Personal Debt Solutions - Individuals, Partnerships & Sole Traders

Find out more - www.dealwithyourdebt.net

There are three main procedures for individuals who face financial problems. We would always explore every option for individuals, and offer our advice based on individual circumstances.

Initial discussions are absolutely free, and come with a wealth of knowledge from our advisers.

We will give a brief outline of the main procedures below however as each individual’s circumstances will be different we would ask that you get in contact with a member of our team for advice tailored to your needs.

Sequestration (Bankruptcy)

Sequestration is the Scottish term for Bankruptcy. You can apply for your own Bankruptcy through the Accountant in Bankruptcy, if you meet the set criteria. Creditors can also petition for your bankruptcy; however this is done through the court.

When you are bankrupt, a Trustee is appointed to look after your financial affairs. In doing so, the Trustee will deal with your creditors, who will no longer be able to pursue you for the debts incurred up until the date of the bankruptcy. When applying for bankruptcy, you can nominate a Trustee of your choice, as long as it has been agreed with the Trustee prior to your application.

The Trustee is required to realise assets for the benefit of your creditors, although some of assets are exempt. The Trustee will also work out a budget with you to cover normal living costs. If you have surplus income after the deduction of the normal living costs, you will be asked to make a weekly/monthly contribution.

You must co-operate with your Trustee during your bankruptcy and inform them of any changes in your circumstances. At the end of your Sequestration any remaining balances owed to creditors are written off and you cannot be pursued for them. There are a few exceptions, namely secured debts, student loans and fines.

Protected Trust Deeds

A protected Trust Deed is another form of insolvency, It is a legally binding voluntary arrangement between yourself and an Insolvency Practitioner (Trustee) and last for a set period which is agreed at the outset.

An offer is put to your creditors in order for the Trust Deed to gain protected status. If the creditors accept the offer, creditors can no longer pursue you for the debts in your Trust Deed.

The Trust Deed allows you to pay something towards your debt, knowing that interest and charges are frozen. The Trustee has a duty to realise their interest in any assets and collect any disposable income which you may have, by way of a contribution.

Debt Arrangement Scheme (DAS)

The Debt Arrangement Scheme is a formal arrangement introduced by the Scottish Government. The scheme allows you to repay your debt in full over a period of time, during which interest and charges are suspended. DAS enables you to make one single payment every week/month, which is then distributed to your creditors. Whilst in the DAS, creditors cannot take any further action against you. Your home and car etc, are not at risk in the DAS. The DAS is also available to businesses.

Commonly Asked Questions

Will I lose my home?

This will depend on the amount of equity in your home. In most cases, the Trustee should be able to reach an agreement to avoid the loss of your home.

Can I keep my car?

If your car is valued at £3,000 or less, then it is considered an exempt asset. Even if you car is valued at more than this, you may be allowed to keep it if it is essential in order for you to continue working.

Can I still have a bank account?

Yes, as long as you do not owe money to that bank and your account in kept in credit. Some banks are better than others at providing bank accounts. If required, we will be able to advise you on this.

What next?

If you would like more information on how to manage your debt, visit our dedicated website at www.dealwithyourdebt.net.

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