Notes for Guidance - Creditors - Debt Arrangement Scheme

Sections 195 to 198 of the Bankruptcy (Scotland) Act 2016 allow for a moratorium on diligence if the client intends to apply for, or has applied for a DPP, trust deed or sequestration. 

This provides protection from any creditor taking enforcement action (diligence) to recover a debt owed.

The client or the money adviser can submit the application for a moratorium. This should be done by creating the application on the Register of Insolvencies. 

AiB will enter all moratoria granted on the DAS Register and the Register of Insolvencies where they will remain for six months. 

If a DPP application, bankruptcy application or application for a trust deed to be protected is made during this time, the moratorium period will be extended until the outcome of the application has been determined or it is withdrawn.

During the moratorium period you are unable to enforce payment of any debt. You may not serve a charge for payment, commence or execute any diligence to enforce any debt owed by the client, or petition for sequestration. If you are informed a moratorium is in place, you should stop any action.

Only one moratorium is permitted in any 12 month period, except in cases where a client has previously been in a joint DPP which has been revoked due to a relationship breakdown or the death of one of the clients. In these circumstances, the client may apply for another moratorium within 12 months. 

To find out if a moratorium has been registered, you can search the DAS register or the Register of Insolvencies, free of charge. Each of these registers has a separate search function to find a moratorium. Please ensure you search the correct area of the register(s).