Court Summons - Scotland Resident

[madmarkym]

Hi All

 

Several weeks ago I received a Court summons for a 774 pound debt with HFC Bank. I am a resident of Scotland and I do understand the law is slightly different here than in England.

My total debts are in excess of 10,000 pound and I have not paid any of these debts for some time now, due to losing my job on medical grounds.

I am married but separated, I live in rented accommodation and I currently receive Income support + DLA (Disability Living Allowance).

I have been lead to believe that if I was to go bankrupt now it will last for three years, if I go bankrupt after April the law in Scotland changes and I would be bankrupt for year.

If I was to try and pay the debt off how long would the court give me clear it?

Do I try and make payments until after april then stop them and go bankrupt at that point?

Or would I be best trying to pay the whole debt off and deal with each debt as any action is taken against me?

 

I am very stressed trying to work out what is best I have got about 2 weeks to make my decision.

If anyone can give me any advice it would be most appreciated.

Thanks

Mark

[vselym]

Personally speaking, i wouldn't opt for bankruptcy, a year looks good as a headline, but trust me the ramifications are far more reaching ! Have you contacted one of the FREE debt helplines ? Do a search and give them a call. Bottom line is that if you do owe the money, they can only have what you can afford, even if thats a small amount monthly ! Do some reading on here for other peoples experiences, it probably isn't the lost cause you currently see it as

 

regards

 

vselym

[Hippy-chick]

I agree madmarkyman.

 

 

Bankruptcy may be AN option, but it is not the only one, and it may not be the best.

 

I'd try calling the National Debtline on 0808 808 4000 for free and non-judgemental advice.

[rory32]

Hi Mark and welcome to CAG.

Several weeks ago I received a Court summons for a 774 pound debt with HFC Bank.

Are you defending the claim? Are there any charges on the account? What are they requesting - decree or sequestration?

My total debts are in excess of 10,000 pound and I have not paid any of these debts for some time now, due to losing my job on medical grounds.

I am married but separated, I live in rented accommodation and I currently receive Income support + DLA (Disability Living Allowance).

Are you likely to be going back to employment in some form or is this a long term situation?

I have been lead to believe that if I was to go bankrupt now it will last for three years, if I go bankrupt after April the law in Scotland changes and I would be bankrupt for year.

Correct. Sequestration limits will be more in line with English bankruptcy laws after April.

If I was to try and pay the debt off how long would the court give me clear it?

If you applied for a time to pay order then the court would assess your level of payments from your income, so in your case they would be set at a very low amount.

 

You say you have 10K worth of debt, what is the debt made up of e.g. what are the types of accounts (credit cards, loans, council tax) and when were these accounts initially taken out?

[madmarkym]

Hi All

 

Thanks for your advice, I will certainly take it on board.

 

Rory

 

to answer you questions

 

1) No I was not going to defend the claim, What the summons does say is that they are claiming 775.15 with interest on that at 22.44% from Feb 2007 together with expenses on bringing the action.

 

2) I hope to eventually go back to work but I don't know when.

 

3) My Debts are made up of credit cards and loans over the last 3 years.

 

I was told that the court would only accept the payments spread over 12 - 18 months max, is this correct. That would make my payments at over 40 pound per month depending how much the charges are.

 

Thanks again for your assistance with my predicament, if you have any other questions please ask away

 

Best wishes

madmarkym