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UK Wide Debt Advice Charity
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E-mail: contact@debtsupporttrust.org.uk

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Bankruptcy Scotland

Get help from a debt advice charity who understands if Bankruptcy in Scotland is your best advice.

Bankruptcy in Scotland is not necessarily the best debt option for everybody. That's why it's important to seek help from a debt advice professional who has the knowledge to explain every appropriate debt solution to you. This way you can make an informed decision about your debt problem without judgement or any sales techniques.

There are lots of ways Scottish people can go bankrupt and the right one for you will depend on your personal and financial situation. We can explain the cost of bankruptcy, the pros and cons, the process and what it will mean to things like your house or other assets.

Get Bankruptcy Scotland Help Now

If you want immediate debt help and think bankruptcy is the right solution for you then don't put it off any longer. Speak to a qualified debt advisor today on 0800 085 0226.

Alternatively, complete our online debt analyser to see if bankruptcy Scotland is the best advice for you. All of our advice is free, confidential and we never pressure you into a decision. We're here to help.

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Benefits of Bankruptcy in Scotland

There are benefits of entering bankruptcy in Scotland, including:

  • You will no longer be asked to repay the debt you cannot afford. This means the debt you cannot afford will be written off.
  • You will no longer have to liaise directly with your creditors as an insolvency practitioner will be doing this for you.
  • You can start again financially after your bankruptcy is finished.

Negatives of Bankruptcy in Scotland

There are some negatives to bankruptcy in Scotland which are essential to mention. Bankruptcy in Scotland is not always as straight forward as writing off all of your debt. In some instances it can mean:

  • If you have a house or car with equity then this may need to be realised for your creditors and that could be via selling the assets. There are thresholds for how much equity there needs to be so if you give our advisors a call they can explain in full.
  • If you are working and can afford to pay something towards your bankruptcy every month then you may be asked to do so for three years. Again, there are thresholds which could exempt you and our advisors could guide you on this.
  • You will have to pay to go bankrupt in Scotland. The cost of bankruptcy is £200 in order to process your application. This fee is paid to the Accountant in Bankruptcy who processes and monitors all insolvency solutions in Scotland.
  • Your credit rating will be affected for a minimum of 6 years.

Advice on Bankruptcy in Scotland

Get free advice and support on bankruptcy in Scotland from a registered debt advice charity. Debt Support Trust is a registered and qualified debt advice charity helping thousands of people every year with their debt problems.

Not everybody is suitable for Bankruptcy or there may be other debt solutions which you can apply for.

At Debt Support Trust our friendly advice team discuss all of the options with you and explain the pros and cons of the debt solutions. We are open from 8am - 7pm Monday to Friday, however, you can also complete a confidential debt analyser test online to check if bankruptcy Scotland is the best advice.

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Monday, October 01, 2012
Debt Support Trust
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Households Struggle to Repay Mortgages

There is an increasing number of customers struggling to repay their mortgages, according to the state-owned lender which took on Northern Rocks most toxic loans. They are setting out plans to help people who are struggling with the debt.

The UK is in the worst recession it has seen for more than half a century. UK Assets Resolution said in the first half of 2012 they had to change 34,000 mortgages to help their customers be able to repay.

The rising cost of living and the continued fall in house prices are continuing to affect people. The bank is warning the number of people struggling will continue to increase.

At the start of 2011 the government split Northern Rock in two, one part was sold to Virgin Money, which formed Northern Rock plc this was known as the 'good bank'. The other formed Northern Rock Asset Management (NRAM) this is known as the 'Rock bad bank'.

This was then paired with the other bailed-out lender Bradford & Bingley and UKAR was formed, they have 655,000 customers.

In the first half of 2012 repossession on homes fell by 15 per cent to 3,871, though there were 34,000 changes to mortgage arrangements and account changes to help customers to be able to make their repayments.

Richard Banks chief executive for UKAR said: 'Much of our focus is on helping those of our customers who are in financial difficulty and it is pleasing to see a further significant reduction in arrears levels despite the continued economic certainty and pressure on consumers' finances.'

Though they said around 10 per cent of their customers were struggling to keep up their repayments, the actual amount having three or more month's arrears dropped by 9 per cent, to 30,222 and the total amount of arrears fell by 8 per cent to £215.1 million.

Amid the credit crisis in 2008 Northern Rock was nationalised, this began the first run on a UK bank for 150 years.

Later that year Bradford & Bingley was also taken over by the government, the savings side of the business was sold to Spanish owned Santander.

In the first six months of the year UKAR reported a 6 per cent rise in pre-tax profits at NRAM which was £415.1 million.

In comparison to Bradford & Bingley who after making an additional interest payment to the Government, reported a 66 per cent slide in profits to £66.3 million.

Bradford & Bingley repaid a further £700 million to the Government loan, thus reducing its bill to £26.2 billion. NRAM returned £88 million leaving there bill at £19.6billion.

With sites in the North East and Yorkshire UKAR employs 2,500 staff.

Tuesday, July 31, 2012
Debt Support Trust
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Shock Recession for Britain

In the second quarter the UK economy has taken a shocking downward turn. Britain has plunged into it worse ever double dip recession, as the economy has shrunk by a huge 0.7 per cent. Official figures released today shows.

According to the Office for National Statistics the economic output had been expected to fall by 0.2 per cent. However it was far more severe between April and June due to the disastrous slump in construction.

Poor Growth Figures

Before today's gross domestic product data was revealed the UK had already been in recession, as this was the third quarter of negative growth. The first quarter it had fallen 0.3 per cent followed by 0.4 per cent.

Five quarters of negative growth were recorded in the last recession 2008-2009, before turning positive again. However the economy has not made up for the ground lost at this time. This is why the current recession is described as double dip.

The fall confirmed today is the largest since the depths of the financial crisis in the first quarter of 2009.

It was caused by falls in certain areas of the economy, though the main cause was construction which decreased by a frightening 5.2 per cent in the quarter. The services sector fell by 0.1 per cent and production industries fell by 1.3 per cent.

The extra bank holiday for the Queens Diamond Jubilee would not have helped the growth data nor would the wettest April to June period on record.

After a slew of negative economic surveys, a fall in GDP had been forecast, but the size of the fall has shocked most economist who had predicted it to be around 0.2 per cent.

Royal Bank of Scotland Ross Walker said: 'Everything's a little bit weaker than expected. The construction fall looks implausible, the scale of it. The main disappointment is the services number. We thought even with the drag from the Jubilee that we would probably just about squeeze some growth out of that sector and it's contracted.

Scotiabank Alan Clarke said: 'This is a disaster for UK growth. It looks like construction has done a lot of the damage. In no uncertain terms disaster and on average for the year it's looking very unlikely that we'll be on the right side of zero growth. More likely we'll be contracting.'

This figure is the first estimate and could be revised in coming months; however it does suggest that the UK is in the longest double dip recession since records began back in 1955. Some believe it is the longest since the Second World War.

In the 1970s we had our last double-dip recession, the economy was choked with soaring oil prices and the miners' strike, though this only lasted two quarters.

Chancellor George Osborne will today get more pressure heaped on him as no doubt people will say his austerity measures are not helping the recovery.

Since the coalition came to power in the second quarter of 2010 the economy is 0.3 per cent smaller.

Mr Osborne said: "We all know the country has deep-rooted economic problems and these disappointing figures confirm that. We're dealing with our debts at home and the debt crisis abroad. We've made progress over the last two years in cutting the deficit by 25 per cent and businesses have created over 800,000 new jobs.

'But given what's happening in the world we need a relentless focus on the economy and recent announcements on infrastructure and lending show that's exactly what we're doing.'

Wednesday, July 25, 2012
Debt Support Trust
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How Do I Go Bankrupt?

Before you do anything you must seek impartial debt advice as soon as you are aware that you have a problem repaying your creditors. You should speak to a debt advice charity like the CAB or Debt Support Trust on 0800 085 0226.

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Bankruptcy Debt Advice

When you speak to an independent advice organisation they may be able to suggest other debt solutions, like a debt management plan, IVA or Trust Deed. However if bankruptcy is the only way forward then the advisor will be able to give you the positives and negatives of the solution, including what it would mean for your job, credit file and assets.

The sooner you seek debt advice the more options that may be available to you. Bankruptcy, like many debt solutions, will negatively impact your credit file. A qualified debt advisor will be able to explain how you can become bankrupt and the fees that apply. There are costs attached to bankruptcy which you must pay so it's important you understand the process. There are two routes to enter bankruptcty.

What are the other options instead of bankruptcy?

Alternatives to Bankruptcy that you may be suitable are:

  • Informal arrangement - We could give you advice on how to negotiate with your creditors asking them to accept token payments and explaining to them that this is just a temporary situation.
  • Individual voluntary arrangement -  This is a formal arrangement between you and your creditors, when an authorised insolvency practitioner  would put a proposal  forward to your creditors that you would repay an affordable amount each month over a certain period of time and at the end of the solution any remaining amount will be written off. The insolvency practitioner would supervise the arrangement and pay the creditors in line with the proposal. The creditors would be unable to pursue you for any of the debt if you were in this arrangement.
  • Administration order - If you have a court judgment against you from one or more creditors and your total debts are £5,000 or less, then the county court could make an administration order. You would then make regular payments to the courts which they would use to pay your creditors. Whilst you are paying the administration order your creditors can take no further action against you, without first speaking to the court.

You will have to pay a fee but this will be added to your administration order and not charged separately.

  • Debt relief order (DRO) - if you cannot pay your debts, owe less than £15,000, have assets worth less than £300 and have less than £50 per month disposable income, after paying normal living expenses, you may be able to apply for a DRO. These are run by The Insolvency Service Practitioner and do not involve the courts. They are run by The Insolvency Service in partnership with skilled debt advisers, called approved intermediaries, who will help you apply to the Insolvency Service for a DRO.

We cannot stress enough to make sure you are aware of all options that are available to you before you make any decisions.

Wednesday, June 20, 2012
Debt Support Trust
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Inaccurate Info in Current Accounts

Debt Help | Debt Advice | Debt Support

Applications For Current Accounts Have More Fibs Than Previous Three Years As people Hit Hard Times.

In the last three years fraud has reached its highest now, with more and more people lying about there financial situation, in order to open current accounts or secure overdrafts.

In the first quarter this year, a study done by Experian found that 44 in every 10,000 current account applications were fraudulent. In comparison to the last three months of last year this is a 23per cent increase.

Often people involved in current account fraud are 'financially stressed' they see nothing wrong with exaggerating or not revealing aspects of their financial circumstances, such as not mentioning bad credit histories.

Payment abuse accounts for around four out of ten frauds, this is when people try to make payments from accounts when they know very well the funds are not available to make the payments.

Since its highest point in late 2009, attempted insurance fraud has increased thirty seven per cent quarter on quarter with thirteen in every ten thousand applications and claims being detected as fraudulent.

Credit card fraud has also been on the increase it is now fourteen in every ten thousand applications in comparison to ten. Over the same period identify fraud has been on the increase, to eight in every ten thousand jumping from five.

UK director of identity and fraud services at Experian, Nick Mothershaw said: 'Credit cards have seen a resurgence in identity fraud, while a growing number of financially stressed individuals consider misrepresenting their personal or payment information when applying for insurance, contributing to a significant fraud upswing in the first quarter of 2012.'

Experian's records began in spring 2009 and since the records began misrepresentation of people's financial circumstances is at its highest. Financial services fraud rates had jumped sixteen per cent since the previous quarter and the main reason behind this is the misrepresentation of people's finances.

Although credit card and current accounts applications are on the increase, the number of fraudulent loan applications was at the lowest point recorded by Experian. The number had dropped by thirty eight per cent on the previous quarter.

There was also a drop in attempted mortgage fraud and savings account fraud in comparison to the previous quarter.

This information is based on information from fraud prevention systems National Hunter and Insurance Hunter, Experian manages this on behalf of its clients.



Wednesday, June 20, 2012
Debt Support Trust
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Mortgage & Debt Problems

This article was supplied by finance based website Money Moments.

At long last we seem to be benefiting from lower interest rates but for some of us it was a long time coming as we were tied into fixed rate deals. But just as we think we can take a sigh of relief we hear the monthly interest may have to go up because of the euro zone turmoil which can affect our monthly interest.

The fears that some financial institution will not be able to honor there debts has a knock on affect with banks and building societies and they will have to pay more to raise the money that they will lend the homeowner.

Last week the Bank of England warned that mortgage rate rises were almost inevitable.

Head of lending Brian Murphy, at the Mortgage Advice Bureau, a national network of brokers based in Derby, says: 'Lenders are under pressure to rebuild their capital buffers and increase their profits. As their costs of funding rise, they are passing this on to consumers through higher rates.'

Britain's biggest lender, Halifax, has raised rates for 850,000 customers with standard variable rate loans this month. Co-operative, Clydesdale and Yorkshire banks standard variable rate has also been raised.

From 1 June Bank of Ireland will be the next to act: its SVR loan will rise from 2.99 per cent to 3.99 per cent.

David Hollingworth, of mortgage broker London & Country in Bath, Somerset, says: 'You can't fix your food bills or your petrol bills, but you can put some certainty into your mortgage bill by fixing the rate.' Many people are advising that now is the time to fix your mortgage rate.

Though the average cost of a fixed rate mortgage is still higher than most variable loans 4.86 per cent. If interest charges increase this could change.

There are many different deals about and borrowers with at least 25 per cent equity may qualify for better deals. The Post Office for example has a five year fixed rate at 3.59 per cent.

If you are struggling with your debt at the moment then please seek debt advice immediately to see what options are available to you.

Wednesday, May 23, 2012
Debt Support Trust
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Debt Analyser

Thank you

Thank you for completing the call back form. One of our charity debt team will be in touch shortly via email or telephone to help.

From time to time Debt Support Trust is required to update our systems to ensure they remain as accurate as possible. We apologise that our debt analyser was not available today but hope one of our friendly and supportive team can help in the meantime.

If you would like to contact Debt Support Trust directly you can telephone 0800 085 0226 or email contact@debtsupporttrust.org.uk

Tuesday, May 22, 2012
Debt Support Trust
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Scotland Trust Deed, What Is It?

There are a number of ways people residing in Scotland can live a debt free life and one option which is available for people with unsecured debts is a Scottish Trust Deed. For anyone finding it a struggle to repay their debt we firmly believe you should seek debt advice as soon as possible for a registered debt advice charity.

What is a Scottish Trust Deed?

The Trust Deed Scotland is a formal arrangement where people residing in Scotland can consolidate all their unsecured debt. When you are in a trust deed you make one monthly affordable payment over a fixed period of time, usually 36 months.

When entering in to a trust deed you must be able to make monthly payments towards your debt on a regular basis. This money will then be distributed towards your creditors on a pro rata basis. To determine how much you should pay towards your debt you should complete an income and expenditure with a debt advisor. Following this, we would be able to explain how much you would have to contribute back towards your debt.

Are there benefits of Trust Deeds?

When you have overwhelming debt problems a trust deed has a number of advantages. Once you are making one affordable monthly payment you no longer have to struggle with a variety of different creditors. Also due to the fact that it is over a set period of time you are aware of exactly when it is coming to an end and when you will be debt free. Also once the trust deed has started all interest and charges by the creditors will stop and they will not be able to take any further against you. At the end of the agreement any unpaid debt will be written off.

Are there negatives of Trust Deeds?

The Trust Deed will place a a default against your credit file which will last for 6 years. If you have equity within any assets then this may be required too. For a full review of the pros and cons of a Trust Deed please visit our debt solutions page.

How can I arrange to get a Trust Deed?

As soon as you find yourself struggling to repay your debt we recommend you call us for some impartial advice. We will complete an income and expenditure with you and take note of all your debt. If at this stage we believe that a Protected Trust Deed may be applicable for you we will explain the pros and cons to this solution, as well as other solutions you are applicable for.

A Scottish insolvency practitioner will put a proposal forward to your creditors. The creditors can accept or reject your proposal. On the basis that a majority in number (e.g. 5 out of the 6 creditors) or a third in value accept the proposal then your Trust Deed will be Protected.

How much debt do I need to be in?

Not everyone is suitable for a Trust Deed and there is certain criteria you must meet. If you don't meet the criteria don't worry, there will be other debt solutions available for you. Typically, a person entering a Trust Deed will owe at least £10,000 in unsecured debt to a minimum of 2 different creditors. You would have to repay a certain percentage of the money you borrowed.

If you would like any further information please do not hesitate to give us a call on 0800 085 0226 or complete our debt analyser.

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Tuesday, May 08, 2012
Debt Support Trust
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Eliminate my Debt

This is a question many people who contact Debt Support Trust ask. The reality is, eliminating debt is not as straightforward as many people are led to believe.

If you find yourself in a position that you are unable to pay your debt the first thing you must do is seek debt advice. We always recommend a not for profit charity such as Debt Support Trust, a telephone based charity that has been set up to help people in financial difficulty in the  UK. You can also receive face to face debt advice from your local citizens advice bureau.

If a debt problem is left then the situation can quickly become too severe and only an insolvency solution is suitable. When calling Debt Support Trust you will be asked for information which we treat with the highest confidentiality. This information includes your contact details and some basic questions so that we can get a rough idea of your own personal situation. We then discuss your income, expenditure and assets. This is important to ensure the advice we are providing is accurate and specific to your situation. The telephone call to Debt Support Trust is free from all landlines, however if you are using a mobile please let an advisor know and we will call back - we don't want you to be charged for the call.

Once all the necessary information has been collected we will provide advice which is tailored to your own individual circumstances.

Our advice can range from providing a letter template to help you negotiate with your creditors through to bankruptcy.

A Debt management plan is an informal arrangement between you and your creditors, where you pay one monthly affordable amount and this is distributed amongst your creditors on a pro-rata basis. Interest and charges will be asked to be frozen, however this cannot be guaranteed. The length of time you pay your debt management plans depends on the amount of debt you have, if interest and charges are frozen and the amount you are able to pay each month.

An IVA is another debt solution. This solution usually lasts for five years and at the end of the term any remaining debt will be written off. This is a formal solution and all interest and charges will be frozen, however you must be able to contribute an affordable monthly payment to your debt. Your monthly contribution to your debt will be reviewed every 6 months.

Bankruptcy is one solution people associate with eliminating debt but our article shows some of the pitfalls of bankruptcy.

Any of the above solutions will affect your credit rating for 6 years and you should be aware of all the pros and cons before entering any solution.

We recommend you call Debt Support Trust to receive free debt advice to discuss which debt solutions would be best suited to your situation.

Wednesday, May 02, 2012
Debt Support Trust
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Don't Fret About Debt

Written by a volunteer at Debt Support Trust.

So many people, from all walks of life, find themselves in a position that they are fretting about the debt they owe on credit cards, personal loans, store card and to friends and family.

No longer is debt just a poor man's problem, but increasingly larger numbers of affluent families find themselves in a position that they are fretting about the debt they have acquired over the years.

For the middle aged group of today, they were brought up in the era off buy now pay later, where the majority bought their own homes and every second letter the post man brought offered you credit. There was never a need to save up for anything just put it on the credit card. Things were good, property rose at an alarming rate and for many if they required anything then to release the equity on your property was a relatively easy procedure.

I personally remember watching my own Grandmother (who lived through the depression) whenever she received anything nice she put it away in her bottom drawer "keeping it good for when she would need it". I never understood her logic and she died with a lovely bottom drawer, however looking back maybe she was wiser than the rest of us.

So many of us that have lived the good life on credit now find ourselves in a position that we are unable to reach the monthly repayments. This can be through no fault of our own but purely the effect of the economic climate. Some of us who had savings find they no longer gain interest. For others who had equity, they realise they are unable to sell their homes. Redundancy and ill health are all factors and when the marriage breaks down the financial strain can be enormous. With more and more teenagers going on to further education the financial impact lies within the parents to support them through what can be very expensive years.

Seeking Debt Help

So don't fret about debt are easy words, however when you find yourself unable to sleep at night it's not that simple. What I mean is worrying about a debt problem and not seeking help won't make the problem any easier. There are solutions to debt which you can benefit from such as a debt management plan, IVA or trust deed.

Nobody wants to ask for help nobody wants other peoples sympathy and most of all nobody wants to feel like a failure.

Our own personal belief in ourselves is after all one of the most important things we have. I write this from my own personal experience and stress you are not alone, there are many people who find themselves in this position.

The first thing you have to do is get debt advice. I would always recommend a not for profit charity such as Debt Support Trust or the citizens advice bureau for face to face advice.

I volunteer within Debt Support Trust two days a week, in the hope that I can give a little back to society. If you need debt help you can contact Debt Support Trust on 0800 085 0226 or complete a debt analyser form.

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Friday, April 20, 2012
Debt Support Trust
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