EXPLANATION OF TERMS
Charge for payment
The formal demand for payment following a decree. A Sheriff Officer usually serves it on the debtor who is thereby required to pay the debt within 14 days.
Creditor
Any person, business or organisation the debtor owes money to.
Debtor
Anyone who owes money.
Debt Arrangement Scheme
A free debt management tool introduced by the Scottish Executive accessed through an Approved money adviser (see www.moneyscotland.gov.uk). It assists people with two or more debts who want to pay what they owe by giving them more time free from the threat of enforcement (diligence) or bankruptcy.
Decree
The term for a formal court order that requires a debtor to pay a sum of money to a creditor. This might follow a court action such as:
- small claim (up to £750);
- summary cause (£750 to £1500); or
- ordinary action (more than £1500).
Petition
A formal application to the court.
Receiving Order
An order of the court in England or Wales placing the control of a debtor's assets under the control of an Official
Receiver pending formal bankruptcy charges.
Sequestration
The Scottish legal term for bankruptcy. Bankruptcy is a formal court process, which transfers a debtor's property to a permanent trustee.
Summary Warrant
A creditor's application to the court which if granted results in a court order giving the creditor authority to recover unpaid rates, taxes or Community Charge and so on without first having to obtain a decree for payment.