If you are looking for finance it's understandable to have questions, so we've put together some answers to common questions you might be looking for.
A Trust Deed is a legally binding document which transfers your debts and any assets you own over to an Insolvency Practitioner, who will act as your Trustee. You will make one affordable payment each month for a period of 48 months. Once complete, your creditors will receive a dividend and the remaining debt will be written off. Interest and charges are frozen and creditors are unable to any action against you.
Sequestration is the Scottish term for Bankruptcy. It works similar to a Trust Deed however Sequestration in awarded by the Government and costs �200 and a Trust Deed is signed by you and there is no fee. As with a Trust deed, you will make an affordable monthly payment each month for 48 month and thereafter, any remaining debt is written off. Interest and charges are frozen and creditors are unable to take legal action against you.
DAS stands for the Debt Arrangement Scheme and is a debt repayment programme. As with the Trust Deed and Sequestration, interest and charges are frozen and you are protected from creditor diligence. As DAS is not a form of insolvency, you will make your affordable monthly payment each month until all debts have been repaid in full. The maximum term of a DAS is usually 10 years.
Each plan has its pros and cons. If you do not property or have little or no equity in any property you do own and can pay back at least 10p in the � then a Trust Deed may be your best option. If you do not have property or have very little equity and cannot pay back at least 10p in the � to your debts, then Sequestration would be your best option. If you own your own home with considerable equity in it, or you can pay back your debts in full in less than 4 years (based on your disposable income) then DAS would be your best option. A qualified debt advisor will advise you on the plans available, based on your current circumstances to allow you to make an informed choice.
f you have �6000 of debt or more, we can help. If you have under �6,000 of debt then we can direct you to your nearest CAB and Stepchange Debt Charity.
If you are able to prove your income via a Tax Return or via bank statements then yes, you can still apply.
As long as you have been discharged from your previous Trust Deed and your Trustee has also been discharged from office, there is no reason why you can't apply again.
Equity in a property you own or part own, a vehicle which is owned outright and is worth over �3,000, any insurance policies which have a current surrender value, stocks, shares, bonds, savings certificates are all assets which would be taken into account.
A charge for payment is a court document which will be hand delivered by Sheriff Officers. Creditors usually issue these if they intend to take further action. A charge for payment expires after 14 days. Once expired, a creditor can take further action if no payment is received.
A Warrant to Cite is court document delivered by Sheriff Officers which informs you that there will be a court hearing on a certain date. At this hearing, the creditor who issued it will push for your Sequestration. If you do not appoint a solicitor to attend of your behalf or you simply do not turn up, Sequestration will most likely be awarded.
AiB stands for the Accountant in Bankruptcy. They are a Government body who oversee all insolvencies in Scotland. They audit Trustees fees in Sequestration cases, act as Trustee in certain low level Sequestrations and act as the DAS Administrator in all DAS cases.
MAP stands for Minimal Asset Process and is the name given to a type of Sequestration, which only lasts 6 months.
To qualify for the Minimal Asset Process, you must not be able to afford to make a payment towards your debts or be on benefits only and not own any property or any asset worth more than �1000. You must also not own assets which collectively be worth more than �2000. You must also not have debts of over �17,000.
If you qualify for MAP then it costs �90 and is payable to the Accountant in Bankruptcy before they will award your Sequestration. If you do not qualify for MAP, it will cost you �200, again payable to the Accountant in Bankruptcy.
A moratorium protects your from creditors taking legal action against you for a period of 6 weeks from the date it is submitted. It does not however stop legal action which is already happening.
You should check with your HR department if you have any concerns surrounding signing a Trust Deed.
Bailiffs operate in England, in Scotland we have Sheriff Officers who are very different to Bailiffs.
We'll need to gather a fact find which includes your income, expenditure, assets and debts. We will need to verify your income and expenditure and will need 3 months bank statements and 3 months wage slips to progress.
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