In Scotland, for the purposes of this Manual, a
’secured‘ debt may arise in cases when the Recovery
Office has taken enforcement action and executed a poinding and/or
arrestment prior to sequestration or liquidation. Poinding was
abolished with effect from 31 December 2002 by the Debt
Arrangement and Attachment (Scotland) Act 2002.
In some circumstances the legal costs incurred can be claimed
as a secured debt in the sequestration or liquidation. However the
amount claimable as secured is limited.
A secured claim will be paid in priority to all other claims
including a trustee or liquidator`s claim for outlays and
remuneration.
No security is given for expenses when an earnings arrestment or conjoined arrestment order was in effect prior to sequestration. Such costs, if outstanding, would be claimed as unsecured.
