Struggling to pay back money you owe?

If you’re worried about people you owe money to taking steps to get the money back or you’re thinking of applying for bankruptcy (sequestration), a protected trust deed or the debt arrangement scheme (DAS) you can apply for a moratorium, which prevents creditors taking action while you get advice. The moratorium protects you for six months but it does not stop interest or charges building and may impact on your credit rating. 

If you’re worried, remember that creditors and sheriff officers should be reacting sympathetically to Covid-19 related financial hardship and should treat you fairly as per the Financial Conduct Authority’s rules. If this does not work and the creditor has sent you a document called a “Charge for Payment for Money” giving you 14 days to pay the debt in full, then you should apply for a moratorium. 

You can apply for a moratorium yourself but it is recommended you only do this after getting advice. Once you have applied for a moratorium, if you don’t get advice within 6 months, and make an application for either DAS, protected trust deed or bankruptcy, then it will expire and your creditors can take action again. Read more about protection from action by creditors on the Accountant in Bankruptcy website.

If you have a Debt Arrangement Scheme and can’t afford a payment

If you have a Debt Arrangement Scheme (DAS) and you can’t afford a payment, speak to your money adviser. They can arrange a payment break for you.

If you can’t contact your money adviser then you can ask for a payment break yourself. Read our page about coronavirus and people in a Debt Arrangement Scheme.

Struggling to manage your money?

See our advice page on managing money in the current crisis