Debt Recovery Enforcement in Scotland – Payment Orders

Recovering Money After a Scottish Court Decree

If you have successfully raised court proceedings and obtained a decree in Scotland, the next step is recovering the money owed to you. Our debt recovery solicitors can advise you on the most effective enforcement action available and help you recover payment as quickly as possible.

Call us on 0141 221 1919 or complete our online contact form to discuss enforcing a Scottish court decree.

Enforcing a Court Decree in Scotland

After a successful court action, the court will issue a decree confirming that the debtor must pay the outstanding sum. In many cases, the decree will include:

• The principal debt
• Interest
• Judicial expenses

Judicial expenses often recover a significant proportion of your legal costs, commonly around 70% to 80%.

Obtaining decree is only part of the process. If the debtor does not make payment voluntarily, enforcement action may be required.

What Is Diligence?

In Scotland, enforcement procedures are known as “diligence”. Diligence refers to the legal methods used to enforce a court order and recover unpaid debts.

The first stage of enforcement is usually serving a Charge for Payment.

Charge for Payment

A Charge for Payment is a formal demand served by Sheriff Officers. It gives the debtor 14 days to pay the amount due in full.

If payment is not made within that period, further enforcement action can begin.

Types of Enforcement Action in Scotland

Several forms of diligence may be available depending on the debtor’s financial circumstances and available assets.

Earnings Arrestment

An earnings arrestment is served on the debtor’s employer. It allows deductions to be made directly from the debtor’s wages and paid to the creditor.

This method does not apply to self-employed individuals.

The amount deducted is set by legislation and depends on the debtor’s income level. While effective in some cases, this can be a slow method of recovering larger debts.

Bank Arrestment

A bank arrestment freezes funds held in a debtor’s bank account at the time the arrestment is served.

Arrestments take effect immediately. Funds will only be captured if money is available in the account at the exact time of service.

This is one of the most common enforcement methods used in Scotland.

Arrestment of Funds Held by a Third Party

If a third party is due to pay money to the debtor, it may be possible to arrest those funds before payment is made.

For example, funds connected to a property transaction may be arrested before settlement takes place.

Attachment Orders

An Attachment Order allows Sheriff Officers to seize certain assets owned by the debtor, including:

• Vehicles
• Equipment
• Stock
• Valuable business assets

Items kept outside a dwelling house may be attached and removed for sale at public auction.

Certain household goods are exempt from attachment under Scottish law.

Exceptional Attachment Orders

In limited circumstances, the court may grant an Exceptional Attachment Order allowing items within a home to be attached.

The court does not grant these orders lightly and the process can be expensive. Legal advice should be obtained before proceeding.

Sequestration and Winding-Up Proceedings

Once the 14-day Charge for Payment period has expired, creditors may consider formal insolvency proceedings.

This may involve:

• Sequestration of an individual
• Winding-up proceedings against a company

These procedures can place significant pressure on a debtor. They can also lead to assets being realised for the benefit of creditors.

Before starting insolvency proceedings, it is sensible to investigate whether the debtor has recoverable assets. Secured creditors rank ahead of unsecured creditors when funds are distributed.

Insolvency proceedings can take considerable time and may continue for several years.

Enforcing English CCJs and Non-Scottish Judgments in Scotland

We can assist with the enforcement of:

• County Court Judgments (CCJs)
• English court orders
• Non-Scottish judgments

We can advise you on registering these judgments in Scotland and taking enforcement action against debtors located north of the border.

Why Choose Our Debt Recovery Solicitors?

We advise businesses, landlords, insolvency practitioners and private individuals on debt recovery and enforcement throughout Scotland.

Our solicitors can assist with:

• Serving Charges for Payment
• Bank arrestments
• Earnings arrestments
• Attachment Orders
• Sequestration proceedings
• Enforcement of CCJs in Scotland

We will advise you on the most cost-effective enforcement strategy based on the debtor’s circumstances. Learn more about our debt recovery services and wider litigation and dispute resolution work.

Frequently Asked Questions