The Scottish Government

Bankruptcy

The process of bankruptcy in which control of a debtor's assets are transferred to a trustee who sells the property and distributes the proceeds amongst the creditors.

DAS

Debt Arrangement Scheme introduced by the Debt Arrangement & Attachment (Scotland) Act 2002. A statutory scheme by which debt repayment plans compiled may be formally approved and diligence prohibited while it is in operation.

Diligence

The legal procedures by which orders of the civil courts are enforced. In the case of debt, the procedures are available to a creditor awarded a decree for payment of money due. They are used against a debtor's assets by attaching and selling them in order to satisfy the debt.

Dividend

The distribution of funds to creditors in a bankruptcy. Also, the proportion of the debt repaid to a creditor in a bankruptcy; expressed as x pence in the £.

Estate

A legal term which simply means all property and rights belonging to a person.

Protected Trust Deed

A form of voluntary trust deed for creditors whereby a sufficient number of the creditors do not object to it, the Trust Deed automatically becomes protected so binding on all the creditors. None of the creditors may do diligence or then seek to have the debtor declared bankrupt.