There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
Scottish Debt Solutions
In Scotland, bankruptcy and IVAs are handled in slightly different ways and are called Sequestration and Protected Trust Deeds (PTDs) respectively. If you have lived in Scotland for a year or more than these are the insolvency programs that you are going to have to deal with.They are in essence, however, very similar to bankruptcy and IVAs, so for more information you should have a look at our pages covering those procedures, or contact us for free debt advice.
Here we will be briefly going over what each refers to, and what the main differences are from their counterparts below the border. Again, if you need advice on debt then our Debt Counsellors will be able to help you come up with the best debt solutions to your debt problems.
SEQUESTRATION
What is Sequestration?
If you live in Scotland and wish to be declared bankrupt, then you actually have to be sequestered, as sequestration is the equivalent to bankruptcy in Scotland.
In order to be approved for sequestration you will have to meet the following conditions:
You owe at least £1,500 in unsecured debt,
You are insolvent (unsecured debt outweigh your assets),
You have not been made bankrupt within the last 5 years,
You have lived in Scotland for at least a year.
Even if this is your situation, it might not be the best option for you so get in touch for free debt advice and we may be able to find a better alternative for you.
If you live in Scotland and wish to be declared bankrupt, then you actually have to be sequestered, as sequestration is the equivalent to bankruptcy in Scotland.
In order to be approved for sequestration you will have to meet the following conditions:
You owe at least £1,500 in unsecured debt, You are insolvent (unsecured debt outweigh your assets), You have not been made bankrupt within the last 5 years, You have lived in Scotland for at least a year.Even if this is your situation, it might not be the best option for you so get in touch for free debt advice and we may be able to find a better alternative for you.
HOW SEQ. WORK?
How does Sequestration Work?
If you do decide to go ahead with sequestration, the following steps will be taken:
The court will decide whether this is appropriate for you (they may suggest a Trust Deed arrangement be entered in to instead),
If it is approved by the court, the assets that you do have will be transferred to a trustee and they will be sold in order to pay your creditors (you will be left enough to live on however),
Your unsecured debt will be written off,
The Sequestration will last for a year, for which time most credit options will not be open to you,
Your job may be affected (see the section on Bankruptcy for more information).
Due to the very serious consequences of sequestration, it is recommended that you get expert debt advice before petitioning the court. We may be able to find a better alternative for you.
If you do decide to go ahead with sequestration, the following steps will be taken:
The court will decide whether this is appropriate for you (they may suggest a Trust Deed arrangement be entered in to instead), If it is approved by the court, the assets that you do have will be transferred to a trustee and they will be sold in order to pay your creditors (you will be left enough to live on however), Your unsecured debt will be written off, The Sequestration will last for a year, for which time most credit options will not be open to you, Your job may be affected (see the section on Bankruptcy for more information).Due to the very serious consequences of sequestration, it is recommended that you get expert debt advice before petitioning the court. We may be able to find a better alternative for you.
SEQ. DIFs
What are the Main Differences between Sequestration and Bankruptcy?
Sequestration is cheaper than bankruptcy, with there only being a £100 administration fee plus court costs,
There are no other major differences, but if you would like more information then contact us for free debt advice.
Sequestration is cheaper than bankruptcy, with there only being a £100 administration fee plus court costs, There are no other major differences, but if you would like more information then contact us for free debt advice.TRUST DEEDS
What are Protected Trust Deeds?
Protected Trust Deeds are the Scottish equivalent of IVAs. They are a form of insolvency, but instead of your debts being written off immediately (as with bankruptcy and sequestration) you must make affordable payments for a period of time, and then whatever is left over will be written off.
It should be noted that a Protected Trust Deed is different to an unprotected trust deed because only the former is legally protected, as IVAs are in England and Wales.
You will qualify for a PTD under the following conditions:
You are insolvent (assets are of less value than unsecured debt),
You owe at least £10,000 in unsecured debt.
There may be better alternatives to Protected Trust Deeds in your situation, such as a Debt Management Plan. To find out if this is the case get in touch for impartial and free debt advice.
Protected Trust Deeds are the Scottish equivalent of IVAs. They are a form of insolvency, but instead of your debts being written off immediately (as with bankruptcy and sequestration) you must make affordable payments for a period of time, and then whatever is left over will be written off.It should be noted that a Protected Trust Deed is different to an unprotected trust deed because only the former is legally protected, as IVAs are in England and Wales.
You will qualify for a PTD under the following conditions:
You are insolvent (assets are of less value than unsecured debt), You owe at least £10,000 in unsecured debt.There may be better alternatives to Protected Trust Deeds in your situation, such as a Debt Management Plan. To find out if this is the case get in touch for impartial and free debt advice.
HOW TD WORK
How do Protected Trust Deeds Work?
If you qualify for a Protected Trust Deed and your petition is successful then the following will come in to effect:
You will only have to pay one monthly, affordable payment to your Insolvency Practitioner, who will then portion it off to your creditors (minus a fee),
Instead of the 5 years that this lasts in England and Wales with an IVA, usually this will only be applicable for 3 years,
All interest on debt will be frozen,
You may have to release equity in your home towards the end of the agreement to pay your creditors a lump sum.
If you would like to be put in touch with an Insolvency Practitioner, we are able to do that. We may also be able to provide a better solution to your debt problems if you contact us for free debt advice.
If you qualify for a Protected Trust Deed and your petition is successful then the following will come in to effect:
You will only have to pay one monthly, affordable payment to your Insolvency Practitioner, who will then portion it off to your creditors (minus a fee), Instead of the 5 years that this lasts in England and Wales with an IVA, usually this will only be applicable for 3 years, All interest on debt will be frozen, You may have to release equity in your home towards the end of the agreement to pay your creditors a lump sum.If you would like to be put in touch with an Insolvency Practitioner, we are able to do that. We may also be able to provide a better solution to your debt problems if you contact us for free debt advice.
TD DIFs
What are the Main Differences between Protected Trust Deeds and IVAs?
ñ To get a Protected Trust Deed you only need to owe £10,000 rather than the £15,000 necessary to get an IVA.
ñ PTDs only last 3 years, rather than the 5 years that IVAs normally last for.
ñ To get a Protected Trust Deed you only need to owe £10,000 rather than the £15,000 necessary to get an IVA.
ñ PTDs only last 3 years, rather than the 5 years that IVAs normally last for.
Contact Us
Get in Touch
Contact us at DebtAdvice.net if you would like free debt advice, or for more information on Protected Trust Deeds or Sequestration.
Contact us at DebtAdvice.net if you would like free debt advice, or for more information on Protected Trust Deeds or Sequestration.