Step by Step Guide - Diligence / Enforcement Scotland
Click on a heading below to go to the appropriate pageMoratorium
Should an individual be considering bankruptcy/sequestration or a trust deed they may apply for a moratorium, during which period a creditor may not pursue recovery of the debt even if they hold a judgement/decree.
Charge for Payment of Money
Not to be confused with an English Charge. This is served by Court Officers, together with a Debt Advice and Information Package, giving the debtor(s) 14 days notice to pay and is required before diligence can be done. On expiry and non-payment, the debtor can be considered apparently insolvent.
Inhibition
Inhibition is a form of preventative diligence, rather than an active one and can be undertaken on the dependence of a court action or post Charge. It inhibits the debtor of heritable property from granting further security or the voluntary sale of any heritable property in Scotland.
Earnings Arrestment
Subject to sufficient income, a creditor may serve an arrestment on the debtor's employer compelling them to deduct monies from the debtors earnings each pay day to settle the sums due.
Arrestments (Bank / 3rd party)
Arrestment is effective over assets held by third parties which can include; Funds in the company bank account, moveable assets (including livestock), assets in the hands of repairs, such as vehicles at a garage, investment documents and debtor balances
Attachment including Interim, Exceptional, Monies and Land Attachments
Attachment which can be taken against moveable goods (including money) under the debtors ownership and possession.
Adjudication for Debt
Adjudication for debt is rarely used as a method of diligence. The effect of this method is that a creditor will obtain a right in security over heritable property owned by the debtor.
Landlord's Hypothec
The landlord’s hypothec is a right in security of a landlord over a tenant’s moveable property within the let premises. The hypothec exists in respect of unpaid rent and will subsist for as long as the rent remains unpaid.
The content of this website is for general information only and should not be relied upon. It is not intended to be construed as legal advice and should not be treated as a substitute for specific advice.