Debt help in Scotland
The debt solutions that actually apply in Scotland, the free advice available locally, and how the law differs from the rest of the UK.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation. We would rather you got good advice somewhere than bad advice from anyone. The three statutory routes each have a full guide: the Debt Arrangement Scheme, the Protected Trust Deed and sequestration, including MAP. The DAS guide now covers homeowners, variations and applications in full. Two misconceptions answered head-on: can you get a DRO in Scotland? and can you get an IVA in Scotland? For low income and minimal assets, the Minimal Asset Process is the streamlined route in.
Debt solutions available in Scotland
- Protected Trust Deed
- Debt Arrangement Scheme
- Sequestration
- Minimal Asset Process
The Debt Arrangement Scheme has no English equivalent and is genuinely valuable: it freezes interest and charges by statute while you repay in full, with legal protection from enforcement and no effect on your home. Anyone in Scotland being marketed an IVA should stop and ask why, because it is not available to them.
Free debt advice in Scotland
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation. We would rather you got good advice somewhere than bad advice from anyone.
How this differs from the rest of the UK
Scotland has an entirely separate system, and this is the single most important thing to understand if you live there. IVAs and Debt Relief Orders do not exist in Scotland. The equivalents are Protected Trust Deeds, the Debt Arrangement Scheme, sequestration and the Minimal Asset Process, all administered by the Accountant in Bankruptcy rather than the Insolvency Service.
| Trust Deed | DAS | Bankruptcy | |
|---|---|---|---|
| Formal insolvency | Yes | Yes | Yes |
| Where it applies | Scotland only | Scotland only | England, Wales and Northern Ireland (Scotland calls it sequestration) |
| Typical duration | Normally 4 years | Until repaid in full | Discharged in 12 months; payments up to 3 years |
| Monthly payments | Monthly, affordability-based | Monthly, until cleared | Only if you have surplus income |
| Your home | Equity usually assessed | Not affected | May be sold |
| Credit file impact | 6 years | Recorded for the duration | 6 years from the order |
| Public register | Recorded on the public Register of Insolvencies, maintained by the Accountant in Bankruptcy. | Recorded on the DAS Register, which is public. | Listed on the public Individual Insolvency Register, and in some cases advertised more widely. |
| Fees | Paid from contributions | Free; interest frozen by law | £680 application fee |
| Creditor protection | Binding once protected | Statutory protection | Full protection, then discharge |
Scotland's own routes. Sequestration is the Scottish equivalent of bankruptcy, and the Minimal Asset Process is a lower-cost route within it for people with few assets and low income. IVAs and Debt Relief Orders do not exist here at all.
Not sure which of these applies to you?
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Related guides
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