Personal Debt Legal Advice
Raseide Chisholm can offer you a wide range of options to ‘remedy’ your personal debt problem. Our expert personal debt advice lawyers can find a solution that is suited to you.
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Personal Debt Advice Lawyers City Centre Glasgow
There are several options available to you if you need to pay a personal debt in Scotland, whether you have the funds to pay it or not. It is important to bear in mind that Scottish debt legislation is different to the rest of the UK’s, therefore so are some of the solutions.
Trust Deed
A trust deed is a legally binding agreement between you and your creditors (the person(s) you owe money to). If your trust deed becomes protected (a protected trust deed) your creditors will not be able to make you bankrupt or take further action against you.
In order to qualify this you must meet minimum criteria. In order to use a protected trust deed you must:
- Be Scottish resident
- Have a debt of £10,000 or more
- Be able to contribute at least £150 a month towards paying off your debt
With a protected trust deed you pay off your debt each month over a period of about three years. With this remedy you may keep your house and at the end any debt left over can be cleared.
Debt Arrangement Scheme (DAS)
The DAS was set up for people who need help managing their debts by the Scottish Government. A Dept Payment Programme (DPP) may also be arranged under the DAS, although you cannot apply for this directly.
Sequestration (Bankruptcy)
Sequestration is the Scottish term for ‘bankruptcy’.
One of your creditors can make you bankrupt, or you can petition your own sequestration under a Certificate of Sequestration or LILA (see below).
Although it is possible that you will lose your house or other property (yet there are certain safeguards in place to protect your family if this occurred), there are benefits to sequestration. This remedy removes the pressure from you to repay your debt, and you are allowed to keep some things, for example household goods.
Low Income Low Asset (LILA)
A LILA is a form of debt relief in Scotland that may be used by those who cannot afford bankruptcy, or to pay off their debt. It is another route to sequestration, which has minimum criteria that need to be met, one of which, notably being that you must have an income of £237.20 or less (based on a 40 hour week)
Asking to write off your debt
Your creditors may agree to write off your debt, or even stop action if you have no money to pay it. However, this only tends to happen in exceptional circumstances
One remedy alone may not suffice; depending on your debt a mix or balance of options may be more suitable. It is advisable to seek legal advice so that your debts are paid off efficiently, and in a manner which suits you best.
Contact our Personal Debt Advice Lawyer in Glasgow, David Doig
To find out how we can help you, or to arrange an initial consultation with one of the best personal debt lawyers in Glasgow, please complete our online enquiry form here or contact us on 0141 673 1538.
