You can get help with your debts in Scotland from a number of places. Most of which will give you free advice at the very least. If you owe money to a number of creditors, you can make arrangements to repay your debts using formal government legislation.
One of the main purposes of any debt solution is to help you to regain control of your finances and reduce your outgoings to an affordable level. If it is an option for you, it may be possible to write to your creditors yourself and agree on a repayment plan.
However, if your debts have become unmanageable then a more formal debt solution may be required.
In Scotland, these solutions that use government-created legislation are known as a Scottish Trust Deed, Debt Arrangement Scheme and Sequestration. All of which stops creditors chasing you for payment, freezes interest and charges and reduce the amount that you repay to a realistic, yet affordable level.
Scottish Trust Deed – More correctly referred to as a Protected Trust Deed, this is set up by an insolvency practitioner and allows an individual to make a fresh start in a typical period of 48 months, and write off unaffordable debts. Find out more about the risks of Trust Deeds and benefits of Trust Deeds.
Debt Arrangement Scheme – In Scotland only, you can arrange a Debt Payment Programme under the Debt Arrangement Scheme. Find out more about the advantages of a DAS Scotland and the disadvantages of a DAS Scotland.
Sequestration – The term used to describe bankruptcy in Scotland. There are two types of personal bankruptcy in Scotland. Minimal Asset Process and Full Administration Process Sequestration. In this case, this will largely depend on your total debt level and your ability to repay those debts in a reasonable time and the assets that you may, or may not own.
When evaluating where to get help with your debts, you should ensure that you’re speaking to someone who is authorised by a UK regulatory body. There are many companies out there offering debt advice, but not all of them are suitably qualified and may be quick to sell you a solution that is not in your best interest.
Another consideration in your decision is to look for the reviews of that company online. Trust Deed Scotland® have thousands of five star reviews on Trustpilot.