Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By b gray
#40142 Spoke to insolvancy practioner regarding a Trust Deed, thought that this may have been the answer to my problems. Have been advised that I would not be suitable for a trust deed as the amount that I could afford to pay each month would only be £120/150 per month. Debts currently 25K.

I have been advised to stop paying all cards and wait until one of them sequestrate me. Does anyone know how long this would take to happen?

Another question re insolvancy practioners, was informed that their fee would be approx £3000. Does anybody know if this is about average? With this level of fee all creditors would only get 10p in £ :? Worried that with this low amount more chance of an objection
By JLP
#40176 Where did you get the IP that you spoke with? Was it recommended by someone or through a money advisor.I am surprised, because at a level of £100-£125 per month, I have never known an IP to say that.........

And are they asking you for upfront fees of £3k , because they shouldnt. I can make some enquiries first before you settle on the Bankrupcy route.

In Scotland you can only file for your own sequestration if somone takes you to court gets a decree, and then serves you a "Charge for Payment of Money", a "Statutory Demand" or a "Failed Attachment Schedule" ( which is where Sheriff Officers have tried to attach goods-usually for Council Tax and have been unable to do so). Many creditors threaten Court Action but dont seem to carry it off quick enough (for Scottish debtors liking). I have had cases waiting for 2 and 3 years with clients waiting for Bankruptcy.Meanwhile the debt just sits there until it ends up being Statute barred. There are moves for people to file for Bankrupcy under he Summary Warrant scheme (non payment of Council Tax)-doubt we will see that till 2007 at earliest
By b gray
#40321 The IP was recommended to me.

They were not looking for any fees upfront. I was advised that as I could only afford £120/150 that by the times the fees were taken off the amount that the creditors would receive would be very low and that they were unlikely to accept. As a result i was advised to stop paying the cards and wait for somebody to take action to make me bankrupt.
Do you know if the majority of creditors would accept 10p in the £?

You mentioned that companies sometimes don't take action and the debt ends up being barred. How long does this take and what are the chances of no action being taken, is there a certain level over which all companies will take action?
By GR
#40393 I think you've had some duff gen from your IP. Either that or he's being greedy. My wife and I had debts of £38K and we paid £180 a month - £90 each.

I'd suggest you try another IP.