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The Scottish moratorium on diligence

A moratorium gives you six months of legal protection from most debt enforcement in Scotland, so you have time to get advice. It does not deal with the debts themselves.

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A moratorium on diligence gives you 6 months of legal protection from most debt enforcement in Scotland. While it lasts, creditors cannot serve a charge for payment, start or carry out diligence, or use your debts to petition for your bankruptcy. It is not a debt solution: it does not write off debt or stop interest, but it gives you time to get advice and decide what to do.

What does a moratorium stop?

Diligence is the Scottish legal term for the steps a creditor can take to enforce a debt after court action, or after a summary warrant for council tax. It is usually carried out by sheriff officers, the court officers who enforce debts in Scotland (there are no bailiffs here). Our guide to sheriff officers and your rights explains what they can and cannot do.

While a moratorium is in place, it is not competent (not legally allowed) for a creditor to:

  • serve a charge for payment, the formal demand that usually comes before enforcement
  • start or carry out diligence, such as a bank arrestment, a new earnings arrestment or an exceptional attachment
  • petition for your sequestration (bankruptcy) based on a debt you owe them
  • release money already arrested in your bank account to the creditor

If money in your bank account was arrested before the moratorium started, it stays arrested, but it cannot be paid over to the creditor while the moratorium lasts. The moratorium period does not count towards the time limit for releasing arrested funds.

What a moratorium does not stop

The law makes some exceptions. A creditor can still:

  • carry on with an earnings arrestment, a current maintenance arrestment or a conjoined arrestment order that was already in effect before the moratorium began
  • auction items that have already been attached, where the right notice has been given
  • carry out certain court orders that were already granted

Interest and charges keep building. A moratorium does not freeze interest or charges and does not write off any debt. The debts are still there when it ends, so use the time to get advice.

If a creditor raises court action against you during the moratorium, you or your adviser must tell the court and the creditor that a moratorium is in place.

Who can apply for a moratorium?

According to mygov.scot, you must:

  • live in Scotland
  • have unsecured debts
  • not have had a moratorium in the last 12 months
  • not already be bankrupt
  • not already be in a trust deed or a Debt Arrangement Scheme

The moratorium is designed for people who intend to apply for a debt solution, such as a debt payment programme under DAS, a trust deed or sequestration. The 12-month rule has limited exceptions, for example where a joint DAS programme ended because a relationship broke down or a partner died.

Moratoriums are widely used in Scotland. AiB figures show 1,017 were granted between April and June 2026.

How do you apply?

  1. Get advice first if you can. mygov.scot recommends speaking to an approved money adviser. You can find one through our page on free debt advice in Scotland.
  2. Apply online. You, or your adviser for you, complete the debtor moratorium form on the Register of Insolvencies website. Paper forms are also available.
  3. Wait for AiB’s decision. The Accountant in Bankruptcy (AiB), the part of the Scottish Government that deals with insolvency, decides the application. If it is refused, you are told why in writing. There is no appeal against a refusal.
  4. Tell your creditors. If the moratorium is granted, AiB will not contact your creditors. It is up to you, or your adviser, to tell them.

A granted moratorium is entered on the Register of Insolvencies and the DAS Register, which anyone can search, and it stays there for the six months. StepChange says a moratorium itself is not recorded on your credit file, but creditors can still report missed payments.

Want to use the time to talk your options through? 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.

How long does it last, and what happens at the end?

The moratorium lasts 6 months from the date it is registered. If you apply for sequestration, a debt payment programme under DAS, or protection of a trust deed and that application is still being decided when the 6 months run out, the moratorium is extended until the application is decided or withdrawn.

When the moratorium ends, creditors can take enforcement action again, and any interest or charges added in the meantime will still be owed. That is why the six months work best as time to get advice and put a longer-term plan in place. The main options are:

  • the Debt Arrangement Scheme, which repays debts in full with interest and charges frozen
  • a protected trust deed, which has fees and risks, and can write off remaining included debts if it completes
  • sequestration, or the Minimal Asset Process for people with few assets and low income
  • an informal plan with your creditors

An adviser needs to look at your full situation before any of these is suggested.

Is there a mental health moratorium in Scotland?

Not yet. The Bankruptcy and Diligence (Scotland) Act 2024 includes provisions for a mental health moratorium, but those parts are not in force, and AiB has a working group on how it will operate. If your mental health is affecting how you cope with debt, our page on getting support if you are struggling lists services that can help now.

The MacDermid Review of Scotland’s debt solutions (final report 12 March 2026) also recommended a new, shorter moratorium, of no more than 60 to 90 days, for when an existing debt solution fails or is about to fail. That is a proposal only and is not law.

Scotland is different. Breathing Space, the Debt Respite Scheme you may read about on UK-wide sites, only covers people who live in England or Wales, and a standard Breathing Space lasts up to 60 days. Scotland has its own moratorium, which lasts six months.

Official sources

Common questions

Does a moratorium stop interest on my debts?

No. A moratorium stops most enforcement action, but creditors can still add interest and charges to what you owe. It does not write off any debt either. It is designed to give you breathing room to get advice and choose a debt solution, such as the Debt Arrangement Scheme, a trust deed or bankruptcy.

Will a moratorium stop an earnings arrestment?

It depends on timing. While the moratorium lasts, a creditor cannot start a new earnings arrestment. But an earnings arrestment, current maintenance arrestment or conjoined arrestment order that was already in effect before the moratorium began can carry on. A money adviser can look at other ways to deal with an existing arrestment.

Does AiB tell my creditors about the moratorium?

No. The Accountant in Bankruptcy registers the moratorium but does not contact your creditors or ask them to stop. It is your responsibility, or your adviser's, to tell each creditor. If a creditor raises court action during the six months, you or your adviser must tell the court and the creditor that a moratorium is in place.

Can I get Breathing Space in Scotland?

No. Breathing Space, also called the Debt Respite Scheme, only covers people who live in England or Wales. Scotland has its own protection instead, the moratorium on diligence, which lasts six months rather than the 60 days of a standard Breathing Space. A Scottish mental health moratorium has been legislated for but is not in force.

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