Debt

A Debt is an amount of money owed.

Debt Arrangement Scheme

The debt arrangement scheme (DAS) is a statutory scheme run by the Scottish Government to help people living in Scotland repay their debts.

Debt Collection Agencies

Debt collection agencies are organisations that chase outstanding debts. They are either employed by creditors to recover the debt or they can buy the debt from the creditor.

Debt Consolidation

Debt consolidation is the term for taking out a loan & using the money to repay other debts.

Debt Management Plan (DMP)

A debt management plan is a way of repaying your debts by making reduced payments to your creditors if you can’t afford the full contractual payments.

Debt Payment Programme (DPP)

A debt payment programme (DPP) is the name given to the formal repayment programme provided under the debt arrangement scheme (DAS). A DPP lets you repay your debts over a realistic amount of time without the threat of court action from your creditors.

Debt Relief

A process that is put in place to stop creditors taking action against a debtor to recover what is owed to them.

Debt Relief Order (DRO)

A debt relief order is a way of writing off your debts if you’re unable to pay them. It’s a form of insolvency. You have to owe less than £50,000 to apply for a debt relief order. 

Debt Relief Restriction Order 

A formal insolvency proceeding, similar to a BRO, whereby someone who is subject to a DRO may have a Court order made against them, that will mean the restrictions of a DRO continue to apply for a specified period of (between 2 and 15 years). If during the course of the DRO application, or after the approval of a DRO, the debtor has subsequently been found to have failed in the provision of an open and honest account of their financial affairs, or has not co-operated with the Official Receiver, a debtor may have a DRRO enforced against them. 

Debt Relief Restriction Undertaking 

Similar to a DRRO but where a formal undertaking is agreed to by the debtor without the involvement of the court. 

Debtor

A debtor is someone who owes money.

Decreasing Term Assurance

Decreasing term assurance is a type of life assurance that pays out a lump sum if you die within the term, but where the amount that’s paid out reduces during the term.

Decree (Scotland)

A decree is a judgment or order, issued by the Scottish courts for non-payment of a debt. 

Deductions From Earnings Order

Action which can be taken by the Child Support Agency in relation to the recovery of unpaid child support by direct instruction to the employer without the need to go through court.

Deed

A legal document that has been signed and witnessed. This term is usually used for legal documents relating to property, such as a deed of assignment, a mortgage deed or a title deed.

Default 

Failure by a debtor to meet their obligations, usually in the terms of a repayment.

Default Notice

A notice issued by a creditor when a financial agreement fails because the arrangement has not been kept. Issuing a default notice is a legal requirement within the CCA for the lender to inform the debtor that they are intending to take steps to recover the money owed to them.

Default Notice

A creditor issues a default notice when the terms & conditions of a credit agreement are broken, for example if you can’t pay your contractual payments.

Defence

The statement of facts and legal arguments used by and relied upon by the defendant of a claim.

Defendant

A person who is being taken to court or is being charged with a criminal offence. In civil cases this is known as the respondent.

Deficit Budget

An income and expenditure shows an overspend instead  of a surplus,  disposable income.

Deficit Financial Statement

Where a client's income is lower than their expenditure

Dependent

A person who is financially dependent on another person and who is not entitled to any benefit income of their own.

Deposit Protection Scheme

Where the tenant pays a deposit for an assured shorthold tenancy, the landlord or letting agent must protect this through a Government-approved deposit protection scheme.

Dependent

A dependent is someone who relies on others financially, for example a child. The rules on a when a child is considered a dependent may differ depending on different areas of law. For example, in the case of welfare benefits, a child may still be considered a dependent if they are in full-time education, or in an approved apprenticeship scheme up to the age of 19.

Diligence (Scotland)

Diligence is the term for debt enforcement through the Scottish courts.

Direct Debit

A direct debit is an instruction that you give your bank to pay a certain person or company each month. A direct debit can be for a variable amount and has to be varied centrally by the company it is set up to pay. It differs from a standing order instruction which you have control over through your bank. You can cancel a direct debit, and under the direct debit indemnity guarantee, you can request a refund from your bank if an amount has been deducted in error.

Discharge Or Final Discharge

A process whereby a debtor is freed from bankruptcy debts (with certain exceptions) or freed from the restrictions of bankruptcy. A document is sent to a debtor informing them that the bankruptcy period is over.

Discount Rate

A discount rate is an interest rate that’s reduced for a certain amount of time before it reverts back to the standard rate. Discount rates are often offered as a type of mortgage rate, or for energy bills.

Disposable Income

Disposable income is the amount of money which you have available to spend on non-essential items after you’ve paid for your household bills.

Distress

The right for anyone whom rent is payable to, to sell debtors goods to contribute to the repayment of rent arrears.

Domiciled

Domiciled refers to the country where you live or where your principal residence is