Mr & Mrs P received a Charge for Payment, this gave them 14 days to pay their debt off or legal action would be taken against them. The two weeks past and they hadn't made a payment since this was received which means they were now Apparently Insolvent. This means that they could use the charge for payment as a reason to declare themselves Sequestrated (Legal name for Bankruptcy in Scotland).
Mr P worked full-time but was on a low wage and Mrs P stayed at home in order to look after the kids. There was £21,450 debt and it was all loans which were in joint names. After considering all options Mr & Mrs P decided that sequestration was the best option for the them.
Once they had decided that this was their best route out of debt they only had to wait until their creditors petitioned the county court for the couple to be declared sequestrated.
There is a two new forms of sequestration which now gives the person in debt the chance to declare themselves sequestrated. These new debt solutions are called
- Certificate Of Sequestration - This is similar to sequestration except you don't need to wait for creditors to make you sequestrated and the criteria as follows;
- You must live in Scotland (or have lived in Scotland within the last year)
- You must not have been bankrupt in the last five years)
- Owe at least £1500 in unsecured debt
- You must pay a fee of £100 to submit your certificate of sequestration to the Accountant in Bankruptcy (AIB)
- To receive the certificate you must use an insolvency practitioner (IP) or someone who works for the IP and has been given authority to act on his behalf. You can also visit your local CAB, approved money advisors for DAS or your local authority money advisers
- Only the person in debt can be granted the certificate - creditors cannot apply for this
- On the day the certificate is granted the person in debt then has 30 days to apply for their bankruptcy. All applications made after the 30 days will be rejected and they will lose their £100 fee. The process would then need to start over and a further £100 would be charged.
- The debtor will be required to provide evidence with their application to help the AIB so that identity can be confirmed and that they qualify for the bankruptcy. Acceptable evidence will be payslips, bank statements, proof of benefits if applicable.
- Also required would be tenancy agreements and HP agreements if they have any.
You can get a copy of the Accountant in Bankruptcy Certificate for Sequestration here, however it must be completed by an IP, approved money adviser, CAB or local authority money adviser.
LILA (Low Income Low Asset) - As the name suggests this debt solution is for people with low income and low value assets if any. the criteria for a LILA is as follows;
The criteria to enter Sequestration via the LILA route is;
- Your income must be less than £237.20 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 £237.20
- You must be unable to meet your current repayments and charges
- You cannot own property or land
- The cost for LILA is £100 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
Showing posts with label debt advisor. Show all posts
Showing posts with label debt advisor. Show all posts
Tuesday, 10 May 2011
New Trust Deed statistics revealed!
New debt statistics have revealed how many Protected Trust Deeds are being administered per postcode. These new debt stats were collated by Debt Support Trust and formatted into a table in order to show which postcode was the largest for protected trust deeds.
From the new debt statistics it is clear that of the 7,980 protected trust deeds (KY11) Inverkeithing had the largest amount between 2010 and 2011 with 144 while TD4 (Earlston) had the lowest number over the year with just 1 case.
The new information has been released in the form of a table which can be searched in order to find a specific postcode. The information has also be released with information to help everyone understand what the statistics mean.
The five largest postcode areas for protected trust deeds are shown below in the list.
KY11 - 144 Inverkeithing
ML5 - 114 Coatbridge
ML6 - 113 Airdrie
EH54 - 110 Livingston
G81 - 105 Clydebank
The general postcode regions have also been collated which means people can see a general overview of which regional postcode was biggest for a Protected Trust Deed.
Note: It is worth remembering that these stats while useful are not linked to per 100,000 population. This means that we while the G postcode may be the largest for a Protected Trust Deed it is also the largest per population and therefore faced a higher chance of having the largest Protected Trust Deed. This information can help to see what effects can create debt and help to stop it in future. For example, In an area where a large factory has closed down and people have faced redundancies it is useful to know wither or not this area was large for protected trust deeds as it could have had an impact.
This information was collated after the released statistics from the accountant in bankruptcy who administers protected trust deeds. The information was then broken into individual postcodes and listed from largest to smallest.
Please note there is a discrepancy of 7 between the 7970 Protected Trust Deeds and the 7973 postcodes.
The statistics have also been split into a pie chart which shows the regional postcodes for each Protected Trust Deed.
The introduction of certificate of sequestration last year also contributed to a large decrease in the number of people who entered a Protected Trust Deed. This new debt solution allows people to apply for sequestration without the need to prove they are apparent insolvent and therefore have their creditors seek sequestration.
From the new debt statistics it is clear that of the 7,980 protected trust deeds (KY11) Inverkeithing had the largest amount between 2010 and 2011 with 144 while TD4 (Earlston) had the lowest number over the year with just 1 case.
The new information has been released in the form of a table which can be searched in order to find a specific postcode. The information has also be released with information to help everyone understand what the statistics mean.
The five largest postcode areas for protected trust deeds are shown below in the list.
KY11 - 144 Inverkeithing
ML5 - 114 Coatbridge
ML6 - 113 Airdrie
EH54 - 110 Livingston
G81 - 105 Clydebank
The general postcode regions have also been collated which means people can see a general overview of which regional postcode was biggest for a Protected Trust Deed.
Note: It is worth remembering that these stats while useful are not linked to per 100,000 population. This means that we while the G postcode may be the largest for a Protected Trust Deed it is also the largest per population and therefore faced a higher chance of having the largest Protected Trust Deed. This information can help to see what effects can create debt and help to stop it in future. For example, In an area where a large factory has closed down and people have faced redundancies it is useful to know wither or not this area was large for protected trust deeds as it could have had an impact.
This information was collated after the released statistics from the accountant in bankruptcy who administers protected trust deeds. The information was then broken into individual postcodes and listed from largest to smallest.
Please note there is a discrepancy of 7 between the 7970 Protected Trust Deeds and the 7973 postcodes.
The statistics have also been split into a pie chart which shows the regional postcodes for each Protected Trust Deed.
The introduction of certificate of sequestration last year also contributed to a large decrease in the number of people who entered a Protected Trust Deed. This new debt solution allows people to apply for sequestration without the need to prove they are apparent insolvent and therefore have their creditors seek sequestration.
"Robbing Peter to Pay Paul"
There are millions of people across the UK who have debt, however that debt is manageable and whilst we might begrudge paying the interest each month we know it's possible to repay our debt eventually.
Some people become entrenched in debt, struggling to find the solutions to resolve long term financial problems, often resulting from another issues such as a marital breakdown or loss of job. When the difficult financial times come, it's easy to understand why people would want to resolve the problems themselves - using their own initiative to move credit card balances to get the best deal, avoid paying high interest and charges and ultimately pay off their debt.
The difficulty for many people arises when there is no longer any credit card available, no loan or further credit on offer. When financial times get tough, it's important to accept that in some instances qualified debt experts could be required - not another loan!
When debt problems are coming through the letter box or via the telephone;
- Face it head on
- Stop looking for a loan
- Ask for debt advice from a qualified debt advisor at a charity, such as Debt Support Trust or Citizens Advice Bureau
Some people become entrenched in debt, struggling to find the solutions to resolve long term financial problems, often resulting from another issues such as a marital breakdown or loss of job. When the difficult financial times come, it's easy to understand why people would want to resolve the problems themselves - using their own initiative to move credit card balances to get the best deal, avoid paying high interest and charges and ultimately pay off their debt.
The difficulty for many people arises when there is no longer any credit card available, no loan or further credit on offer. When financial times get tough, it's important to accept that in some instances qualified debt experts could be required - not another loan!
When debt problems are coming through the letter box or via the telephone;
- Face it head on
- Stop looking for a loan
- Ask for debt advice from a qualified debt advisor at a charity, such as Debt Support Trust or Citizens Advice Bureau
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