It is uncommon for a company to offer advice to Scotland as well ad England and Wales but we have a qualified and dedicated team who can provide expert debt advice for Scotland as well as England and Wales. We understand the differences in the law and can advise the best possible route for you based on your personal circumstances.
LILA
LILA is a similar to the Debt Relief Order which came into force in England & Wales in April 2008. In a nutshell it is a new route to bankruptcy for people who have a low income and negligible assets and reside in Scotland.
LILA is a solution for people who are unable to clear their debt because they are unable to repay their debt within a sensible timescale this being because they are on a minimal income and have no assets.
LILA is granted by the Accountant in Bankruptcy if you meet the strict criteria. The current cost to apply for bankruptcy via LILA is £100.
The current determining criteria for LILA is:-
- Earning less than £229.50 per week for 40 hours (if you receive income support, job-seekers allowance, working tax-credits then you will be treated as meeting the low income text even if your weekly income is more than £229.50)
- Do not own one single asset worth more than £1,000 and total assets worth no more than £10,000
- Not able to meet your current repayments and charges
- Have debts over £1,500
As with everything relating to debt there are pros and cons - every one's situation is different. If you would like to find out more about LILA then please do not hesitate to get in touch.
Protected Trust Deed
A Protected Trust Deed is similar to an Individual Voluntary Arrangement (IVA) in England & Wales. Unlike many other financial solutions it offers flexibility, affordability and protection from creditors.
If you enter into a Protected Trust Deed, you make one affordable monthly payment to an Insolvency Practitioner (IP); they then distribute this to the creditors. the IP also deals with the sale of any significant assets that you may have and again this would be distributed to your creditors.
Some of the advantages of a Protected Trust Deed Include:-
- Interest and penalty charges will be frozen
- Repayment is set at what you can reasonably afforded and this is all you will pay
- All correspondence and queries from your creditors will be dealt with by your Trustee (IP)
- All pressure from your creditors will stop
- After completing a protected Trust Deed (normally 3 years), you will be ready to start afresh financially
If you would like discuss Protected Trust Deeds then please do not hesitate to contact our experienced and knowledgeable staff.
Sequestration
Sequestration is known as "bankruptcy" in England & Wales.
It is imperative that prior to Sequestration you seek advice; sometimes another option may be better suited to your situation such as LILA or Protected Trust Deed.
The key advantages of Sequestration are:-
- Income and benefits will be your to keep
- Your creditors will no longer be able to pursue you or take action against you to recover what you owe
- You will not have to make further payments to your creditors BUT you will have to pay any surplus income to your Trustee
- You can Expert to be discharged after 3 years
With everything there are disadvantages. The disadvantages of Sequestration are:-
- If you acquire any money (wages and pension proceeds excluded) or property after the dates of your Sequestration and before the date of your discharge, you may have to surrender these to you Trustee.
- If you are in paid employment, you may have to make a regular contribution to more than one year.
- If you own any valuable assets (including endowment polices) these will have to be sold.
- It is deemed unlawful to incur credit of more than £500 whilst Sequestrated unless the lender is aware that you are an undischarged bankrupt.
- You are not allowed to start up or be in voled in the day-to-day management of a Limited company.
- You are not allowed to act as a member of Parliament and there are certain other restrictions, such as acting as a member of any school board or local council etc.
- Sequestration will be advertised in the Edinburgh Gazette and may be noted by credit referencing agencies.
- You may have difficulties in obtaining credit after your discharge.
Every one's individual situation differs and so does our advice. With a few simple questions we will be able to advise you on the best option to suit you.
If you would like to discuss Sequestration please do not hesitate to contact us.
Debt Management Plan
A Debt Management Plan is the same in Scotland as it is in England & Wales. It should be viewed as a short-term debt solution and is an informal arrangement with your creditors.
It is an ideal solution for someone who needs to reduce their monthly repayments in order to get their finances back on track. The Debt Management Process begins by assessing your income and expenditure - once this has been done it the becomes clear how much money you have "spare" each month to pay your creditors.
We then negotiate on your behalf with your creditors to accept a lower monthly payment. Once this has been done you pay your monthly payment to us and we then distribute it to your creditors on your behalf.
The advantages of a Debt Management Plan are:-
- Relives creditor pressure
- We manage your monthly payment therefore you pay one simple, affordable payment
- In many cases your interest can be frozen or reduced
- There are no penalties for cancelling the plan at anytime
If you feel that you would benefit from a Debt Management Plan or would like to discuss your options then please do not hesitate to contact us.
