Depending on specific individual circumstances you may qualify for one of the below products...

Trust Deeds - Glasgow, Edinburgh & all over Scotland
Trust Deeds - Glasgow, Edinburgh & all over Scotland

Trust Deed

A Trust Deed is a legally binding agreement between you and your creditors, whereby you agree to transfer all of your assets and liabilities to an Insolvency Practitioner, who will act as your Trustee.  Your income & expenditure is assessed and a contribution agreed.  You will make this contribution for a period of 48 months and thereafter, the remaining debt is written off.  Your creditors are given 5 weeks to decide whether to accept or reject the proposal and as long as most of your creditors agree, the Trust Deed becomes protected.  This means that your creditors can not take any action against you for recovery of a debt included in the Trust Deed and all interest and charges are frozen.
Pro’s
  • Freezes interest and charges
  • Protects you from creditors taking legal action to recover the debt
  • Any debt you cannot afford to repay is written off
Con’s
  • You may need to realise any equity in your property
  • Your credit rating may be affected
  • Your Trustee may make you Bankrupt if you do not comply with the terms of the Trust Deed

Sequestration

Sequestration is the Scottish term for Bankruptcy and works similar to a Trust Deed.  Your income and expenditure is assessed and your disposable income is paid to your Trustee for a period of 4 years.  At this point, your creditors may receive a dividend and thereafter, the remaining debt is written off.  There is a £200 application fee to make yourself bankrupt, which is paid to the Accountant in Bankruptcy, who will award your Sequestration.  As long as you comply with your Trustee, you can expect to be discharged after 12 months however if you have the means to do so, you will make a contribution for 48 months.
Sequestration comes with some limitations.  You will be unable to act as a director of a Limited company and are barred from certain jobs.
Pro’s
  • Unsecured debts will be written off
  • Creditors will stop collection activity
  • You will be discharged after 12 months and debt free in 48 months
Con’s
  • Your credit rating may be affected
  • You may have to sell assets you own to repay some of your debt
  • You will be unable to take out credit while you are an undischarged bankrupt

 

DAS

A Debt Payment Programme via The Debt Arrangements scheme is a Government backed solution which allows you time and space to repay your debts back, in full.  It freezes interest and charges and creditors will stop collection activity.  Your surplus income is assessed using the Common Financial Tool and you will pay an affordable amount to your debts each month.  As you are paying your debts back, your assets are not taken into account therefore you are not at risk from losing your home or any other asset of value.
Pro’s
  • You can repay your debts back at an affordable level
  • Removes creditor pressure
  • Freezes interest and charges
  • Protects assets
Con’s
  • You may have to pay a fee
  • Your credit rating may be affected
  • No debt write off

 

MAP

The Minimal Asset Process or MAP for short is another route into Sequestration.  If your sole income is benefits or you do not have any surplus income to make a contribution towards your debts then you may qualify for MAP.  You must not own any property or land to qualify and your debts must be less than £17,000.  If you qualify for MAP, the Accountant in Bankruptcy will be appointed as your Trustee and you can expect to be discharged from your debts after 6 months.  If during this 6 month period, you start earning or your income increases to the point where you can afford to make a contribution towards your debts, your Sequestration will be converted to a full administration and you will be required to make payments for a period of 48 months.
Pro’s
  • Discharged after 6 months
  • All debts are written off
  • Creditors will stop collection activity
Con’s
  • Your credit rating will be affected for 6 years
  • Your details will appear in the Register of Insolvencies
  • You will be unable to act as director of a Limited company