If your financial situation becomes too difficult to sort out on your own, then the following options may be available to you.
For more details and for information on how to go about these, we strongly suggest you seek professional advice from the Useful Contacts shown on the Financial difficulties page.
Granting a Trust Deed is voluntary and can only be initiated by you. It is only available to residents in Scotland and offers an alternative to sequestration (bankruptcy).
A Trust Deed is a way of setting up a monthly repayment schedule based on what you can afford to pay, if you cannot repay your debts in full. A deed will typically last for a term of 3 years, after which any remaining debts are normally written off.
Important information about Trust Deeds:
In some circumstances you can petition for your own sequestration (bankruptcy). Your assets may also be sequestered (bankrupted) by somebody you owe money to, or by your trustee acting under a trust deed.
Sequestration only applies to residents in Scotland.
In a sequestration, a Trustee (a licensed insolvency practitioner) is appointed to recover, manage and sell-off your assets to pay your creditors. The Trustee may also seek a contribution from your income if you're employed. Sequestration normally lasts for 3 years.
Important information about sequestration:
If you have some surplus income and have more than one debt which you'd like to pay off, you may be able to apply for a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS).
DAS is only available to residents in Scotland.
Under DAS, you make a single regular payment to an approved payments distributor. They then distribute sums to the people you owe money to. If you keep to the agreed payments, your creditors will not be able to take any further action against you.
Important information about DAS: