Debt Advice Scotland
Debt Advice in Scotland has grown since the recession began in
2008 and because of different laws with the rest of the UK,
Scotland has its own debt solutions. These are;
A protected trust deed also known as a trust deed for short is a
Scottish debt solution which is similar to an IVA in England, Wales
and Northern Ireland. Click for more information on a Trust Deed in
Scotland.
A protected trust deed enables you to repay what you can afford
each month. It's usually a 3 year debt solution where you will be
able to keep your house (although you may have to release the
equity from the property) and any remaining debt (along with the
interest and charges) will be cleared at the end. The proposal
will
To meet the criteria for a Protected Trust Deed you should
- Live in Scotland
- Have debt of at least £10,000
- Be able to contribute money towards your debt every month
Sequestration is the Scottish form of bankruptcy.
A LILA is the Scottish form of a debt relief order and has been
introduced in order to help people who cannot afford to pay their
debt but also can't afford bankruptcy.
If you are not suitable for the LILA (for example you earn too
much money each week) then the Certificate of Sequestration may be
the most suitable route. By clicking the link above you can read
about a Certificate of Sequestration.
The Debt Arrangement Scheme is a legally binding agreement where
you repay all of the money you borrowed, similar to a debt
management plan, however this solution can protect your house in
Scotland.
Scottish Debt Statistics
Through our own research Debt Support Trust has found that the
average person in Scotland has £20,000 of debt.
We have also found the worst areas for
protected trust deeds for 2010 and 2011. This largest amount of
protected trust deeds per region was in Inverkeithing.
The highest region unemployment change between 2007 until 2010
was North Ayrshire as shown below.
While debt and unemployment in Scotland is high they are both
lower than the average across England and Wales.
Unemployment from 2004 to 2011 are shown in the table below
From the table above we can see Scotland has the second lowest
percentage of people unemployed across the uk and is currently
lower than the UK average.
Debt & Unemployment
The number of people entering a protected trust deed in Scotland
has increased 51% compared to the same quarter last year which
could be related to unemployment falling across Scotland.
In order to enter a protected trust deed in Scotland a person
must be in employment. As a result, some people who may have been
suitable for sequestration may prefer the trust deed Scotland if
they have a job. For more advice and the legal information with a
trust deed Scotland please click the link: Trust Deed
Scotland.
Read about the available debt solutions on our debt help
page.
Scottish Debt Advice
There may be a number of suitable debt solutions for somebody
living in Scotland and struggling to manage their unsecured debt
problem. The laws between Scotland and the rest of the UK are
different so it can sometimes help to speak to a Scottish debt
advice expert, such as Debt Support Trust.
Our friendly advisory team can help you determine what debt
solutions would be most applicable then support you in entering
your chosen solution. At Debt Support Trust our role is to provide
you with accurate debt advice, providing you with the pros and cons
to each scottish debt solution which will help you make an informed
decision on your debt problem.
To contact a charity representative at Debt Support Trust please
telephone 0800 085 0226.