What is a time to pay order
A ‘time to pay order’ (TTPO) is a ‘diligence stopper’. It is similar to a time to pay direction (TOPD), but it applies post-decree.
In most cases, it can be applied for when a charge for payment has been served, or diligence has started.
A court or tribunal can grant a TTPO where it believes it is satisfied it is ‘reasonable in all the circumstances to do so’. These circumstances are:1s5(2A) D(S)A 1987 •the nature of and reasons for the debt in relation to which the order is sought;
•any action taken by the creditor to assist the client in paying that debt;
•the client’s financial position;
•the reasonableness of any proposal by the client to pay that debt;
•the reasonableness of the objection by the creditor to the offer by the client to pay that debt.
It can be applied for where:2s5(1) D(S)A 1987 •a charge for payment has been served on the client; or
•an arrestment has been executed; or
•an action of adjudication for debt has been commenced.
A TTPO cannot be applied for:3s5(4) D(S)A 1987 •where the amount of the debt outstanding at the date of the making of the application exceeds £25,000;
•where, in relation to the debt, a TTPD or a TTPO has previously been made;
•in relation to a debt including any sum recoverable by or on behalf of the Commissioners for HMRC;
•in relation to a debt including any sum recoverable by or on behalf of Revenue Scotland under or by virtue of the Revenue Scotland and Tax Powers Act 2014;
•car tax due under the Car Tax Act 1983.
Or where:4s5(5) D(S)A 1987 •articles belonging to the client have been attached and notice of an auction given under section 27(4) of the Debt Arrangement and Attachment (Scotland) Act 2002, but no auction has yet taken place;
•money owned by the client has been attached and removed;
•a decree in an action of furthcoming has been granted but has not been enforced.
Therefore, timing is important, and some diligence must be done at an advanced stage before applying for a TTPO. Get expert advice on this.