Check If You Qualify

What Scottish individuals need to know about diligence and debts

Sharon McDougall - Updated - 1st February 2024 - 5 minutes to read

Diligence is the technical term for enforcement and comes in many forms. Diligence can only be used following court action and is therefore the result of a lengthy recovery campaign on the part of the creditor.

Before any type of diligence can be actioned, creditors must have formally requested payment in writing; this is known as a ‘charge for payment’. This must state the amount you must pay and give you a deadline to make this payment, which is usually 14 days from the date of the letter. It is only once this request has been issued and the deadline has passed without payment that diligence can be carried out.

Diligence is a wide ranging term and covers a variety of various actions a creditor can take to recover the money they are owed. The seven main forms of diligence are as follows:

Debt Calculator

Get a rough indication of what your monthly repayments might be under each of our different debt solutions.

Bank arrestment

 This sort of action means your bank and/or building society accounts will be frozen until you agree, via a signed mandate, to either settle your debt, or make a payment towards part of the amount owed. Failure to sign the mandate may lead to the creditor issuing an action of ‘furthcoming’ which orders the bank to release the money in your account so your creditor can be paid. Any bank arrestment only affects the money in your account at the time of the arrestment being made, and a minimum of £494.01 must be left free.

  • Earnings arrestment – An earnings arrestment is when money is taken directly out of your wages in order to pay back the money you owe. Money will be taken out after your tax and national insurance contributions have been deducted. Your employer will find out about the earnings arrestment as they will need to deduct this money from your salary. You should be aware that in some cases, your employment may be affected if your employer discovers you are in debt.
  • Attachment of property – When an attachment is granted, this gives a sheriff officer the right to seize your personal goods. However, they are not able to enter your home, and instead can only claim property which is outside your main place of residence – this may include your shed or an outside garage. There are restrictions on what can be taken, with basic household goods, tools needed for work, or children’s toys exempt from being taken.

If any type of diligence has been issued against you, you need to take action as a matter of urgency. You may be able to negotiate a payment plan which, as long as you stick to it, will halt any further action being taken and will ease the restrictions imposed on you. In order to do this you will need to fill out a Time to Pay application form and send this directly to the court.

You may also be able to enter into a voluntary debt management scheme such as a Debt Arrangement Scheme (DAS). This will involve you making a monthly payment to your creditors and protect you from any form of diligence being used against you.

If you are struggling with debt and would like some advice about what to do next, contact the specialists at Scotland Debt Solutions. We help hundreds of Scots every year to get their finances back on track and look towards a future free from debt. Based across five offices across Scotland, we know exactly what options are available to indebted individuals in Scotland, some of which may not exist elsewhere in the UK. This specialist knowledge means we can provide you with the very best help and advice regardless of your situation. Call us today on 0800 063 9250 to find out more.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...

About

Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser

Headset

We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

OUR SERVICES

We can help you with...

Sequestration

Sequestration

Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners