Part 4, Chapter 2 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 introduces a new diligence over land owned by a debtor which is intended, together with residual attachment, to replace the existing diligence of adjudication for debt. Land attachment has not yet been commenced.

Land attachment is intended to provide a diligence which allows unsecured creditors to enforce debt by taking action against a debtor's land. In this context 'land' means land including buildings and other structures, land covered by water and long leases of land of which the debtor is the tenant. Land attachment will give the creditor a 'subordinate real right' over the attached land as security for the sum recoverable by the land attachment.

Land attachment will require the debt to be constituted by decree or document of debt and the service of a Charge for Payment upon the debtor. Where the debtor is an individual, the creditor will also be required to provide a Debt Advice and Information Package no earlier than 12 weeks before registering a notice of land attachment.

Land attachment is designed as a two-stage process whereby the creditor can secure the amount owed by the attachment, but can only bring about the sale of land by securing a warrant for sale from the court. There are a number of protections incorporated into the legislation, intended to balance the interests of debtors and creditors, particularly where attached land includes a dwellinghouse which is the sole or main residence of the debtor.

No date has been set for commencement of this provision.

This section of the website is intended to give a broad overview of diligence. It is not a full statement of the law nor does it provide a full description of each of the processes.