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
#63091 I have got myself into a mess and would appreciate some advice on the following

I currently have unsecured debts of approx 25K. I have no assets, the house is in my wife's name and this has always been the case. Spoke to an I.P who advised, that due to my current I & E, a trust deed was not suitable due to insufficient excess funds each month. I was advised to hold tight and wait for a creditor to take action against me. I have made no payments for over 5 months and apart from having 2 default notices issued have had no further action taken.

1 My main creditors are HBOS 12K & Monument 7K can anyone advice how long it would take for them to take further action that would allow me to apply for sequestration?

2 If applying for sequestration would my wife's income be taken into account, or would it only be mine as all debts are in my name?

3 If sequestrated would it affect my wife?

4 How long is sequestration noted on CA agency details, would I ever be able to obtain low level credit ie mobile?

5 I pay into company pension scheme, would this be taken into account when applying for sequestration or would I be expected to withdraw from scheme?

Sorry for the length of message but any advice would be greatly apreciated.


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By Less
#63094 Hi there,

I'm sorry but you'll need to hang on for one of the Scottish experts, as the laws are totally different. I doubt if anyone will be around now, but I'm sure if you check back tomorrow, someone will be able to assist you.
By daviebicky
#63782 who advised you about not taking out a trust deed? around 100 per month should be ok for a trust deed
By JLP
#64587
daviebicky wrote:who advised you about not taking out a trust deed? around 100 per month should be ok for a trust deed


Not all Ip's will do Trust Deeds for £100 a month now-however I can pm some that still do, if thats your chosen option.

But to answer your question.

1. Dont know how long it will take a creditor to take action against you-am afraid it like how long is a piece of string.Monument are unlikely to take you to Court (credit card companies hardly do up here). HBOS are the most likely. Bankruptcy laws are changing in Scotland (expected now 2007) when you may be able to go Bankrupt on a Summary Warrant for Council Tax), but will assume that your Council Tax is joint with your wife, so that may not help you, as she will be left with the debt completely. And depending what Council Area you are living in, they may go for the house with the new Land Attachment, so this wont help you much.

2. Ony your Income will be taken into account, but it will be assumed that your wife can contribute to household bills.

3. Depends if you have anything at all in joint names.If you dont, your Bankruptcy shouldnt show up in your wife's CRF file.

4. Sequestration will stay on your file for 6 years. You willnot be able to obtain credit during the (current) 3 years that you are Bankrupt.The law at the moment states that you can have up to £250 credit and anything over that, you must tell a Credit provider that you are an undischarged bankrupt.However you will be unlikely to obtain credit anyway.Whats wrong with PAYG.

5. Depends on terms of your company pension scheme, if its only to get a pension when you reire, it should be ok, but there are some with profits ones.Doubt they will get you to withdraw.

YOu say you have spoken to an IP-have you spoken to a Money Advisor and looked at all your range of options.Bankruptcy is a BIG step.

Look on http://www.moneyadvicescotland.co.uk for a money advisor in your area.