Where a decree has been awarded in favour of a creditor and payment is not forthcoming after a charge for payment has been issued, a creditor may consider applying to make the debtor bankrupt to recover sums due. How can you use bankruptcy to recover debt in Scotland?

If a debtor is declared bankrupt, their full estate including their home will be handed over to the appointed trustee (usually the accountant in bankruptcy). It is the duty of the trustee to sell the debtor's assets

When it comes to debt recovery, a pursuer must obtain a payment decree from the Sheriff Court against a defender (debtor), and then take steps to enforce the decree in order to recover sums due.

One of a number of different procedures a pursuer can utilise,with a view to recovering an outstanding sum, is an inhibition.

• Once registered this prohibits a defender from selling, transferring or otherwise disposing of any land and other immoveable assets i.e. houses and commercial premises, until the debt is settled

Using the Small Claims Court in Scotland - this can be utilised by landlords looking to recover a debt owed by a tenant. Usually these debts relate to rent arrears or costs arising from repairs. If tenant fails to pay a debt owed to the landlord, and has also failed to respond to correspondence, then the landlord must decide:

- whether the debt is worth pursuing further

- which method to use in order to recover the debt in the most cost/time effective manner

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Debt Recovery Scotland - Where an order for payment is granted in a court or tribunal, this will not automatically result in payment. The order will need to be enforced against the debtor and his or her assets. One method of enforcing an order for payment is by executing an arrestment.

What is an arrestment?

A form of diligence where a creditor with a court order can arrest the debtor's moveable property where that property is in the hands of a third party, e.g. arrestment

So just how can you recover factoring & common maintenance debts from owner-occupiers? A Notice of Potential Liability for Costs can assist housing associations and factors to recover money due by owner-occupiers for factoring and common maintenance debts. It was introduced in 2004 and can be used in relation to flats or houses. It does not solely relate to costs already incurred and can be lodged in relation to planned works where there is doubt regarding an owner's ability/likelihood of paying their share of the

We are frequently asked to raise court actions against debtors whose whereabouts are unknown; would you know how to find a debtor then raise a court action?

In any court action, a summons needs to be served on a debtor. The whereabouts of a debtor may be unknown because:

• The debtor may have moved to another address without the creditor's knowledge since the original debt accrued
• The debtor has not provided an address
• Or, as is sometime the case, provided an inaccurate address

Many creditors

How can you recover money from a debtor if you obtain a court Order which orders your debtor to pay you the debt but your debtor does not make payment?

Do you know what you do next? This is a predicament frequently faced by individuals and organisations who seek to recover debt. Do not give up as there are various options available!

First Step
If you wish to pursue the debt, the first step is to serve a Charge for Payment. This is a statutory