Scotland—general personal insolvency

Copyright © 2025 LexisNexis
Produced in partnership with Stephanie Carr of Thorntons Law LLP
Practice notes

Scotland—general personal insolvency

Copyright © 2025 LexisNexis

Produced in partnership with Stephanie Carr of Thorntons Law LLP

Practice notes
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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 announced a commitment to a policy review of both formal debt recovery mechanisms—diligence—and the statutory debt solutions—moratorium protection, bankruptcy, Protected Trust Deeds and the Debt Arrangement Scheme—with the aim of 'further enhancing and improving our system'. The consultation runs from 12 August 2022 to 7 October 2022 (see: LNB News 12/08/2022 28).

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 insolvency or debt relief regime (as opposed to entering into

Stephanie Carr
Stephanie Carr

Solicitor / Partner, Thorntons Law LLP

Stephanie joined Thorntons Law LLP as a Partner in 2023. She has over 18 years' experience acting for a variety of clients in a wide range of contentious personal and corporate insolvency cases, as a result of which she has been accredited, and re-accredited, as a specialist in Insolvency Law by the Law Society of Scotland.

She is well known and respected in insolvency circles. She passed the Joint Insolvency Examination Board ("JIEB") exams in liquidation and personal insolvency and has a wide breadth of knowledge as a result of having attended the modules for the exams, where she also obtained a better understanding of the practical workings of the insolvency processes. 

She also regularly acts for clients in both secured and unsecured debt recovery matters and advises on a number of diligence measures open to them. Stephanie has advised and represented clients in a wide range of disputes in the Sheriff Court, the Court of Session and tribunals. She has been the principal adviser to clients including government bodies, companies of all sizes and their directors, private and registered social landlords, individuals, insolvency practitioners, creditors and financial institutions.

Stephanie is ranked as an individual in Chambers and Partners UK for Insolvency/Restructuring with the commentary that she has "a deep and extensive knowledge of the full span of restructuring matters, including insolvency related litigation, advising Directors on their duties and corporate restructuring". 

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