If you live in Scotland and are facing over £5000 worth of unmanageable debt to multiple different creditors, Trust Deeds exist to help you wipe off up to 80% of it off and make a financial fresh start. We can combine all of your outstanding repayments into a single reduced monthly sum dependent determined by what you can afford to pay.
Trust Deeds are fixed-term agreements, usually lasting around four years, which means at the end of the period any debt you have not yet paid off will be written off entirely – provided all of your agreed payments have been made. Your creditors are also legally prohibited from contacting you throughout this period and must go through us, your trustee, instead.
Because a Trust Deed is a legally-binding arrangement, a protected Trust Deed makes it so that creditors have to stop sending constant letters and making repeated phone calls in an attempt to get money from you. All of this correspondence has to be sent to us first. Your assigned BRAND NAME adviser can then look over everything for you and can pass on any important information to you if necessary.
Your creditors also lose the ability to carry out any court or legal action against you, and throughout the repayment process your outstanding balance will become frozen – no interest or fees can be added.
Trust Deeds are a fantastic and fully-legislated method of getting back on top of your finances while protecting your most important assets like your home and car. You will also avoid more drastic measures such as entering sequestration.
To qualify you must:
- Currently live in Scotland or have done within the last twelve months.
- Owe more than £5000 in unsecured debt to two or more creditors.
- Be unable to pay back your debts (insolvent).
- Be able to come up with a sum for monthly repayment.
If you meet these criteria, then a Trust Deed might be the right option for you. Get in touch today for some free and impartial advice.
An Individual Voluntary Agreement (IVA) is a way for those living in England and Wales to wipe off their debt through a single and manageable monthly repayment. The agreement is fixed-term, usually lasting five years, at the end of which any remaining debt will be written off provided you have fulfilled all of your agreed payments.
Because the arrangement is legally-binding, you are protected from creditors throughout the process. They cannot take legal action against you, cannot add any more fees or interest to the total you owe and are not allowed to contact you in any way. All communications must go through us instead, and we can relay any vital information in a friendly and easy-to-understand manner.
To qualify, you only have to meet the following criteria:
- You must live in England or Wales
- You need to have two or more outstanding unsecured debts
- Your debts must total more than £10,000
- You must have a disposable income, or relevant assets (although your home and car can usually be protected), which satisfy creditors.
To set up an IVA, you need to approach a licensed insolvency practitioner. If you think you might qualify, then give one of our friendly advisers a call today. If you aren’t exactly sure what insolvency solution is right for you, let us to do the hard work and figure that out for you! Remember, speaking to us is entirely cost-free, and you are under zero-obligation to act on any of our advice.
A Debt Management Plan (DMP) is an informal debt solution which can make repaying your unsecured debts much more manageable by reducing the amount you pay each month. Because it is informal, your creditors are not legally bound to do anything throughout the agreement, unlike processes such as bankruptcy or an IVA.
In order to establish a DMP, we must arrange lower repayments with your creditors. These repayments will be in line with what you can realistically afford, however, because they are reduced this will likely mean that the actual repayment period might extend beyond what was initially agreed. Any debt can technically be involved in a DMP, regardless of how much you owe,Debt Management Plans do not allow you to wipe any debt off. You still have to pay the full amount owed. However, the lower repayments can make this significantly easier, and creditors will often offer to freeze any additional interest or fees due to your commitment to settling the debt. However, this is not a guarantee.
If you are in a situation where:
- You have a stable income which leaves you some disposable cash.
- Debt is getting on top of you, but you could handle reduced repayments.
- You will be able to pay back the full amount owed over a prolonged period of time.
Theoretically, you don’t need an insolvency practitioner to establish a DMP. However, our expertise and connections put us in an advantaged position to arrange a good deal. We also find that many of our clients appreciate the stress relief of allowing us to handle it.
Talking to us is cost-free, so if you think you could benefit from a DMP or just want to ask some questions don’t hesitate to get in contact with us. We offer plenty services such as working out a monthly budget, figuring out how much you can afford to pay, or determining some other debt solution which suits your circumstances. Information from us is impartial and zero-obligation – we can advise you, but the final decision is always yours.
Bankruptcy is a process through which people living in England, Wales and Northern Ireland can declare themselves insolvent (if you live in Scotland, you would use the legally very similar process of sequestration). The process involves transferring control of your assets to an ‘official receiver’ who will then distribute your assets appropriately between your creditors.
Bankruptcy is legally-binding, which means your creditors are not allowed to contact you in any way for any reason. The process will put an end to incessant letters and unsolicited phone calls. Instead, your creditors will be forced to contact us, who can inform you of any critical developments during our scheduled chats.
Bankruptcy can put all of your assets in danger, including your home, but it can be an incredibly effective method of establishing a financial fresh start.
In order to declare yourself as bankrupt you have to:
- Be unable to settle your debts because you are insolvent.
- Have a disposable income that is too low to qualify for an alternative debt solution.
- Owe debts which are getting worse, or at least are not getting any better.
If you meet these criteria, then declaring bankruptcy might be the right step for you. It is fundamental that you seek out professional advice for making any moves towards bankruptcy. Not only is it a legal requirement, but it is a major financial decision.
Our staff are prepared to offer you free and impartial advice on what bankruptcy involves, whether or not you are eligible, and any other courses of action that might be open to you. Give us a call now – we won’t pressure you into anything, and a chat will cost you nothing!
Sequestration is the Scottish equivalent of bankruptcy. It is a formal process which involves people declaring themselves as insolvent (unable to pay their debts). Following from this, you will have to forfeit control of your assets which will be sold off to satisfy creditors. The process will allow you to wipe off up to 100% of your debt, and you will be made fully aware of any assets that are in danger prior to them being sold.
If your circumstances allow for some disposable income, we can also use this to satisfy your creditors. However, sequestration does not technically require any disposable income, which makes it a good option for those who cannot afford a Trust Deed.
Entering sequestration also allows us to put an end to creditor harassment which can remove a significant source of stress. Your creditors must go through us instead, and we can decide what information should be relayed to you.
To qualify for sequestration, you must:
- Live in Scotland or have lived there within the last year.
- Have debts in excess of £1500 which you cannot repay.
- Have not have declared bankruptcy or entered sequestration within the last five years.
- Be able to pay the £200 it costs to submit your application to the government.
If you aren’t sure about whether or not you qualify don’t worry – we can work everything out on your behalf. Sequestration can bring about a fantastic result for many people, but there is no getting around the fact it is a major financial decision.
Having as much information as possible is vital, so call us now for a no cost and zero-obligation conversation. We are committed to explaining everything thoroughly and in an easy-to-understand manner.
If you live in Scotland and can pay off your debts but would benefit from a little breathing space, a Debt Arrangement Scheme (DAS) could be a good option for you. Since their creation in 2004, Debt Arrangement Schemes have allowed thousands of Scots to get on top of a debt without the need to declare themselves insolvent.
In order to establish a DAS, we have to outline a Debt Payment Programme (DPP) which you approve of. DAS is not a fixed-term arrangement, which means the repayment programme will continue until the debt is repaid in full.
However, while the DPP is in effect, creditors cannot add on any more interest or additional charges. You should very quickly start to see real process on your balance!
A DAS is legally binding, which means creditors are prohibited from trying to get in contact with you through any means. Instead, they must deal with us, and your personal adviser can outline everything for you in a clear and considerate manner. Creditors will also be unable to take any court or legal action against you.
To qualify for a DAS, you have to:
- Live in Scotland
- Have a relatively stable and regular income
- Owe a sum to a creditor which you can realistically settle given time.
If you think you could benefit from a DAS or are facing other debts which might require some other form of solution, get in touch with us today. We will be happy to answer any and all of your questions, and it will cost you absolutely nothing.