Diligence. What is it and what are my rights?

When can the people I owe use diligence?

The people you owe can start diligence when:

• The sheriff court issues a decision/decree ordering you to pay the full debt
• You do not keep up with payments to a ‘time to pay direction’, which lets you pay in instalments
• The sheriff court issues a summary warrant for debts such as council tax or tax debts owed to HM Revenue & Customs

You should get a ‘Charge to Pay’ or a ‘Charge for Payment’ before diligence starts.

What is a charge to pay or charge for payment?

The people you owe must send you a  Charge to Pay or Charge for Payment to start diligence.

• Charge to Pay is for debts up to £5,000
• Charge for Payment is for debts of £5,000 or more

These tend to be delivered in person by a sheriff officer.

• It gives you 14 days to pay the debt before the people you owe can take further action
• The people you owe can begin diligence if you do not pay
• They could also begin bankruptcy proceedings if you owe more than £3,000

The people you owe may send you a copy of the Accountant in Bankruptcy Debt Advice and Information Package booklet.

This explains:

• What actions they can take to collect a debt
• Which organisations can help you

Worried about diligence?

What actions can the people I owe take using diligence?

There are many ways to collect an unpaid decision/decree or summary warrant.

The people you owe use whatever they think will get their money back. They may use more than one method.

Earnings arrestment

• This orders your employer to take off a percentage of your wages to pay to the debt

Bank arrestment

• This freezes money in your bank account
• The people you owe can apply for a ‘furthcoming’ if you do not pay
• A furthcoming orders your bank to hand over the money
• Not all of the money in your account is frozen
• The bank releases your account back to you if the people you owe do not apply for a furthcoming within 14 weeks

Inhibition order

• This stops you selling your home until you pay the debt
• The debt needs to be paid from the sale of your house if you move

Attachment (Goods outside home)

• This lets sheriff officers take goods you own
• They can sell these goods if you do not pay
• It only applies to goods kept outside your home, like a car
• Some goods cannot be taken by sheriff officers, like tools (up to the value of £1,000) needed to do your job, or a car that is reasonably required and worth under £3,000

Money attachment

• This is similar to an attachment
• It applies to cash or cheques you keep outside your home
• It is usually used for business debts

Exceptional attachment order

• This is similar to an attachment
• It allows sheriff officers to take goods from inside your home
• The people you owe need permission from the sheriff court to do this
• This action should only be used as a last resort
• Some essential household goods are protected and cannot be taken
• You can apply to the court to have some attached goods released

Free help and support

Contact us for free if:

• You get any court paperwork
• You have a Charge to Pay or Charge for Payment
• You think diligence has started

We can give you the expert advice you need to get back on track.