Scotland has a completely separate legal framework for dealing with debt. If you live in Scotland, you are not eligible for English and Welsh solutions like IVAs or Debt Relief Orders — but Scotland has its own equivalents, some of which are more generous.
For the general UK debt solutions hub (which covers England and Wales), see the Debt Solutions hub.
Scotland vs England and Wales — Debt Solutions Compared
| Scottish solution | Closest equivalent in E&W | Key differences |
|---|---|---|
| Sequestration | Bankruptcy | Application via AiB; broadly similar effect |
| Protected Trust Deed | IVA | Usually 4 years (vs 5–6 for IVAs); needs majority creditor agreement by value |
| Debt Arrangement Scheme (DAS) | Debt Management Plan (DMP) | Statutory — legally binding on creditors; interest frozen; debts repaid in full |
| Minimal Asset Process (MAP) | Debt Relief Order (DRO) | Debt cap £25k (vs £30k for DRO); £50 fee (vs £90) |
Who Administers Scottish Debt Solutions?
The Accountant in Bankruptcy (AiB) is the Scottish Government agency responsible for administering insolvency proceedings in Scotland — including sequestration, Trust Deeds, DAS, and MAP.
Money Advisers (accredited debt advisers) are required for DAS applications and MAP certificates. Free Money Advice is available from Citizens Advice Scotland, StepChange Scotland, and the Money Advice Service.
Sequestration — Scottish Bankruptcy
Sequestration is the Scottish equivalent of bankruptcy in England and Wales. It writes off qualifying unsecured debts after the process is complete.
How it works:
- Apply to the Accountant in Bankruptcy online (£200 fee) — or via a creditor application
- AiB appoints a Trustee to manage your assets
- Any assets above an exempt threshold are realised to pay creditors
- Sequestration is usually discharged after 12 months
- An Income Payment Agreement (IPA) can continue for up to 3 years if you have surplus income
Exempt assets in Scotland:
- Tools and equipment necessary for your trade
- Clothing and basic household furniture
- A vehicle up to £3,000 value (if needed for work)
- Money from a pension (generally protected)
Impact: Sequestration appears on the Register of Insolvencies for 5 years and on your credit file for 6 years. Some professional and public roles restrict sequestees.
→ Bankruptcy Guide UK (for England and Wales comparison)
Protected Trust Deed
A Protected Trust Deed is the Scottish equivalent of an Individual Voluntary Arrangement (IVA). It is a formal agreement between you and your creditors, administered by a licensed Insolvency Practitioner (Trustee).
Eligibility:
- Minimum qualifying debt: £5,000
- Must be a Scottish resident
- Must be insolvent (unable to pay debts as they fall due)
How it works:
- You instruct an Insolvency Practitioner to prepare a Trust Deed
- The Trustee advertises the deed in the Edinburgh Gazette and Register of Insolvencies
- If creditors holding more than 50% of the debt by value do not object within 5 weeks, the deed becomes ‘protected’
- You make monthly contributions to the Trustee for typically 4 years
- At the end of the period, remaining debt is written off
Protected status matters: An unprotected Trust Deed can be challenged by individual creditors; a protected deed cannot.
→ Trust Deed Scotland — Complete Guide
Debt Arrangement Scheme (DAS)
DAS is a uniquely Scottish statutory debt repayment scheme. Unlike a Trust Deed or sequestration, it does not write off any debt — you repay everything — but it provides powerful legal protections while you do.
Key features:
- Interest and charges frozen from the date the DAS is approved
- Creditors cannot take enforcement action (diligence) during the scheme
- Flexible — payment breaks and extensions can be applied for
- Must be administered through an accredited Money Adviser
- No minimum or maximum debt level
Why DAS over a DMP? A DMP (Debt Management Plan) is informal — creditors can withdraw, resume interest, or take enforcement action. DAS is statutory — once approved, creditors are legally bound.
→ Debt Arrangement Scheme (DAS) Scotland — Full Guide
Minimal Asset Process (MAP)
MAP is a simplified, lower-cost route to sequestration for people with very limited assets and income.
Eligibility criteria:
| Criterion | Threshold |
|---|---|
| Total qualifying debt | £1,500–£25,000 |
| Total assets | Under £2,000 |
| No single asset worth more than | £1,000 |
| Certificate for Sequestration | Required (from a Money Adviser) |
| No recent insolvency | Not sequestrated or used MAP in last 10 years |
Application fee: £50 (significantly less than the £200 for standard sequestration)
MAP provides the same debt write-off as full sequestration but is faster and cheaper for qualifying individuals.
Getting Free Debt Help in Scotland
| Organisation | Contact | What they offer |
|---|---|---|
| Citizens Advice Scotland | cas.org.uk / 0800 028 1456 | Full debt advice, DAS Money Adviser |
| StepChange Scotland | stepchange.org / 0800 138 1111 | DAS applications, Trust Deed referrals |
| Money Advice Service | moneyhelper.org.uk | Free telephone advice |
| National Debtline Scotland | nationaldebtline.org / 0808 808 4000 | Scottish-specific debt advice |
Never pay for debt advice in Scotland. Insolvency Practitioners charge fees for Trust Deeds (paid from your monthly contribution), but initial debt advice should always be free.