Notes for Guidance - Money adviser - 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.

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).

Moratorium application

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

If the client is making the application and does not have access to the register, a copy of the form can be obtained by contacting the Bankruptcy Applications and Decisions team or calling 0300 200 2850.

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this time, the moratorium period will be extended until the outcome of the application has been determined or it is withdrawn.

Further information is available on the moratorium page.

During the moratorium period all creditors are unable to enforce payment of any debt. They 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 any court action is raised against the client during the six month period, you or the client must inform the court and the creditor raising the action that a moratorium is in place.

Once the creditor knows they should stop the action. However, it may be necessary for you or the client to appear in court to defend the action.

However, creditors will be able to:

• auction an article which has been attached in accordance with the Debt Arrangement and Attachment (Scotland) Act 2002 (The Act) where: notice has been given to the client under section 27(4) of that Act, or the article has been removed, or notice of removal has been given, under section 53 of that Act
• implement a decree of forthcoming
• implement a decree or order for sale of a ship (or a share of it) or cargo
• execute an earnings arrestment, a current maintenance arrestment or a conjoined arrestment order which came into effect before the day on which the moratorium period began

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. 

The moratorium entry on the DAS register and Register of Insolvencies will be removed or amended on the date of the earliest of the following events:

• six months from the date entered on the register have elapsed and an application has not been received
• the date a notice is entered on the DAS Register that an application for a DPP has been received and is yet to be approved – provided the application is made before the six month moratorium period has ended

Full information on how to make a moratorium application is available on mygov.scot.