Sequestration Case Files

Mr & Mrs P have recently received a Charge for Payment. This gives them 14 days to pay their debt of action will be taken. It is now over two weeks since this was received and they are now Apparently Insolvent. This means that they can use the charge for payment to look at Sequestration (Legal name for Bankruptcy in Scotland).

Mr P works full-time but is on a low wage and Mrs P stays at home to look after the kids. Mr P contacted Debt Support Trust about the debt situation they were facing.

There is £21,450 in debt and it is all loans and are in joint names. After considering all options Mr & Mrs P have decided that Bankruptcy is the best option for the them.

They have since contacted the AIB (Accountant in Bankruptcy) to get the forms and these have been handed back and each paid £100 for the cost of Sequestration.

Bankruptcy Case Files

Miss G has run up debts of over £20,000. She lives with her parents and does not have any assets that she could sell. She has one child and has had her income slashed as she has had to go part time.She contacted Debt Support Trust and after all avenues were explored the solution for Miss G was Bankruptcy.

After paying the fee of £450 for the insolvency service for the Official Receiver. As her income decreased she did not have to pay court fee due low wages.

Bankruptcy was then granted. Miss G did not have to pay any money every month as her income is low. Miss G will be discharged from her Bankruptcy after 1 year. Miss G is aware of the impact on her credit file but there was no other solution available to her.

Individual Voluntary Agreement Case Files

Ms E went through a divorce over five years ago now. Ms E now lives with her grown up kids in a rented house through her local authority. She has debt outstanding at approx £40,000. Her debts are two loans and a couple of credit cards.

After the divorce there was only her income and Child Support payments from her ex husband. As the kids are now 18 she does not receive any child support anymore and is struggling to pay her creditors. She has robbed Peter to pay Paul but is now at limits on both credit cards.

Ms E recently sought advice and called Debt Support Trust for financial help. After looking at all avenues Ms E has decided to enter an IVA.

The nominee looking after her case has sent out the proposal to Ms E and also to her creditors. Ms E has a disposable income of £300 per month. The monthly contractual payments for debt add up to £920 per month.

The meeting of the creditors has taken place and the vote went in favour of the IVA to go ahead meaning that in five years Ms E can look forward to a new beginning. Ms E will pay £300 per month into her IVA and will pay so much back to the creditors and at the end the rest will be legally written off. All interest and charges will be frozen. (Unless the IVA terms are not met then these can be added back on).

Ms E can now see light at the end of the tunnel and has no assets that the supervisor will look at so has now peace of mind.

Protected Trust Deed Case Studies

Mr W has recently separated from his long term partner and now lives alone. He has approx £25,000

of unsecured debt from a personal loan to various credit cards all in his sole name. He rents his home from a local housing association.

As there is now only one wage coming into the house he is now finding it difficult to pay all of his essential bills and does not have enough money left over to service his debt. Once the essential bills are paid he only has £240 left over to pay to his debt. He needs £695 per month to cover his monthly contractual payments.

Mr W sought advice and contacted Debt Support Trust and after we gave the most appropriate advice we advised on a PTD. The trust deed allows Mr W to make an offer to his creditors in the hope he can get this sorted in the next three years. He has no assets like a house or car etc.

After Mr W signed his trust deed the trustee advertised his trust deed in the Edinburgh Gazzette and this gives the creditors 5 weeks to object. As long as a third in value or a majority in number don’t object then the trust deed will become protected. Once it is protected all interest and charges are frozen. (Unless the trust deed is not completed satisfactorily the interest and charges could be added back on).

This means that in three years Mr W will be discharged from the trust deed and all outstanding debt

will be written off.