Do you know what other debt consolidation help, advice or solutions are available to clear personal debts in Scotland UK, apart from a Protected Trust Deed?

  • Are you Scottish and wondering how you can clear personal debts without utilising a Trust Deed?
  • Have you taken any trusted and professional debt consolidation help or advice yet?
  • Confused by certain options you are being told are available to clear debts in Scotland?

When we are contacted by Scottish residents, the most important part of the advice we can offer is that debt help, advice and solutions available in Scotland differ to those available throughout the rest of the UK.

Debt Solution Finder

People across the UK are being called daily by companies that claim to have all sorts of magical ways to wipe out personal debt problems for consumers.

free credit report UK from ExperianThere is plenty of free debt advice in Scotland available from the National DebtLine Scotland.

  • The main Scottish debt solutions available are as follows;

Protected Trust Deeds – (Scottish equivalent to the English IVA or Individual Voluntary Arrangement)

A Trust Deed in Scotland will usually take about 3-5 years to complete. You are asked to pay one monthly payment for that period and after such time any remaining debt is usually written off by the creditors.  All interest and charges are stopped during this period and creditors would usually contact the Trustee / Insolvency Practitioner who is managing the case and not you the client directly. This is a voluntary agreement but is formal and legally binding. Trust Deeds in Scotland differ as some are protected and some are not. It all depends on the quality of who is managing the case for you. A Trust Deed in Scotland becomes protected as long as;

  • No more than half of your creditors object to your Trust Deed!
  • No more than one third of creditors in debt value object to your Trust Deed!

Creditors cannot pertition you for Bankruptcy once your Trust Deed is Protected!

A Trust Deed will be recorded on an individuals credit record and it would be expected that you do not apply for further credit whilst the Trust Deed is in place. It may take some time for your credit rating to repair once the Trust Deed is over. If you own a property, you may be expected to release any available equity from that property whilst the Trust Deed is in place to make a greater contribution to the overall repayment the creditors would receive. There is no court hearing or need to appear in court when setting up a Protected Trust Deed in Scotland. Find more information about how Trust Deed Fees work.

Sequestration – (Bankruptcy in Scotland)

This is conducted through the Sheriffs Court, your creditors can either pertition for your Bankruptcy or you can apply directly for voluntary Sequestration / Bankruptcy. During the Sequestration process all of your assets or savings including cars and homes are passed to the Trustee or Insolvency Practitioner as part of the arrangement and remain under Trustee control. They are allowed to be sold to make the contribution back to your creditors larger. If you cannot afford to repay your debts in a reasonable amount of time, you may be expected to pay a monthly amount to your Trustee for up to 3 years. If you cannot afford to make a monthly repayment due to a negative disposable income, you will not repay monthly and the period of Sequestration would usually last for 12 months at which point you would become debt free and debt remaining would be written off by the Sequestration process.

  • You cannot borrow more than £500 whilst in Sequestration.
  • Your employment could be affected so you should check with your employer first.
  • Your credit rating will be affected.
  • If you are self employed you may not be able to continue trading.
  • Members of Parliament, Schools, Councils and company Directors will not be able to continue these practices whilst in Sequestration.
  • Windfalls and inheritance will be taken into account should you be so fortunate whilst Bankrupt in Scotland.

DAS / Debt Arrangement Scheme – (Only available in Scotland)

The Debt Arrangement Scheme is a relatively new personal debt solution for Scottish residents to clear personal debts. It is a Scottish government approved and run Debt Payment Programme.

Debt Arrangement Schemes allow you protection from your creditors from legal action and allows you to repay at a rate that you can afford. All interest and charges on your debts are frozen if the DAS / Debt Arrangement Scheme is approved. A Debt Arrangement Scheme can last for a reasonable amount of time and if you are a Scottish resident and have one debt or more that you are in difficulty with, you may qualify for a Debt Payment Programme. You must be able to contribute an amount monthly that you can afford to repay.

If you fail to pay for 2 months or more, your Debt payment Programme can be ended and you can become liable for all the interest and charges that were previously frozen.

Debt Management Plan – (Also available in England, Northern Ireland and Wales)

A debt management plan is an informal arrangement between you and your creditors to repay what you owe. Not legally binding but conditions do apply and credit ratings can be affected.  Usually offers one monthly payment. The company you chose to conduct your debt management plan can often make the difference to the plan being successful or not. Read further about debt management online.

  • Please remember that you have to be committed to any personal debt solution for it to work and if not, the debt simply will not clear itself!

For UK debt advice and consolidation help regarding personal debt solutions available to clear debts in Scotland, please contact our Lewis Alexander personal debt helpline in confidence.

Call 0800 018 6868 Free today

Lines are open 24 hours / 7 days

Calls are usually FREE from a UK land line

From mobiles it may be less expensive to call 0161 872 3383

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Debt Help and Advice in Scotland

On November 27, 2009, in News, by Lewis Alexander
  • Do you live in Scotland?
  • Are you in need of Personal Debt Help and Advice?
  • Is the difference bewteen debt assistance in Scotland and England confusing you?

For most people that live in Scotland, the differences between debt solutions that are available in England compared to those in Scotland can be some what confusing to say the least.  If you have previously taken advice from debt agencies and are still struggling to understand the various options available to clear your debts as a Scottish resident, please read this blog post further as we believe this will help you.

  • Trust Deed

Most people are now familiar with the term IVA (Individual Voluntary Arrangement), for those that are not, it is a legal agreement between you and your creditors in England ONLY, and is a form of Insolvency that allows you to pay back an amount of the money you owe within a set or fixed period of time, usually 60 months or 5 years.  The remainder of what you owe that has not been repaid is then written off by your creditors leaving you debt free.

  • The Trust Deed, is very simply the Scottish alternative to the IVA in England.  The difference is that in Scotland, the Trust Deed lasts for 36 months, not 60 months like an IVA in England.

Creditors are not duty bound to agree to Trust Deeds as they do need to make sure that they are obtaining a satisfactory percentage of the total debt to be repaid.  This is not always possible when the clients circumstances are investigated as the client sometimes does not have enough disposable income (the money left over after essential bills and living costs) each month to meet the financial repayments, in this case the client can then consider a debt management plan or Bankruptcy.

  • YOU SHOULD NOT APPLY FOR ANY FURTHER CREDIT ONCE ACCEPTED ONTO A TRUST DEED!

A Trustee will manage your Protected Trust Deed for you and Trust Deeds can only become protected if certain requirements are met by the individual, if the Trust Deed becomes protected, your creditors cannot take legal action against you and the interest or charges on your personal debt will become frozen.

You will NOT be charged to enter a Trust Deed arrangement, your creditors are responsible for paying your Trustee out of the contributions you make whilst the agreement is in place.

  • Bankruptcy in Scotland is sometimes referred to by some as Sequestration

Sequestration involves removing or seizing a persons belongings or assets, to a value of the debt owed with a view to being of financial benefit to the creditor owed the money or in some cases this can be for monies owed to the Scottish state.

Laws in Scotland that appertain to personal debt and finance agreements can vary based on what type of agreement you have signed and with which company or lender.  For an exact definition of different legal agreements, you should without question consider speaking with a Scottish Insolvency Practitioner or solicitor.

The above is a very basic explanation designed to give you a brief outline of the differences between, debt help in Scotland and that to the rest of the UK.  For a more detailed explanation you can contact our personal debt helpline which is open 24 hours a day.

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Clear debts without loans

On November 4, 2009, in News, by Lewis Alexander

If you are trying to clear personal debts in the UK and have found that when applying for loans or credit you have been refused, there are options available to you that enable you to clear debts without another loan. The 3 best known debt solutions are listed below,

Clear debt without a loan

Clear debt without a loan

  • Debt Management Plan
  • IVA or Trust Deed in Scotland
  • Bankruptcy

Lewis Alexander is a specialist debt management company, we help people clear debts without loans, we also offer a free from a landline debt helpline to UK residents struggling with personal financial problems.  The advice we give is based on individual personal circumstances and is often not what the person (possibly you) wants to hear.

This is where debt counselling comes in, we have a proven method of helping those that wish to be helped.  Often in life, the truth is the hardest to accept, usually with any personal financial problem, there is an element of truth that needs accepting before the individual can move ahead.  That is the hard part to get over and after what we call the acceptance period, the individual feels so much relief from the stress of the debt problem that they really can continue with a normal daily life just like they experienced before being in debt.

If you are suffering with financial problems such as mortgage arrears, missed or late payments on credit agreements etc, you must deal with the situation as soon as possible, in the time it has taken to read this article so far, you could have dialed our free from a landline debt helpline using 0800 018 6868.

Our advisors will help you to make a fresh start financially and offer you tested and proven methods that you can employ to combat the pressure from debt collection agents or lenders that may be chasing you.  Letters and phone calls are the most worrying to people along with the threats of court action.  There are laws that appertain directly to debt collectors and the procedures of collection that they undertake, more importantly, the Office of Fair Trading sets out debt collection guidance that the collection industry is expected to adhere to, just the same as the debt management guidance set out for debt agencies and not for profit debt charities.

For further advice and help on how to clear debts without loans, contact our personal debt helpline today, lines are open 24 hours a day/ 7 days a week and your call is usually FREE from a landline.

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