Moratorium on diligence

Time to assess the options

The moratorium can provide time to consider bankruptcy, a protected trust deed or DAS with a money adviser. Eligibility depends on the Scottish rules, including residence, current debt arrangements and previous moratoria.

The protection lasts six months under the current official guidance. This is time for a realistic assessment and a next step, not a promise that the underlying debts will be resolved before the period ends. Existing court papers or urgent housing issues still need specific attention.

Applying and checking the result

An individual can apply, or an adviser can do so on their behalf, through the relevant registration process. Accountant in Bankruptcy considers the application. Submission alone should not be treated as evidence that protection has been accepted.

If accepted, the entry is recorded on the appropriate public register. AiB’s current guidance makes clear that the individual is responsible for telling creditors about an approved moratorium; AiB does not undertake that notification for them. Keep the acceptance evidence and register details.

What it protects—and what it leaves outstanding

The moratorium restricts specified diligence and creditor bankruptcy action under the legislation. The precise scope matters: it should not be described as stopping every type of legal process or affecting every right over property.

It does not write off debt and does not itself freeze interest or charges. Ongoing bills remain payable and debts can continue to grow. A creditor with an existing measure, a secured claim or a disputed procedural position should consult the operative rules rather than rely on a general summary.

Before the protection ends

Use the period to collect balances, evidence assets and ownership, assess income and essential spending, and decide whether a sustainable statutory or voluntary solution can be put in place. The individual’s circumstances may change during the assessment.

Creditors may regain the ability to pursue the relevant action when protection ends unless another process intervenes. Proposed mental health moratorium reforms or other future changes must be checked for actual commencement before being treated as a current right.

The process, at a glance

1. Check eligibility. Review the Scottish conditions and possible longer-term debt solutions.Process stage — practical timing varies
2. Submit the application. The individual or adviser applies and AiB considers the information.Process stage — practical timing varies
3. Confirm acceptance. Check the register entry and tell affected creditors about the approved moratorium.Process stage — practical timing varies
4. Develop a debt solution. Assess bankruptcy, a protected trust deed, DAS or another sustainable approach.Process stage — practical timing varies
5. Ordinary period ends. Debts remain; another legal process may provide different protection.Statutory milestone — check its trigger and exceptions