Overview of Time to Pay

If a creditor takes enforcement action against you for an unpaid debt, you have the right to apply to the court for Time to Pay.

You can ask to pay the debt in instalments or a lump sum at a later date. You need to give these details at the time of applying. 

A creditor is a company or person you owe money. They can also be called the pursuer or claimant.  

You are a debtor if you owe money to a creditor. You can also be called the defender or respondent. 

The law says the court should agree to Time to Pay if it’s reasonable in the circumstances.  

The court will consider:

• your financial situation 
• any other debts you have
• how reasonable your payment offer is
• if it would be unreasonable for the creditor to refuse your offer

The law 

The law on Time to Pay is covered by:

• Debtors (Scotland) Act 1987
• Consumer Credit Act 1974

Protection from creditors 

A Time to Pay stops the creditor taking any further action to get their money back (sometimes called diligence). 

This includes: 

• wages arrestment - payments taken directly from your wages 
• bank arrestment - the freezing of money in your bank account 
• using sheriff officers to try to take things you own 

This protection can stop if you do not keep to the agreed terms. 

Hire Purchase (HP) goods 

If you have an HP agreement covered by the Consumer Credit Act (1974), a Time to Pay agreement can stop the creditor taking the goods back. It's called a 'Time Order' for this type of debt. 

Read more about 'Time to Pay' and HP goods on the National Debtline website. 

Inhibition: if you own a property 

Even if you have a Time to Pay agreement a creditor can still apply for an ‘inhibition’. This stops you selling your home. 

Debts that can be included in a Time to Pay 

You can ask for Time to Pay for most debts under £25,000. 

You can only ask the court for Time to Pay once for the same debt. If you do not keep to the agreement, you cannot apply for another one. 

Debts that cannot be included

There are some debts where you cannot ask for Time to Pay.

These include:  

• money you owe to do with divorce or maintenance 
• income tax 
• VAT 
• car tax 

The rules are also different for rent or mortgage arrears debt. 

Read about other types of debt and money advice you can get.

Read about Time to Pay arrangements for HMRC debts on GOV.UK