Scotland has its own unique set of debt solutions, separate from the rest of the UK. Here is a clear overview of every option available to Scottish residents.
A formal, legally-binding agreement where you make affordable monthly payments for 48 months and any remaining qualifying debt is written off. Available only in Scotland.
A government-backed scheme allowing you to repay your debts in full at an affordable rate. Interest and charges are frozen while you repay. No debt is written off.
Scottish bankruptcy administered by the Accountant in Bankruptcy. Assets may be seized, but you are discharged within 12 months and most debts are written off.
A simplified, lower-cost form of Scottish bankruptcy for those with minimal assets and income. You are discharged in just 6 months.
Direct negotiation with creditors to agree reduced payments, a settlement figure, or a payment break. No legal protection and no guaranteed outcome.
A court order allowing you to pay a court-decreed debt in instalments. Applied for through the court that issued the decree. Stops enforcement while payments are maintained.
Compare every Scottish debt solution at a glance. The highlighted row shows Protected Trust Deeds.
| Solution | Min Debt | Typical Duration | Debt Written Off? | Credit Impact | Full Guide |
|---|---|---|---|---|---|
| Protected Trust Deed | £5,000 | 48 months | Yes | Affected 6 years | Full guide -> |
| Debt Arrangement Scheme (DAS) | No minimum | Until full repayment | No | Affected during DAS | Full guide -> |
| Sequestration (Bankruptcy) | £3,000 | 12 months (discharge) | Yes | Affected 6 years | Full guide -> |
| Minimal Assets Process (MAP) | Under £17,000 | 6 months | Yes | Affected 6 years | Full guide -> |
| Informal Negotiation | No minimum | Negotiated | Sometimes | Varies by agreement | Full guide -> |
| Time to Pay Direction | No minimum | Agreed term | No | Varies | Full guide -> |
Important: This comparison is for general guidance only. The right solution depends heavily on your individual circumstances - income, assets, debt level, and personal priorities. We strongly recommend a free, no-obligation consultation with a licensed Insolvency Practitioner or a free debt advice service before making any decision.
A Protected Trust Deed is likely your best option. You make affordable payments for 48 months and remaining debt is written off. You get legal protection from creditors throughout.
A Debt Arrangement Scheme (DAS) freezes interest and lets you repay in full at an affordable rate, without a formal insolvency entry affecting your professional status.
Sequestration or the Minimal Assets Process (MAP) may be more suitable. MAP in particular offers a fast 6-month route for those on low incomes with debts under £17,000.
Informal negotiation with creditors is non-statutory and does not appear on the insolvency register. However, it carries no legal protection and creditors are not obliged to agree.
Before making any decisions about a Protected Trust Deed, you are entitled to free, impartial debt advice from government-backed services. These services are completely free and have no obligation to use any particular product.