What is a bank arrestment in Scotland?

Understanding bank arrestment orders for debt in Scotland

A bank arrestment is a legal process in Scotland where a creditor (a company you owe money to) can freeze your bank account in order to recover a debt you owe. It's a form of diligence, a legal process for recovering debt, and requires a court order or a registered document before it can be put in place. The bank account is frozen, and funds in the account which are above a certain protected threshold may be transferred to the creditor to settle the debt.

Why would I get a bank arrestment against me?

Having your bank account frozen via a bank arrestment typically follows a lengthy battle on behalf of your creditors to get you to pay a debt that you owe. Bank arrestments are a serious form of creditor action and require legal involvement by way of a court order and is therefore not something that would be done as soon as you fail to make the necessary payments towards your debts.

Instead, a bank arrestment is typically the result of an individual repeatedly failing to repay the money they owe despite many attempts by the creditor to recover the debt. Essentially, a bank arrestment is one of the risks you take when you bury your head in the sand and do not deal with your debts.

This second stage requires one of two things to happen:

1.      You give permission (via a signed mandate) for the arrested funds to be sent to your creditor

2.      14 weeks have passed and you have not lodged a successful objection to the arrestment

It may be possible to challenge a bank arrestment under certain circumstances. This includes if you can prove the bank arrestment will cause you and your family ‘undue hardship’, if you have been granted additional time to pay by the court, or if your creditor did not use the correct procedure when obtaining the bank arrestment order against you.

How can Scotland Debt Solutions help?

If you are struggling under the weight of mounting debt and you are worried your bank account may be frozen by way of a bank arrestment, you should make it a priority to seek expert debt advice.

The experts at Scotland Debt Solutions are here to give you the help and advice you need when it comes to dealing with your debts. Contact the team today for immediate support and guidance.