The majority of the time, customers contact us regarding debts that are owed to them with the understanding that a lengthy and expensive court action will be necessary before they have a chance to recover those funds. However, with the correct set of circumstances, there may be an alternate solution available to the problem.
Summary diligence is a feature of the Scottish legal system that is unique to the country. “Summary diligence” is a legal term that refers to the enforcement of certain legal rights by the use of a document (such as a lease) rather than a court order. It can be a beneficial tool for creditors who want to avoid going to court altogether.
It is only when the document has been registered in the Books of Council and Session that the authority to rely on it can be exercised. In the event that your paper is not recorded in the Books of Council and Session, everything is not necessarily lost. You should examine the document to determine whether it contains a clause that allows the document to be registered “for the purpose of preservation and execution.” It is possible to register and rely on the document if this is the case. If it does not, you will almost certainly need to seek legal counsel regarding legal action.
As long as the document is registered and an extract of it can be obtained, it should be able to do some type of summary diligence on the information contained inside. Summary due diligence can take on a variety of different shapes and forms. Among the most common instances are:-
- A Fee for Acceptance of Payment
A written demand for payment is served on the debtor by Sheriff Officers, who are instructed to carry out the order. Under the Charge for Payment, the debtor will have 14 days to make payment after receiving notice of the charge. If payment is not received within that time limit, the debtor’s “apparent insolvency” can be established by relying on the lapsed Charge in order to bring sequestration or liquidation procedures against the debtor.
- Statutory Requirement
This is yet another type of written demand that gives the debtor a term of 21 days in which to pay the amount owed to the creditor. If payment is not received within that time limit, the debtor’s “apparent insolvency” can be established by relying on the lapsed Charge in order to bring sequestration or liquidation procedures against the debtor.
- Arrest at a financial institution
The Sheriff Officers can serve an arrestment on the debtor’s bank accounts if you know where the debtor has bank accounts. If the debtor has accounts with that bank and the amount of money in such accounts exceeds the protected statutory minimum balance, the bank is required to seize the funds in those accounts up to the amount of the debt owed to the bank. If you do not know where the debtor banks, Sheriff Officers can serve speculative arrestments on the “big four” banks if you do not know where the debtor bank is located. The outcome of the arrestment will be communicated to you in any situation. If the arrestment was successful, you will be informed of the amount of money seized.
It is important to note that if the debtor does not have the financial means to pay their bills, you may encounter difficulty in collecting your debts. In the event that you require guidance regarding outstanding debts, we would be pleased to provide you with information on your options, which may include court procedures or summary diligence.