Scottish Debt

The laws regarding debt for residents in Scotland are different than those for people living in England, Wales and Northern Ireland, and as such the Scottish government has created several of their own debt solutions specifically for those people currently living in Scotland.

Please note: For these purposes, a resident of Scotland is generally considered someone who has legally lived in Scotland for six months.

Protected Trust Deed

A protected trust deed is a solution between you and your creditors whereby you come to a formal arrangement to repay your debts over a set period of time in affordable, monthly installments. Usually lasting four years, any outstanding debt after this period is agreed to be written off by your creditors. During the period of your trust deed creditors must legally agree to stop charging you interest and charges, and also they must stop chasing you for payment.

Learn more about protected trust deeds

Debt Arrangement Scheme

A debt arrangement scheme is designed to give you the breathing space sometimes required when dealing with debt. Although you don’t get anything written off, if approved for a debt arrangement scheme your creditors have to freeze all interest and charges as you repay your debts in full, but over a longer period of time than originally agreed. Debt arrangement schemes also protect you from any legal action that your creditors may try to take over your debts.


Sequestration is simply the term sometimes used in Scottish law for bankruptcy, and probably the most well known form of debt solution. It is a solution used when other options have either failed or they are considered inappropriate. As you are no doubt well aware, the consequences of sequestration are harsh and shouldn’t be considered until you have fully investigated your other options. Under sequestration all of your assets, including property, will be investigated and sold where necessary.

Members of the Debt Assist UK team are trained in the details of Scottish debt solutions and can provide help and advice for residents of Scotland.

Please Note: Debt Assist UK only provide debt advice; we do not directly provide any financial solutions ourselves. We will talk you through your available options and if appropriate, we can offer you a no-obligation referral to a regulated debt solution provider, from whom we may receive a referral fee. Some debt solutions involve fees to you – these fees may differ based on the circumstances of your individual situation, but will always be explained to you by your chosen solution provider in writing before you decide to take up their service(s).