The three personal insolvency regimes in Scotland There are three personal insolvency/debt relief regimes in Scotland, sequestration, protected trust deeds (PTDs) and the Debt Arrangement Scheme (DAS). For a glossary of commonly used insolvency Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions. For further detail as to the principal features of each of these regimes, see Practice Notes: Scotland: the process for applying for sequestration, Scotland: protected trust deeds and Scotland: the Debt Arrangement Scheme. The Scottish government has undertaken a review of Scotland’s statutory debt solutions and formal debt recovery mechanisms, with the aim of modernising and improving the system. This review has included public consultation, stakeholder engagement, and policy development. The initial consultation ran from 12 August 2022 to 7 October 2022, and subsequent stages focused on analysing feedback, developing reform proposals, and implementing regulatory change. Comparison of the three personal insolvency regimes and suitability to personal circumstances For an individual domiciled in Scotland facing problems with debt and considering entering into a formal personal

The process for the removal of the charge depends on whether the charge entered is floating or fixed. Floating charges The floating charge regime in Scotland is similar to that in England and the same provisions of the Insolvency Act 1986 (IA 1986) apply in Scotland as they do in England. Administration in Scotland is governed by the IA 1986, Sch B1. Pursuant to the IA 1986, Sch B1, para 70, the administrator of a company may dispose of or act relating to a property which is subject to

In Scotland, a company’s inability to pay its debts can be established by its non-compliance with a ‘statutory demand’ served on behalf of a creditor owed over £750 within 21 days of service (section 123(1) of the Insolvency Act 1986 (IA 1986)). As such, it is important to understand the requirements of service. IA 1986, Pt IV deals with the winding

There are two primary circumstances in which a company can enter creditors’ voluntary liquidation (CVL). The first is under paragraph 83 of Schedule B1 to the Insolvency Act 1986 (IA 1986), where the company has been in administration. The second is under IA 1986, Pt IV, Ch IV (IA 1986, s 73) where the company enters CVL by way of member and creditor resolutions (a third option is where the company is in members’ voluntary liquidation but is in fact insolvent—see IA 1986, ss 95–96). Where the company is in administration and the administrator thinks that each secured creditor will received payment in respect of their debt and a distribution will be made to unsecured creditors, the administrator may send a notice to the registrar of companies (with a copy being lodged at the court and sent to creditors). The registrar

General overview of the changes The Moveable Transactions (Scotland) Act 2023 (the Act) came into force on 1 April 2025, together with the following associated regulations: (i) the Moveable Transactions (Register of Assignations and Register of Statutory Pledges Rules) (Scotland) Regulations 2024, SSI 2024/381, which establish rules for the Register of Assignations and the Register of Statutory Pledges under the Act, (ii) the Moveable Transactions (Forms) (Scotland) Regulations 2024, SSI 2024/379, which prescribe the form a pledge enforcement notice and form of correction demand under the Act, (iii) The Moveable Transactions (Scotland) Act 2023 (Financial Collateral Arrangements and Financial Instruments) (Consequential Provisions and Modifications) Order 2025, SSI 2025/275, which brings financial collateral arrangements and financial instruments within the scope of the reforms and (iv) the Registers of Scotland (Fees and Plain Copies) Miscellaneous Amendments Order 2025, SSI 2025/103. In Scots law, property is divided into heritable property (land, buildings and rights over land) and moveable property (everything else). Moveable property can be corporeal or incorporeal. Corporeal property is in essence tangible and

This Practice Note includes a link to the full text of key legislation that is particularly relevant to Scotland and referenced in within the practical guidance accessible in the Scotland collection. Scotland Act 1998 Click here for the full text: Scotland Act 1998 (SA 1998). Scotland Act 2012 Click here for the full text: Scotland Act 2012 (SA 2012). Scotland Act 2016 Click here for the full text: Scotland Act 2016 (SA 2016). Scottish Elections (Representation and Reform) Act 2025 Click here for the full text: Scottish Elections (Representation and Reform) Act 2025 (SE(RR)A 2025). Human Rights Act 1998 Click here for the full text: Human Rights Act 1998 (HRA 1998). Courts Reform (Scotland) Act 2014 Click here for the full text:

The Scottish Parliament has approved protections for people who are in debt and experiencing mental health problems. The Bankruptcy and Diligence (Scotland) Bill includes the power to bring in a pause on debt recovery action until six months after the person has finished treatment.

The Scottish Government has announced that new powers have come into force allowing a court to prevent those convicted of murder or culpable homicide from acting as an executor on their victim’s estate. The measures are part of the Trusts and Succession (Scotland) Act 2024.

The following Scottish research resources, providing useful practical commentary, legislation, cases, rules and guidance for Scottish practitioners, whether in private practice or in-house, are available in Lexis+® UK. Please note, however, the titles listed can only be accessed with the relevant Lexis+® UK subscription(s). Title Summary Who should use this resource? Stair Memorial Encyclopaedia The only comprehensive and authoritative narrative treatment of the law of Scotland—an essential resource for Scottish legal professionals. With over 140 titles spanning the full spectrum of Scots law, from Administrative Law to Trusts and Succession, it offers in-depth coverage across civil, criminal, public and private law.Authored by leading experts and frequently cited in court, Stair combines scholarly insight with practical relevance. Its currency is maintained through a structured title reissue programme and a looseleaf updating service,

The Debt Arrangement Scheme (DAS) is a statutory scheme that is designed to allow certain categories of debtor to repay their debts over an extended period of time by means of a debt payment programme (DPP). During the period a DPP is in force, a debtor is protected from enforcement action being taken against them by creditors. For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions. The statutory basis of the DAS is found in Part 1 of the Debt Arrangement and Attachment (Scotland) Act 2002 (DAA(S)A 2002). However, this merely provides the framework within which the scheme is to operate. The actual detail is to be found in secondary legislation promulgated under DAA(S)A 2002. Principally, this is the Debt Arrangement Scheme (Scotland) Regulations 2011 (DAS(S)R 2011), SSI 2011/141 as amended by the Debt Arrangement Scheme (Scotland) Amendment Regulations 2014 (DAS(S)AR 2014), SSI 2014/294. (Further amendments were made by the Debt Arrangement Scheme (Scotland) Regulations

STOP PRESS: On 8 October 2026, the The draft Bankruptcy and Attachment (Miscellaneous Amendment) (Scotland) Regulations 2026 were laid. The draft regulations amend the Bankruptcy (Scotland) Act 2016 (Ba(S)A 2016), the Debt Arrangement and Attachment (Scotland) Act 2002 (DAA(S)A 2002) and the Bankruptcy (Scotland) Regulations 2016 (the 2016 Regulations), SSI 2016/397 to: • allow more individuals in debt to qualify for and enter the Minimal Asset Process (MAP) bankruptcy and to enable individuals in debt to retain a greater value of specific possessions in bankruptcy and diligence • clearly substantiate the Accountant in Bankruptcy’s (AiB) position in maintaining the common financial statement (CFS) • update prescribed forms in the 2016 Regulations to reflect changes to the MAP entry criteria and to amend the default method of communication between AiB and the individual during the bankruptcy to email Commencement date: in part on the day after these regulations are made, and in full on 1 April 2027 (see: LNB News 08/10/2026 9). Sequestration

In England, courts having jurisdiction are permitted under the Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 12.59 to review, rescind or vary the winding–up orders which they make. The Scottish insolvency rules (the Insolvency (Scotland) (Receivership and Winding Up) Rules 2018, SSI 2018/347) do not contain an equivalent provision. A practical solution can be found in section 147 of the Insolvency Act 1986 (IA 1986), which provides the court with a discretionary power to sist winding–up proceedings on the application of the liquidator, creditor or contributory of the company.