Scottish debt solutions compared
Scotland has its own debt solutions under Scots law. This page sets them side by side and explains where to get free, impartial advice before you decide.
Debt solutions in Scotland are set by Scots law and work differently from those in England and Wales. The main formal options are the Debt Arrangement Scheme (DAS), a protected trust deed and sequestration (the legal term for bankruptcy in Scotland), which includes a simpler route called the Minimal Asset Process (MAP). A six-month moratorium and informal plans can also help, and free advice is available on all of them.
What are the options in Scotland?
- Debt Arrangement Scheme (DAS): you repay your debts in full through one payment, and interest, fees and charges are frozen.
- Protected trust deed: a formal agreement with your creditors, run by a trustee (a licensed insolvency practitioner). If it completes, the remaining debts included in it are written off. There are fees and risks.
- Sequestration: bankruptcy under Scots law, managed by a trustee. The trustee is usually the Accountant in Bankruptcy (AiB), the part of the Scottish Government that deals with insolvency.
- MAP: a route into bankruptcy for people with low income, few assets and debts of £25,000 or less.
- Moratorium: six months of legal protection from diligence (the Scottish term for debt enforcement, such as arresting your wages or bank account). It does not deal with the debts themselves.
- Debt management plan (DMP): an informal, non-binding plan to repay debts at an affordable rate.
Scotland is different. Individual voluntary arrangements (IVAs) and debt relief orders are not available here. You may see them advertised, but they are part of the system in England and Wales. Read more about IVAs and Scotland.
How do the options compare?
| Protected trust deed | DAS | Sequestration | MAP | Moratorium | Informal DMP | |
|---|---|---|---|---|---|---|
| Legally binding? | Yes, once protected | Yes, once approved | Yes | Yes | Legal protection only, not a solution | No |
| Minimum debt | £5,000 | None | £3,000 | None (maximum £25,000) | No set amount; you must have unsecured debts | None set by law |
| Typical length | 48 months, sometimes longer | Not fixed: debts repaid in a reasonable time | Usually discharged after 12 months; payments can run for 48 months | Usually discharged after 6 months | 6 months | Until the debts are repaid |
| Cost to you | Trustee and AiB fees, taken from your payments and assets | No charge to set up; running costs come out of your payments | £150 application fee, waived for some people | No fee | You can apply yourself or through a money adviser | Free from some providers; others charge fees |
| Debts written off? | Remaining included debts, if it completes and you are discharged | No, but frozen interest and charges are written off at the end | Most debts, on discharge | Most debts, on discharge | No | No |
| Your home | You may need to release equity | You do not have to sell it | The trustee can sell it if that is the only way to pay your debts | Not available if you own land or property | Not dealt with | Mortgage and rent are dealt with separately |
| Credit file | Affected for 6 years from the start | At least 6 years | At least 6 years | At least 6 years | Not recorded, but missed payments can be | May show; missed or reduced payments can be recorded |
| Public register | Register of Insolvencies, until 12 months after it ends | DAS Register | Register of Insolvencies, usually at least 5 years | Register of Insolvencies for 18 months | Register of Insolvencies and DAS Register for 6 months | No |
Figures checked against AiB, mygov.scot and the Bankruptcy (Scotland) Act 2016 on 10 September 2026. Changes to MAP have been proposed but are not law yet.
Why does your full situation matter?
Two people with the same total debt can have very different options, because it depends on:
- whether you could repay everything in full over a reasonable time
- your income, and whether it comes mainly from benefits
- whether you own your home, and how much equity is in it
- what kinds of debt you have, since some cannot be written off
- whether sheriff officers (the court officers who enforce debts in Scotland) are already involved
- priority debts such as council tax, rent and mortgage arrears, which usually need dealing with first
An adviser should look at all of this before any solution is suggested. A trust deed is one option among several, and it is not right for everyone.
Where can you get free advice?
Free, impartial debt advice is available to everyone in Scotland, from services such as MoneyHelper, Citizens Advice Scotland, StepChange and National Debtline, and they can look at every option. A DAS application has to be made through a DAS approved money adviser, and you must get money advice before applying for sequestration; free services can help with both. See the numbers and opening hours on our free debt advice page.
We are not a debt charity and we do not give debt advice. If you ask us to, we pass your details to a licensed insolvency practitioner firm, and they may pay us a fee. How our service works explains this in full.
What if creditors are already taking action?
If you have had a charge for payment, or a creditor is threatening to arrest your wages or bank account, a moratorium can stop new enforcement for six months while you get advice. It does not stop an earnings arrestment that is already in place, and it does not freeze interest. Our guides to debt enforcement in Scotland explain your rights with sheriff officers.
Official sources
Guides in Scottish debt solutions
- Free debt advice in Scotland Free, impartial debt advice services in Scotland, with phone numbers and opening hours.
- The Debt Arrangement Scheme (DAS) Repay your debts in full through one payment, with interest and charges frozen.
- Sequestration (bankruptcy in Scotland) How bankruptcy works in Scotland, who can apply, what it costs and what it means for you.
- The Minimal Asset Process (MAP) A no-fee route into bankruptcy for people with low income, few assets and debts up to £25,000.
- The Scottish moratorium on diligence Six months of legal protection from most debt enforcement while you get advice.
- Debt management plans in Scotland Informal repayment plans and token payments, and how they compare with DAS in Scotland.
- Debt consolidation in Scotland What a consolidation loan is, its risks, and how it compares with Scottish debt solutions.
- Trust deed or sequestration? A protected trust deed and bankruptcy in Scotland compared side by side.
- Trust deed or DAS? The Debt Arrangement Scheme and a protected trust deed compared side by side.
- Can you get an IVA in Scotland? Why IVAs do not apply in Scotland, and how the Scottish trust deed compares.
- Are debt relief orders available in Scotland? Why DROs do not apply in Scotland, and how the Minimal Asset Process compares.
- Can you write off debt in Scotland? Which Scottish solutions can end with debts written off, which repay in full, and what never goes.
Common questions
What is the best debt solution in Scotland?
There is no single best option. The right one depends on how much you owe, your income, whether you own a home, what kinds of debt you have and whether creditors are already taking action. A money adviser looks at all of this before suggesting anything. You can get that advice free from services such as MoneyHelper, Citizens Advice Scotland and StepChange.
Can I get an IVA or a debt relief order in Scotland?
No. Individual voluntary arrangements and debt relief orders are part of the system in England and Wales. Scotland has its own options under Scots law. A protected trust deed is often compared to an IVA, and the Minimal Asset Process is a no-fee route into bankruptcy for people with few assets and little income.
Do all Scottish debt solutions go on a public register?
The formal ones do. A protected trust deed, sequestration, the Minimal Asset Process and a moratorium are recorded on the Register of Insolvencies, and a Debt Arrangement Scheme programme goes on the DAS Register. An informal debt management plan is not recorded on a public register, although it can still show on your credit file.