Moratoriums in Scotland

Written by Chelsea Potter on 6 September 2016

Are you worrying that creditors are going to take legal action against you before you have had the opportunity to seek professional debt advice?

In April 2015 we saw the introduction of moratoriums in Scotland. They replaced the previous DAS intimations and were put in place to help prevent legal action from creditors for 6 weeks. They are best used to allow breathing space while you decide which debt solution you want to take, and give time to gather all the information needed for your chosen option. Upon entering your choice of Sequestration, MAP, a Trust Deed or the Debt Arrangement Scheme they will take over the role in preventing any further legal action.

Moratoriums are recorded by the Accountant in Bankruptcy on the Register of Insolvency and DAS Register for creditors to see. However they do not necessarily mean you have to go enter a debt solution. If you have a change in circumstances during those 6 weeks which means you no longer required a formal debt solution then your name will simply fall off the registers at the end of those 6 weeks. You would need to be certain that your change in circumstances will allow you to take control of your finances as you would be unable to apply for a moratorium again for another 12 months.

If a moratorium is something that you think may help you while you decide which route to take speak to a qualified money advisor who will be able to assist you with the relevant form and where to send the form for registration.

Filed under Debt advice

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

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