Low Income Low Asset (LILA) - Scottish Debt Solution |Low Income Low Asset | Insolvency Debt Solution -
UK Wide Debt Advice Charity
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E-mail: contact@debtsupporttrust.org.uk


Updated 1st April 2015: The Low Income Low Asset route to bankruptcy is no longer applicable and has been replaced with the Minimal Asset Process (MAP).


Low Income Low Asset (LILA) is a route into Sequestration (Bankruptcy). This was launched back in April 2008 for people who have a low income and low / no assets. This solution is only available to people residing in Scotland.

The equivalent scheme for England, Wales and Northern Ireland is called Debt Relief Order (DRO).


The criteria to enter Sequestration via the LILA route is;

- Your income must be less than £247.60 based on a 40 hour week

- If you are on income support, income based jobseekers allowance or receiving working tax credits then you would have met the low income test. This will apply even if you are earning more than £247.60

- You must be unable to meet your current repayments and charges

- You cannot own property or land

- The cost for LILA is £200 and is payable to the Accountant in Bankruptcy.

- If you get any monetary windfalls or inherit any property or land you would need to let your trustee know as this may need to be paid to your sequestration

- You cannot start up or be involved in the day to day running of a limited company

- You are unable to act as a Member of Parliament. Other restrictions include not being a member of a local council or on a school board etc

- It will be difficult for you to obtain credit after you being discharged


Debt features about credit card debt, store card debt and debt & divorce can be found on our debt advice page. Alternatively further information can be found about debt advice in Scotland here.