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Bank arrestment in Scotland

If your bank account has suddenly been frozen, a creditor may have used a bank arrestment. You have some protection, and a short window to act before the money is released.

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A bank arrestment freezes money in your bank or building society account so that it can be paid to a creditor. The first £1,000 in your account is protected and cannot be taken. The bank releases the frozen money to the creditor 14 weeks after the arrestment is served, so the earlier you act, the more options you have.

Act within days, not weeks. You can only get a time to pay order that affects a bank arrestment if fewer than 8 of the 14 weeks have passed. Contact free debt advice straight away, and keep any letter from your bank about the arrestment.

How does a bank arrestment work?

A creditor can only arrest your bank account if they have a decree (a court order), a summary warrant or a document registered for execution. Some bodies have fast-track powers: Citizens Advice Scotland says, for example, that money may be taken from your account without a court process for child maintenance owed to the Child Maintenance Service or benefit overpayments owed to the DWP.

The usual steps are:

  1. A charge for payment is served on you, giving you 14 days to pay. For summary warrant debts, such as council tax, the charge must come first. For some court decrees, Citizens Advice Scotland says a charge might not be issued. See what a charge for payment is.
  2. Sheriff officers send a schedule of arrestment to your bank. The bank freezes the money in your account above the protected balance and tells you about the arrestment.
  3. The bank tells the creditor. Within 3 weeks, the bank must tell the creditor what it has frozen and send you a copy.
  4. The money is released. Unless something stops it, the bank pays the frozen money to the creditor 14 weeks after the schedule was served. It can be released earlier only if you agree.

How much money is protected?

The law protects a minimum balance of £1,000 in accounts held by individuals. If you have more than £1,000, only the amount above it can be frozen. If you have £1,000 or less, nothing is frozen.

  • Same bank: if you have several accounts with the same bank or building society, the £1,000 applies to all of them together.
  • Different banks: if your accounts are with different banks, the £1,000 applies to each one separately. Some banks with different names belong to the same banking group, and may be treated as one bank, so check who owns yours.
  • Business accounts: there is no protected balance for accounts held by a company, a limited liability partnership, a partnership or an unincorporated association, or for an account you run as a trading account.

What about joint accounts?

The bank will normally freeze the full amount in a joint account. Citizens Advice Scotland says the creditor is entitled to it all if only the person in debt paid money in, if the debt was taken on jointly, or if the account holders are a couple with equal liability for the debt.

If both of you paid money in but only one of you owes the debt, the creditor may only be entitled to part of the balance. You are likely to need legal advice to sort this out.

How can I challenge or stop a bank arrestment?

Apply for time to pay

If you have not had time to pay for the same debt before, you can apply to the sheriff for a time to pay order, as long as fewer than 8 weeks of the 14-week period have passed. mygov.scot says the application form has a section where you can ask the court to stop the arrestment. When the court grants time to pay, it can recall or restrict the arrestment.

Argue undue hardship or wrong procedure

Citizens Advice Scotland says you may be able to object if:

  • you and your family would suffer undue hardship, which may be easier to show if much of the money comes from benefits or if there are young children or elderly people in your household
  • a court has already allowed you time to pay
  • the creditor did not follow the correct procedure

Some money, such as child benefit, should not be frozen, but it can be hard to get the bank to separate it out. An experienced adviser can negotiate for you.

Frozen account and other debts too? Tell us a little about your situation and a licensed insolvency practitioner firm will call you to go through every option, including ones that are not a trust deed.

Start your enquiry

May not be suitable in all circumstances. Fees apply. Your credit rating may be affected. Free, impartial advice is available from MoneyHelper and other services.

A moratorium on diligence

During a moratorium, creditors cannot start new diligence, and money already frozen by a bank arrestment cannot be released to the creditor. The time the moratorium lasts does not count towards the 14 weeks. A moratorium lasts 6 months, does not freeze interest and is listed on the public Register of Insolvencies.

A debt solution

  • Debt Arrangement Scheme (DAS): while a DAS application is being considered, and once a debt payment programme is approved, frozen money cannot be released to the creditor under the 14-week rule. See the Debt Arrangement Scheme.
  • Sequestration (bankruptcy): an arrestment made in the 60 days before sequestration, or after it, gives that creditor no priority. The frozen money goes to the trustee for all creditors instead.
  • A trust deed or an informal plan may also be options. Ask an adviser how each would affect money that is already frozen.

Each option has costs and consequences. An adviser needs to look at your full situation before you choose one.

What should I do right now?

  • Find out who arrested the account and for what debt. The bank’s letter and the sheriff officers’ papers should say.
  • Note the date the arrestment was served. Count 8 weeks (the time to pay limit) and 14 weeks (the release date) from it.
  • Check the £1,000 protected balance has been applied, and whether any accounts are in the same banking group.
  • Get advice about undue hardship, especially if benefits were caught.
  • Protect your income from now on. Talk to an adviser about where your wages or benefits should be paid while this is sorted out.
  • Keep paying priority bills where you can, such as rent, mortgage and council tax.

Official sources

Common questions

How much money is protected from a bank arrestment in Scotland?

£1,000. The arrestment only freezes the balance above £1,000, and if you have less than that in the account, nothing is frozen. The protection applies once per bank or building society, so several accounts with the same bank share one £1,000. It does not apply to business or trading accounts.

Can a creditor freeze a joint bank account?

Yes. Citizens Advice Scotland says the bank will normally freeze the full amount in a joint account. But if the other account holder paid money in and does not owe the debt, you may be able to argue the creditor is only entitled to part of the balance. This can be complicated, so get advice quickly.

Can I still use my account after a bank arrestment?

You can still use the protected £1,000 and any money that was not frozen. The frozen balance is held by the bank and released to the creditor 14 weeks after the arrestment was served, unless the debt is paid or the arrestment is challenged or stopped. An adviser can help you plan how to manage your money in the meantime.

Does a bank arrestment catch benefits paid into my account?

It can. Benefits cannot be taken by an earnings arrestment, but once they are in your bank account they may be caught by a bank arrestment. Citizens Advice Scotland says some payments, such as child benefit, should not be frozen, although it can be hard to get the bank to separate them. You may also be able to argue undue hardship.

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