The Insolvency Act in 1986 delivered a formal repayment proposal that when presented to a debtor can legally ask them to erase.
The document is known as an individual voluntary arrangement (IVA) can help people who have difficulty in paying their unsecured loans off. Typically those with debts of over 15k have more chance of being rolled on this program.
Government Approved Debt Solution mentions that the IVA does not apply in Scotland. Scotland they have a legislation called Trust Deeds. It may be worth reading about Government debt help if you are facing a debt crises.
