Time to pay order
A time to pay order (TTPO) is a request to the court after a decree has been awarded and the formal process of diligence has begun (once a ‘charge for payment’ or a bank arrestment has been served or an action for adjudication has commenced) to make payments to repay the debt in instalments. It is similar to a time to pay direction (TTPD) in that it stops any further diligence against the defendant.
A TTPO cannot be used when the debt is:1s5 D(S)A 1987 •over £25,000; or
•for an award in connection with a divorce; or
•for maintenance; or
•for income tax, VAT or car tax.
The application form to apply for a TTPO is a DSA 2. Unlike a TTPD, it is not included in the initial writ and it is not available via the Scottish Courts website under Ordinary Cause Rules. The sheriff clerk’s office should have copies and most advice agencies have copies or know how to access a copy.
Unlike the TTPD, the DSA 2 has more room to include further details – eg, if the defender has other debts. The form must be returned to the correct sheriff court. There are time limits, but these can vary. Any delay in returning a TTPO could affect the defender’s ability to stop or reverse other forms of diligence. It is therefore good practice to request a statutory moratorium at this stage.
If the pursuer does not object to the offer, the sheriff grants the TTPO after 14 days, effectively freezing any future diligence while it is in place.
If, however, the pursuer objects to the TTPO, a date for a hearing in court is fixed, which should be attended by both parties. The sheriff listens to both sides and decides whether to award the TTPO.
If a TTPO is awarded and the client has a change in circumstances which makes meeting the payment difficult, they can apply for a variation to reduce payments.
Generally, TTPOs are expected to clear debts within approximately two years. This time frame is not in any legislation, but has become custom and practice in court and should be taken into account when looking at TTPO as a viable option.
If two payments are missed and the third payment is due, the TTPO fails. It cannot be applied for again.
If a defender has had previous TTPDs which failed, they cannot apply for a TTPO. If, however, a defender applied for a TTPD before the decree which was refused, this does not preclude them from applying for a TTPO.