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Are you struggling to pay your debt?
There are various options if you’re struggling with your debts in Scotland.
We provide IVAs by our licensed insolvency practitioner regulated by the Insolvency Practitioners Association. We provide information about all debt solutions but we do not provide advice as we are not regulated by the Financial Conduct Authority.
A Trust Deed in Scotland allows you to combine unsecured debts and make one affordable monthly payment.
You may want to consider a Trust Deed if:
Protected vs. Unprotected
A Trust Deed involves a consumer making one monthly repayment towards their debts, typically for four years, although this can vary.
A Trust Deed becomes ‘Protected,’ when your creditors do not raise objections to the IVA proposal sent by your creditors.
Advantages of a Trust Deed
Disadvantages of a Trust Deed
A Debt Arrangement Scheme is a formal solution backed by the Scottish Government.
Under the scheme, you set up a Debt Repayment Plan (DPP) that consists of one affordable monthly payment. If you wish to apply for this, an official money advisor will need to apply on your behalf.
A DAS may be an option if:
Advantages of a DAS:
Disadvantages of a DAS:
As a result of the Coronavirus pandemic, the Scottish government introduced the Low and Grow Debt Arrangement Scheme in 2021.
This scheme aims to help those who are temporarily experiencing short term financial difficulties.
It involves an official money advisor applying to your creditors on your behalf to request that you can reduce your payment to them. This lasts for 3 months, after which your financial circumstances will be reassessed in order to determine whether an extension is needed.
As this is a short term solution, it is not intended to exceed 6 months.
In this scheme, your finances are controlled by a Trustee, who may sell your assets to pay back creditors.
The fee to apply for sequestration is £150, which is paid to the Accountant in Bankruptcy (AiB), who conducts personal bankruptcies in Scotland.
If you owe £10,000 or more, your creditors can apply for you to be made bankrupt themselves.
Sequestration may be an option for you if:
Advantages of Sequestration
Disadvantages of Sequestration
MAP Bankruptcy is a scheme similar to sequestration but aimed at consumers with minimal assets and low income. If eligible, you may be able to get unaffordable debts written off.
MAP Bankruptcy may be an option for you if:
Advantages of MAP
The fee to apply is £50, which is smaller than the alternative sequestration route
You can see your eligible debts written off once the scheme is completed
It will put a stop to creditors chasing you for the money that you owe
It lasts six months, as opposed to 12 months with sequestration
Disadvantages of MAP
Your application will not be considered until the fee has been paid in full
Your credit rating will be poorly impacted for up to 6 years following the commencing of the scheme.
The criteria are more specific than other solutions, meaning not as many consumers will be able to qualify compared to sequestration and other solutions.
Debt Moratorium is a scheme in Scotland similar to Breathing Space, which is designed to take off creditor pressure in relation to your debts. The scheme used to last for 6 weeks, but currently, it has been extended to 6 months.
For Scottish residents, you can apply for a Debt Moratorium to stop creditors from taking action while you look into a debt solution – such as a Trust Deed or a Debt Arrangement Scheme.
You can apply for one yourself directly through the Accountant in Bankruptcy. However, it’s advisable to seek professional debt help first. By doing so, a Debt Advisor may then apply on your behalf, informing you of all available solutions you might want to consider in the meantime.
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Private & Confidential Support
The first step is the hardest but you’re in the right place – talking with one of our friendly assessors can help get the ball rolling.
Explore your options
Debt help without judgment
Talk to us about your situation, and we’ll let you know if an IVA may be a potential solution for you.
No Obligation Service
We can carry out a debt suitability assessment, and if you qualify for an IVA we can help put together an application with you. There’ll be no obligation and we’ll be on hand to answer any questions you may have along the way.
Start by finding out if you qualify by answering the below questions
Our team of experts help thousands of families get their finances back on track with an IVA.
*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
Check if you qualify for an IVA