Newer version available

There is a newer version of this publication available:
Debt Advice Handbook Scotland 1st ed - with new material

Dealing with an inhibition

• Insolvency and the Debt Arrangement Scheme

As a debt adviser, there is not much that can be done to deal with an inhibition other than arrange for the client to pay the debt off, look at the Debt Arrangement Scheme (DAS) or an insolvency option.

One way to deal with it is to recall the original court decree and challenge the debt, asking for a ’decree of absolvitor’. This would be accepted as capable of lifting the inhibition.

Insolvency and the Debt Arrangement Scheme

An inhibition does not stop your client from applying for an insolvency solution or the DAS.

In an insolvency situation, the inhibition is struck down. However, the trustee may apply for their own inhibition as part of the insolvency process.

While the client is in the DAS, the inhibition continues, but the inhibiting creditor cannot pursue the debt where it is included in the Debt Payment Programme (DPP), and when the debt has been paid off, they should recall the inhibition.