces. The debt reduction calculator is a quick way to see what a repayment period would look like. For someone with a steady income, assets worth protecting and debts that are large but repayable, it can achieve statutory protection without the consequences of an insolvency route. It is set up through an approved money adviser.
Sequestration
Sequestration is the Scottish form of bankruptcy. It is applied for through the Accountant in Bankruptcy, and a trustee is appointed to deal with the estate. As with bankruptcy in England and Wales, the consequences that matter most are asset-related and occupational: a home with equity, a vehicle of significant value, or a profession that restricts undischarged bankrupts.
Debts included are written off at discharge, subject to the exclusions that apply to any insolvency route. There may also be a contribution from income for a defined period where surplus income exists.
The Minimal Asset Process
The Minimal Asset Process, or MAP, is a streamlined form of sequestration for people with low income, few assets and debts within a statutory range. It is broadly the Scottish counterpart to a debt relief order: lower application cost, a shorter route, no contribution from income, and discharge after a set period.
The eligibility limits — the debt range, the value of assets you may hold, the vehicle value permitted — are set in law and have been changed before. Do not rely on a figure quoted in any article. Check current thresholds with the Accountant in Bankruptcy or an approved money adviser.
How the Scottish routes map onto the English ones
| Scottish route | Closest England and Wales equivalent | Insolvency? | Key difference |
|---|---|---|---|
| Protected trust deed | Individual voluntary arrangement | Yes | Protection depends on creditors not objecting, rather than on an approving vote |
| Debt Arrangement Scheme | No equivalent | No | Statutory protection and frozen interest while repaying in full |
| Sequestration | Bankruptcy | Yes | Administered by the Accountant in Bankruptcy |
| Minimal Asset Process | Debt relief order | Yes | Separate statutory limits and application route |
| Statutory moratorium | Breathing space | No | Protection from diligence while advice is taken |
Diligence: Scottish enforcement is its own system
Enforcement in Scotland is called diligence, and it is carried out by sheriff officers rather than by the enforcement agents used in England and Wales. The common forms include earnings arrestment, which takes a proportion of wages at source, and bank arrestment, which freezes funds in an account.
The document that most often precedes diligence is a charge for payment. It sets a deadline, and it should never be ignored — responding within the period is what preserves your options. If a charge for payment, a court document or a communication from a sheriff officer arrives, treat it as urgent and say so when you contact an adviser.
The statutory moratorium
Scotland’s equivalent of breathing space is a moratorium on diligence. It gives temporary protection from enforcement while advice is taken and a decision is made. Like breathing space, it is not a solution in itself — it is time, and it exists so that a creditor cannot force the pace of the decision.
Priority debts come first, in Scotland too
Whichever route eventually fits, the order of work is the same across the UK: rent or mortgage arrears, council tax, energy and court fines are dealt with before non-priority debts such as cards and loans, because the consequences of ignoring them are more serious. Our guides to the first seven days of acting on a debt problem and the signs that debt is becoming unmanageable apply in Scotland without amendment — it is the statutory solutions, not the practical groundwork, that differ.
Common questions
Can I get an IVA in Scotland?
No. An individual voluntary arrangement is a remedy under England and Wales legislation. The Scottish counterpart is a protected trust deed, and it is not identical — the protection mechanism and the statutory framework differ.
Is the Debt Arrangement Scheme recorded publicly?
DAS has its own statutory register, which is separate from the insolvency registers used for trust deeds and sequestration. Because DAS is not an insolvency solution, the consequences differ — this is one of the questions worth asking an approved money adviser about directly, as it can affect employment in some roles.
What if I moved between Scotland and England recently?
Which system applies depends on where you are habitually resident, and recent moves can complicate it. Do not assume. Raise it at the start of an advice appointment, because it determines which options exist at all.
Do Scottish debts become unenforceable after a time limit?
Scotland applies a five-year prescription period to most consumer debts, which is shorter than the six-year limitation period in England and Wales. The conditions that stop the clock differ too, so a debt that would still be enforceable south of the border may not be in Scotland, and vice versa. This is worth checking with an adviser rather than assuming either way.
Who regulates Scottish debt solutions?
The Accountant in Bankruptcy administers the statutory routes. Firms giving debt advice or arranging solutions still require FCA authorisation, so a firm approaching you can be checked on the FCA register regardless of which side of the border it operates from.
Next step
If you are in Scotland, work from Scottish sources: the Accountant in Bankruptcy for the statutory detail, and an approved money adviser to confirm which route your circumstances actually allow. If you are in England or Wales, our guide to debt solutions in England and Wales covers the routes that apply to you, and the compare debt options page sets them side by side.
Scottish eligibility thresholds, contribution rules and fees are set in law and are revised periodically. Nothing on this page is regulated debt advice, and no outcome described here is guaranteed. Confirm current rules with the Accountant in Bankruptcy or an approved money adviser before acting.