Personal Debt

The breathing space debt moratorium in Scotland enables people in debt to trigger a six-month period that’s free of creditor action, so they can take stock of their situation and formulate a plan.

The Covid crisis has caused debt problems for thousands of people in Scotland. One common debt concern is car repayments. Read our car finance advice here.

If a creditor is taking you to court in Scotland, the initial notification will be a writ or summons. This document should include details of your creditor, the amount owed, name of the court, and what the sheriff has been requested to do.

If you have lost your job and are unable to pay the bills, the first thing you should do is make a list of all your creditors. You will need to prioritise them, and then contact each one in turn.

Part of the debt enforcement procedure in Scotland involves the sending out of official enforcement notices to debtors. An enforcement notice can be sent by post, email or fax, or be delivered by hand by bailiffs.

When it comes to debt, there is not a one size fits all solution; what may be suitable for one individual may be completely inappropriate for someone else.

What happens when you default on a bank loan largely depends on whether the loan is secured or unsecured. Secured loans mean that you have provided security in the event of default, usually in the form of property or a vehicle.

If you’ve received a persistent debt letter from your credit card provider, you may be wondering what it means and how you should respond.

If you cannot pay your debts in full over an extended period of time, you may be able to legally write off some or all of them using the options below.

For sole traders, freelancers and self employed people, tax returns are a twice yearly fact of life that simply can’t be ignored. If you think you may have trouble paying your tax bill at the end of this month, you’re certainly not alone.

If you have built up debt from gambling, you may be able to write off part or all of the debt via a formal Scottish insolvency route.

MAP allows a path into sequestration, the term used in Scotland for bankruptcy, for people on low incomes and with few assets who may not otherwise be eligible for a formal debt relief solution.