What is a time to pay direction
A ‘time to pay direction’ (TTPD) is a court procedure before a decree is granted. It is covered in sections 1–4 of the Debtors (Scotland) Act 1987. It was introduced for clients who are willing but unable to repay their debts at the contractual amount.
It can only be used for a single debt, if the client has multiple debts, then an application for a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS), or insolvency may be a more suitable option (see Chapter 6). Only individuals can apply. Limited companies, partnerships and limited liability partnerships are ineligible to apply for a TTPD, although individual partners can apply. If the decree is in the name of the partnership, the creditor can still take action against the partnership. Seek expert advice on this.
Sole traders can apply, even if the debt is registered in the name of the business, as there is no distinction between personal and business debts.
The client can apply to make payments weekly, fortnightly or monthly, or even by a deferred single payment of a lump sum. This may be an option if the client can raise funds within a reasonable period.