Glossary of terms
If you are confused by some of the abbreviations used when referring to the debt solutions available in Scotland, you can use this glossary to help you understand what everything means.
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|AIB||This is the Government agency who oversee all insolvency procedures in Scotland, including Trust Deeds, Sequestration, MAP and DAS.|
|DAS||DAS stands for Debt Arrangement Scheme. It is a Government run scheme for residents of Scotland that allows you to pay back your debts in affordable payments over a longer period of time – without the worry of additional interest & charges, or potential legal action.|
|DAS Administrator||The adminstrators of DAS are the AIB (Accountant in Bankruptcy).|
|Debt solutions||These are any types of debt repayment programme that allows you to deal with your debts. They are intended for people who are struggling to repay their creditors.|
|DMP||DMP stands for Debt Management Plan. This is an informal debt solution that allows you to repay your unsecured creditors in full over an extended period.|
|DPP||DPP stands for Debt Payment Programme. It is the name of the debt repayment plan set up as part of the DAS proposal.|
|MAP||MAP stands for Minimal Asset Process – it is a route into Sequestration (bankruptcy) for those with little or no income.|
|Protected Trust Deed||A Protected Trust Deed is essentially a Trust Deed in which your creditors can’t add further interest & charges to your debts, and can’t take any further legal action against you.|
|Secured debt||This is any debt that has been secured against an asset. Most commonly, these types of debts are secured against your home (or any other property you own). But debts for items bought on Hire Purchase are also secured debts, because the debt is normally secured on the item itself. If you fail to repay your unsecured debts – the asset it is secured against could be taken back by your creditors. For example – mortgages are secured debts, and failure to keep up with repayments could lead to the repossession of the property.|
|Sequestration||Sequestration is the name for bankruptcy in Scotland. If you can’t afford to repay your debts, sequestration could be an option for you.|
|Trust Deed||A Trust Deed is a type of debt solution that’s only available for residents of Scotland – it involves writing-off a percentage of your debts.|
|Unsecured debt||Unsecured debt is any debt that isn’t secured against an asset. This includes credit card debt, bank loans and overdrafts – to name just a few examples.|