Taking control of personal debt in Scotland
At the start of the New Year many of us in Scotland find ourselves reflecting on our financial health, particularly concerning personal debt. The good news is Scotland boasts a range of excellent solutions to manage and overcome problem debt. Understanding these options can be a game changer in your financial journey.
A Moratorium: A Six-Month Shield
Under the current legislation, a Moratorium can be a vital first step. It offers a breathing space by stopping creditors from taking any action against you for six months. This period can be crucial in planning your next moves without the immediate pressure of creditors.
The Debt Arrangement Scheme (DAS): A Structured Repayment Plan
The Debt Arrangement Scheme (DAS) provides a more structured solution. It allows you to repay your debts over an extended period. The key benefits? It freezes interest and charges and protects your assets while you work towards clearing your debt. This approach is ideal for those who can manage regular payments and wish to avoid any more drastic measures.
A Trust Deed: Balancing Payments and Relief
A Trust Deed is a formal agreement between you and your creditors. It usually spans four years, during which you pay back an affordable amount. There's an element of debt relief involved, though it's important to note that your assets may be at risk, and it is formal insolvency. This option suits those who can commit to at least four years of contributions and can afford to make regular contributions.
Bankruptcy (Sequestration): A Last Resort
Bankruptcy, or Sequestration, is often seen as a last resort. It involves transferring your assets to a Trustee, who then uses them to pay off your creditors as much as possible. If you're able to, you will be expected to make contributions for four years. This option is for those facing severe financial difficulties and who have exhausted other avenues.
No matter your circumstances, it's important to remember that help is at hand. TC Debt Solutions, a part of Thomson Cooper, provides free, confidential and non-judgemental debt advice. If you're struggling with problem debt, it's crucial to reach out. Suffering in silence is not the only option.
This year, why not take a bold step and get your debts under control? With the right approach and support, you can tackle your debts head-on and pave the way to a more relaxed and enjoyable life, free from the worries of problem debt.
Whether it's a short-term breathing space or a long-term repayment plan, Scotland's array of debt solutions offers hope and practical assistance. Remember, taking the first step towards addressing problem debt is often the most crucial. TC Debt Solutions is here to guide you through this journey, ensuring you don't walk it alone. For more information, or to speak with one of our team please contact:
Ian Brown
Senior Insolvency Manager
ibrown@thomsoncooper.com
Phone: 01383 628800
Mob: 07519 124657
Richard Gardiner
Partner
rgardiner@thomsoncooper.com
Phone: 01383 628800
Mob: 07872 376105
Maureen Walls
Senior Insolvency Manager
mwalls@thomsoncooper.com
Phone: 01383 628800
About the author
Ian Brown
Ian is an expert in the Debt Arrangement Scheme and Business Debt Arrangement Scheme, assisting individuals, sole traders and partnerships.
He also advises on personal debt solutions recommending the best option to resolve problem debt issues.