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 BossRat
#57267 Over a year ago I realised what a mess with money I had got myself into and talked to several different debt advisers and an insolvency practitioner. They all agreed I had no other choice but to declare myself bankrupt. They warned me it might take a while but 14 months on and I feel like I've made no progress at all.

My background is that I used to be a medical student, took out a huge amount of student debt (professional trainee loans), got manic depression and am now not working and been sick for three years with no prospect of going back to work any time soon. I have a particularly nasty form of manic depression called rapid cycling which makes it harder to treat and makes me pretty unstable at times. This time last year I owed £31.2k (including student loans company loans) but it's now over £35k with all the charges.

I was advised not to pay anything and try my hardest to look like I could pay but won't. I haven't communicated with my creditors and they don't know I'm on benefits. I have defaults from my two main creditors but no decrees. I'm at the end of my tether. I don't know what to do as I see no end in sight. The letters from my creditors have dried up quite a bit as I heard nothing from October until March, when I got two letters, and have had no phone calls for months.

I've been trying to read up on the new Bankruptcy and Diligence (Scotland) Bill that is going through the Scottish Executive. Will that help me? Does it allow people like me (without a charge for payment) to petition for their own bankruptcy? Will it mean that I couldn't include my student loans company loans in my bankruptcy?

Sorry for all the questions. The debt advisor that I have spoken to recently can't answer my questions and says I need to see a specialist but I can't get an appointment with a specialist debt advisor where I live as far as I can find out. If there is anyone I can phone please could you give me their details.

Thank you in advance,
BossRat.
By JLP
#57409 Hiya Bossrat

Its really hard at the moment trying to get that elusive Charge for Payment........... :( .Creditors are less willing to take people to Court up here. The advice you have been given by various Debt Advisors is spot on, unfortunately the worst thing is waiting for someone to take you to Court. I am a bit confused though what the Debt Advisor means by seeing a "specialist" Debt Advisor........ :? I suppose he/she means someone who is Accredited but Accredited advisors dont know all the implications of the new Bankruptcy laws till they come into force, any more than anyone else does yet.

Anyway to answer your question-yes the new laws should help you, as you then do not need a Charge for Payment.You can file for your own Bankruptcy by using a Summary Warrant-that you will be issued for non payment of Council Tax. This will be ideal for someone who has been waiting a while.

We do not know at this stage whether Student Loans can be included in your Bankruptcy when the new laws come in-my feeling is that this will be unlikely. However as you are not working, they cannot collect from you unless your Income is above £15k (I think, thats the correct fig) , so I would keep deferring your loan every year.

I know the stress can get a bit much-there are loads of people in the same position as you, waiting for the laws to Change. I can see the AIB issuing statements that Scottish Bankruptcies will be at record levels, this will be because Debt Advisors and clients will be tottling off to their local Sheriff Court with all their paper work.......... :D in a oner.

We reckon the laws will probably be in force towards the end of the year.I would keep checking the Scottish Exec website every month for an update. If I find anything concrete Ill post back.