In Scotland there are different debt solutions for people to enter compared to the rest of the UK. This is because Scotland is Governed by separate laws. The debt solutions are different. Before you enter a debt solution you should consider speaking to a debt advice charity for help. I recommend Debt Support Trust for telephone and internet based help. They provide excellent independent support and as a debt help charity they are one of the best debt advice Scotland providers.
I’ve listed some of the debt solutions which are available for people living in Scotland and in debt.
Debt Arrangement Scheme: This is a formal debt solution where you agree to repay your debt over a sensible period of time and at an affordable level. Your house is protected (as long as you continue to make the mortgage payments) and your creditors can’t take action against you. The full debt will be repaid but the interest and charges will be frozen.
Protected Trust Deed: The Trust Deed lasts usually for 3 years and all interest and charges are frozen. If after 3 years you’ve not repaid the debt, the remaining debt along with the interest and charges, will be written off. This is a solution for people who owe over £10,000 and have less equity in their property than unsecured debt (debt on credit cards etc).
Bankruptcy: There are various routes to enter bankruptcy in Scotland, including the LILA and Certificate of Sequestration. The cost to enter the solutions is £200 but you may also be asked to pay money towards your bankruptcy for 3 years.
Before you enter any debt solution, get free debt advice from a registered charity. It takes 20 minutes and you can ask them anything. I’m not a debt advisor or debt expert, so my knowledge should be taken with “a pinch of salt” but I would definitely recommend a charity. If you want face to face advice, the Citizens Advice Bureau is excellent and for telephone help, Debt Support Trust is available on 0800 085 0226.
It’s 20 minutes worth spending. Debt advisors don’t judge, they only support.