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.
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.
| IVA | DMP | DRO | Bankruptcy | |
|---|---|---|---|---|
| Formal insolvency | Yes | No | Yes | Yes |
| Where it applies | England, Wales and Northern Ireland | The whole of the UK | England and Wales (Northern Ireland has its own version with different thresholds) | England, Wales and Northern Ireland (Scotland calls it sequestration) |
| Typical duration | 60 months, or 72 with home equity | Until the debt is repaid — no fixed end | 12 months | Discharged in 12 months; payments up to 3 years |
| Monthly payments | Monthly, affordability-based | Monthly, flexible, changeable | No payments at all | Only if you have surplus income |
| Your home | Excluded; equity sets the term | Not affected | Not available to homeowners | May be sold |
| Credit file impact | 6 years from the start date | Defaults recorded, 6 years each | 6 years from the order date | 6 years from the order |
| Public register | Listed on the public Individual Insolvency Register, which anyone can search. Your address can be withheld only on evidenced safety grounds. | Nothing public. A DMP is a private arrangement. | Listed on the public Individual Insolvency Register. | Listed on the public Individual Insolvency Register, and in some cases advertised more widely. |
| Fees | Paid from your monthly payments | Free providers available | Free — no application fee | £680 application fee |
| Creditor protection | Legally binding on included creditors | None — entirely voluntary | Full protection, then write-off | Full protection, then discharge |
Not sure which of these applies to you?
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Related guides
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