Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
What does it all mean?
Here are some short general explanations of the main legal and financial terms used on this website.
Sometimes terms have special meanings for DAS, so the glossary mentions that where appropriate.
A money adviser or solicitor?(opens in a new window)?can tell you more about any special meaning, if necessary.
Arrestment
This means that money or goods held by a third party are 'frozen'. The most common example is arrestment of funds in your bank account. The third party (eg a bank) may agree to hand the property (funds) over to a creditor.
Asset
Property, including real property (land or buildings) and personal property (eg cash, stocks and shares, or vehicles) that belong to a person.
Attachment
This means that goods held by the person in debt, eg a car, are 'frozen'. Anything that has been frozen ('attached') can be sold at auction. The money raised is then handed over to the person who is owed the money.
Bankruptcy
A form of debt relief, there are two kinds of bankruptcy:
i) Personal bankruptcy
The Scottish legal term for personal bankruptcy is sequestration. This is where an individual, sole trader or partnership is formally declared bankrupt by the court (ie they cannot pay their debts) and that the debts and assets of a person should transfer to an appointed trustee.
ii) Company bankruptcy
Companies can also fail and if this happens, the company is said to be insolvent. It may be made subject to a liquidation, receivership or an administration order issued by the courts.
Benefits
These are benefits paid to you by the state and include income support, child benefit, job seeker's allowance, disability benefit, housing benefit, and council tax benefit. Find out more about benefits: www.dwp.gov.uk?(opens in a new window).
Binding
For example, an agreement, which cannot be legally avoided or stopped.
Budget
A list of all your income and expenditure.
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Credit
A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date.
Creditor
A creditor is an individual or a company that is owed money by another person or sole trader (the debtor).
See also regulation 2(1) of the Debt Arrangement Scheme (Scotland) Regulations 2004?(opens in a new window).
DAS administrator
The Accountant in Bankruptcy is the DAS administrator. She is responsible for maintaining the DAS Register which contains details of debt payment programmes (DPPs), and for the approval of money advisers, payments distributors and debt payment programmes (DPPs).
DAS approved money adviser
A DAS approved money adviser is a general money adviser who has received further training (and been approved by the DAS administrator) to act on behalf of the debtor to negotiate a debt payment programme (DPP) under DAS.
Debt
Debt means any money that is owed or due to someone else.
Debt management
A form of dealing with debt where the debtor can pay their debts (including interest and penalty charges) in full - they just need a bit more time. The debtor will keep control of their assets, most importantly they will keep their home.
Debt payment programme (DPP)
An agreement?under the Debt Arrangement Scheme (DAS) that allows you to pay off your debts over an extended period of time. The programme can be for any amount of money or for any reasonable length of time.
Debt relief
The last resort for a debtor when dealing with debt where the debtor cannot pay their debts - trust deeds and bankruptcy. The debtor will lose control of their assets, possibly including their home and their credit rating will be greatly affected.
Debtor
A debtor is an individual or sole trader who owes money to another person or company (creditor).
See also regulation 3 of the Debt Arrangement Scheme (Scotland) Regulations 2004?(opens in a new window).?
Default notice
This is a letter reminding a debtor that they haven't paid their debt. This must be issued by a creditor in respect of debts covered by the Consumer Credit Act 1974 before any further action is taken.
Diligence
We all rely on people keeping their promises. To deliver food, build houses, and pay for goods and services. Sometimes, people do not keep their promises. If that happens the courts may order someone to pay what they are due.
In Scotland, there are a number of ways that people can be made to pay after a court order has been made. The most common forms of court enforcement, or diligence, are arrestment , earnings arrestment and attachment. There are other less common ways to enforce court orders. They include inhibition and adjudication, and your lawyer or adviser can tell you more about them if needed.
Diligence stopper
A court order which stops the operation of existing diligence and prevents future diligence.
Direct debit
An instruction you give to your bank or building society to make regular payments from your account to a specific company. Unlike a standing order you agree that the creditor can vary this amount each month.
Earnings arrestment
If you are working, the money you owe to a creditor can be taken from your wages/salary directly from your employer by an earnings arrestment.
Hire purchase (HP)
The pre-agreed purchase of an asset where the asset eg computer is in your possession as long as repayments are kept to. Once enough payments are made, the asset becomes your (the hirers) property.
Maximising income
Increasing the amount of income you earn.
Money adviser
Someone who is trained to offer advice both on debt and on increasing your income. A money adviser?can help you work out what your options are and, where needed, negotiate affordable payments and set up repayment plans with your creditors.
Net/after deductions
An amount of money eg income you take home after income tax, national insurance contributions, payments towards a pension scheme or any other deductions have been deducted, usually by your employer when you get paid.
Protected trust deed
Secured loan
A loan which is backed up by assets belonging to the borrower (normally your property) in order to decrease the risk taken on by the lender. Mortgages and some personal loans are secured loans. If you don't maintain your repayments, your property can be at risk of repossession.
Sequestration
The Scottish legal term for personal bankruptcy is sequestration. This is where an individual, sole trader or partnership is formally declared bankrupt by the court (ie they cannot pay their debts) and that the debts and assets of a person should transfer to an appointed trustee.
Sole trader
An individual proprietor of the simplest form of business, eg a shop owned and run by a single person.
Standing order
An instruction you give to your bank or building society to make regular payments from your account to a specific company. This is a fixed amount unlike a direct debit which can vary.?
Surplus income
This means the amount of money which you have left over when you subtract necessary expenditure from your income.
Tax credits
Tax you receive back in certain circumstances, eg pension credit, child tax credit and working tax credit.
Trust deed
A form of debt relief where you're unable to pay your debts but have money tied up in assets, such as a house. Creditors can agree that you give everything you own to a trustee (usually an accountant) and sign a trust deed, which is legally binding. The trustee offers to pay your creditors as much as possible of what you owe them from the value of your assets. If it is a protected trust deed then the trust deed is a diligence stopper.
Trustee
Usually an accountant (a qualified insolvency practitioner), a trustee acts for the creditors by managing the trust deed when a debtor agrees to sign over their assets into a trust deed or when they are declared bankrupt.
Unsecured creditor
A creditor who does not hold security (such as a mortgage) for money owed.
