The Civil Enforcement Association had previously reported that in England and Wales, bailiffs had until recently been harassing people over typical debts such as council tax debts, even while social distancing rules had come into existence.
As well as better protection against Sheriff Officers in Scotland, there is also now more relief from creditor enforcement action such as Wage Arrestment.
The new legislated changes are part of an amendment to the Statutory Moratorium in Scotland and allows you to apply for 6 months protection against creditor debt collection enforcement tactics, including the use of doorstep Sheriff Officers to collect debt.
What is a Statutory Moratorium?
The word Moratorium itself is derived from 19th-century Latin word ‘morat’ meaning ‘delayed’ and sounds quite intimidating on its own, but it is a benefit of people in Scotland worried about how the Coronavirus crisis may impact their finances, especially where enforcement action has been threatened against the individual.
A Statutory Moratorium is a temporary prohibition of an activity that it is free to apply for and does not require an application to be made to the courts in Scotland, even though it protects individuals from court-approved debt recovery practices, known as diligence in Scotland.
Once applied for, the Statutory Moratorium protects people from any further action being taken by Sheriff Officers and from applications being made to the courts to make people Sequestrated.
The Statutory Moratorium protects people in Scotland from:
- Charge for Payments
- Wage Arrestment
- Bank Account Arrestment
- Attachments of Property
If you are being threatened with any of these actions, or the process has already begun, contact Trust Deed Scotland immediately on 0141 221 0999 and we can advise on applying for Statutory Moratorium on your behalf.
Does the Statutory Moratorium Freeze Interest and Charges?
If we go back to the original Latin meaning of the phrase Moratorium; it means that enforcement action will be ‘delayed’. Your debt total may still increase during this time as your creditors may continue to apply interest to the outstanding amount.
The purpose of extending the Statutory Moratorium terms during the Coronavirus outbreak via the new legislative powers of the Coronavirus (Scotland) Act is to give you valuable breathing space during these uncertain times. As such, treat it as a stay of execution while you evaluate your options to pay back the debt to the best of your reasonable ability.
Help With Sheriff Officers & Enforcement Action In Scotland
If you’re struggling with unaffordable debts, due to a change in circumstances brought about directly as a result of the Coronavirus, or because you were already in financial difficulties before the crisis began, there is help available for you to repay those debts and look forward to a life after debt.
As Scotland’s No.1 Debt Advice Company, having helped 20,000 people since 2009; we have the experience required to help people in Scotland resolve their finances and get their monthly debt repayments down to an affordable level.
Thousands of people have left Trust Deed Scotland a five-star debt advice review on TrustPilot and throughout the Coronavirus crisis, our advisors have been continuing to offer the same level of support, by working from home.
Always 100% safe and confidential – our debt advisors have been working hard to explain the Pros and Cons of all solutions available to individuals in Scotland burdened with unaffordable debt concerns. We have spoken to while the Covid-19 crisis continues to unfold.
Debt Arrangement Scheme
The Debt Arrangement Scheme allows people in Scotland to repay all their debts, with one affordable payment each month.
Once approved, the Debt Arrangement Scheme ensures that all interest and charges are legally frozen and ensures that you are protected against all creditor activity – from debt collection agencies to Sheriff Officers. In conjunction with a Statutory Moratorium, the Debt Arrangement Scheme will protect you from enforcement action.
There are advantages, disadvantages and alternatives to the Debt Arrangement Scheme and you should give careful consideration to what is best for you, based on your own circumstances.
Protected Trust Deeds
Protected Trust Deeds use formal legislation that helps people reduce their overall debt payments to one fixed affordable monthly repayment.
In order to qualify for a Trust Deed, you would typically have over £5,000 of unsecured debts. This may be credit cards, personal loans, payday loans and bank overdraft debts but can also include the likes of catalogue debts and
Like the Debt Arrangement Scheme, in conjunction with a Statutory Moratorium, a Protected Trust Deed will protect you from enforcement action and Sheriff Officers.
A Trust Deed term lasts a typical period of 48 months. After the Trust Deed term has complete, any remaining debt is then written off as unaffordable, giving you the freedom to get on with building your life.
You should be aware that there are Trust Deed Pros and Cons, and there may be better solutions for you that allow you to deal with your debt and move forward with your life.
Trust Deed Scotland® always recommends speaking to a qualified debt expert who shall be able to gather all information, and use that to give you a personalised illustration of the solutions available to you, and how it may affect you in the long-term.
Where can you get reliable debt advice in Scotland?
Talking about our debts to people that we do not know isn’t easy.
Trust Deed Scotland® understands this more than most having helped over 20,000 people in Scotland since 2009. We will always offer a friendly, non-judgemental advice service that doesn’t involve you being pressurised into a debt management product that you don’t understand.
We’re very proud of our reviews we received where many people comment on the service that they have received and we will always have our clients best interests at heart.
Give us a call on 0141 221 0999 or get started online.