scottish solutions for debt help

See what debt solutions are available to you:

  Write off unaffordable debt
  Reduce & consolidate debts
  Freeze interest and charges
  Legal protection against creditors
Disclaimer: May not be suitable in all circumstances. Your credit rating may be affected. For guidance only. Fees apply. Results are not definitive advice. Financial information entered must be accurate and would require verification. Other factors influence your most suitable debt solution.

Eligibility Check

Money Helper is an important service set up by the government. They provided free debt counselling, debt adjustment and credit information. Money Helper is part of the Money & Pensions Service. We are not affiliated with Money Helper in any way

Trust Deed

It is designed to help people with unaffordable debts of at least £5,000 and needs to be set up with the help of an Insolvency Practitioner who will charge fees to set up and supervise the PTD, however these fees will usually be included within the monthly payment which you make. The Insolvency Practitioner will write to your creditors and ask them to agree to the trust deed. Your trust deed will then become protected if a sufficient proportion of creditors agree to it.

The agreement usually lasts for four years and once it’s completed, any unsecured debts included will be written off. Trust deeds are not available if you live in England, Wales, or Northern Ireland.

During your Trust Deed, you will continue to pay your bills and other important living costs and make a payment into your trust deed towards your unsecured debts. Your creditors will expect you to pay in as much as you realistically can afford, so may want you to cut back on expenditure in some areas.

Benefits of a Trust Deed

^
You will be debt free within an agreed time frame.
^
Interest and Charges will be frozen once the Trust Deed is protected. There are restrictions on expenditure for someone entering into an Trust Deed.
^
After successful completion any remaining debt included in the arrangement will be written off.
^
Creditor contact will stop once the Trust Deed is accepted.
^
A PTD will protect your home if you are a homeowner.

Considerations of a Trust Deed

^
Once your PTD is approved you are bound by formal insolvency proceedings and your credit rating will be affected.
^
Failure of a PTD could result in bankruptcy.
^
A re-mortgage may be required if you are a homeowner and if you cannot re-mortgage the PTD may be extended.
^
Your details will be recorded on the register of insolvencies.

Minimal Asset Process

It is aimed at people with a low income and not many assets and is cheaper and more straight forward than sequestration or full bankruptcy. You can only apply for a MAP through an approved money adviser and you will need to pay a fee of £50 (reduced from £90 at least until the end of September 2020) to the Accountant in Bankruptcy. This can be paid in instalments, but the full amount needs to be paid before you can apply. The fee may be waivered if you receive certain benefits.

To qualify you must meet the following criteria:

  • Your income must be solely made up of benefits or you must have no surplus income to make a contribution once you have paid your essential living costs
  • Your debts are more than £1,500 and less than £25,000 (increased from £17,000 until at least the end of September 2020)
  • Your car is worth £3,000 or less Any other assets are worth less than £2,000 with no single item worth more than £1,000
  • You are not a homeowner
  • You haven’t been made bankrupt in the last 5 years

Benefits of a MAP

^
A MAP usually lasts for 6 months however if your circumstances change or you do not comply with the terms this may be extended.
^
Debts will be written off once the MAP is discharged.
^
Creditor contact will stop once the MAP is in place.

Considerations of a MAP

^
Once the MAP is in place, you are bound by formal insolvency proceedings and your credit rating will be affected.
^
Your details will be recorded on the Register of Insolvencies.
^
While during the MAP and for a period of six months after you cannot borrow more than £2,000 without declaring you are bankrupt to the lender.
^
Your employment could be affected, and you are unable to act as a company director.

Debt Arrangement Scheme

Under DAS you can apply for a Debt Payment Programme (DPP) which allows you to pay off your debts over a period of time. If your circumstances change you can apply to vary the terms of the DPP. You must seek the assistance of a Money Adviser before you can apply for a DPP.

You’ll keep making reduced repayments until you have repaid your debt in full which will take longer as you will be making reduced payments.

The DAS is only available for people living in Scotland.

Benefits of a DAS

^
Interest and Charges are frozen if the debt payment plan is accepted.
^
It is legally binding on your creditors.
^
Any assets you have are protected.
^
You don’t have to pay an administration fee for the running of the DPP.

Considerations of a DAS

^
Your details will be registered on a public register (DAS Register).
^
Your credit rating will be affected.
^
If you don’t keep up the repayments the DPP could fail and your creditors could add interest and charges and take further action.

Sequestration

Sequestration/Bankruptcy is a legal process usually suitable for people who little hope of paying back their debts in a reasonable time and whose circumstances are unlikely to change. Sequestration is only available to people living in Scotland.

Sequestration can give you a fresh start and will write off most of your debts however the decision should not be taken lightly as it can affect other areas of your life such as your employment or living arrangements. You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living. Sequestration will usually least for 12 months and there are usually no payments required, however if you have any surplus income then payments are required under an Income Payments Arrangement which can last for up to 4 years.

The Accountant in Bankruptcy (AiB) are responsible for administering the process of personal bankruptcy in Scotland. You need to have at least £3,000 debt to qualify and not have been made bankrupt in the last 5 years. If your debts are less than £3,000 then you may be able to apply for a Minimal Assets Process Bankruptcy (MAP). You can only apply for bankruptcy through an approved money adviser and the fee is £150 payable to the Accountant in Bankruptcy . You can pay in installments however you must have paid the fee in full before the application is made.

Benefits of a Bankruptcy

^
Bankruptcy usually only lasts for 12 months.
^
Debts will be written off once the bankruptcy is discharged.
^
Creditor contact will stop once the bankruptcy is in place.

Considerations of a Bankruptcy

^
You could lose assets of value including your home if you are a homeowner.
^
Once your Bankruptcy is approved you are bound by formal insolvency proceedings and your credit rating will be affected.
^
Your employment could be affected, and you are unable to act as a company director.

DEAL WITH YOUR DEBT TODAY TO SECURE A BRIGHTER FUTURE FOR YOU AND YOUR FAMILY

Answer a few quick questions

Use our easy online questionnaire to start your journey and see how we can help. Once complete a friendly member of our team will be in touch to discuss your situation.

Speak to a debt specialist

Book a telephone consultation today – You can speak to a specialist immediately. Alternatively, if you are not ready to talk to someone use our unique contact-free fact-find service.

Choose your plan

Once we’ve assessed your personal circumstances you are free to choose the best option for you. This is 100% confidential and with no obligation to choose any of the solutions we discuss.