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Bankruptcy in Scotland - Self Sequestration

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A friend of mine who lives in Scotland has no job, no assets and thousands of pounds of debt.

 

She wants to make herself bankrupt, however Scottish Law states that in order to apply for self-sequestration, one of her creditors must have served her one of the following :-

 

1. a Charge for Payment and fourteen days notice have elapsed or,

2. a Statutory Demand and 21 days have elapsed or,

3. an Earnings Arrestment as a result of a Charge for Payment.

 

She has received a letter which is titled "Default notice served under section 87(1) of the Consumer Credit Act 1974"

 

If she doesnt pay the outstanding amount before 16th January 2008 they will (quoted):-

 

1. With effect from the date shown, by this notice we terminate the agreement, close your bank account and demand payment imediately of any amount you owe us on your account: and

2. on or after the date shown, we may take legal proceedings against you and/or instruct a debt collection agency to recover any amount you owe uson your account.

 

Does anyone know if this letter is considered a "charge for payment" or a "statutory demand" as per the above ?

 

Many thanks in advance.

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Does anyone know if this letter is considered a "charge for payment" or a "statutory demand" as per the above ?

 

No it isn't. It is just a default notice which has to be served before the account is transfered to a DCA or legal action is taken to attempt to enforce the account.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

YOU CAN NOW COMPLAIN TO THE OFT ABOUT THEIR CONDUCT UNDER THE CONSUMER PROTECTION FROM UNFAIR TRADING REGULATIONS 2008.

 

 

 

Complaint to the OFT about DCA's threatening legally action on statute barred accounts

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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Thanks very much for your quick answer.

 

Do you know if theres any way she can speed up the process of getting one of these letters ? It has already been dragging on for 5 months. All she gets is letters from either the comanies she owes money to or the debt collection agencies they have passed her details to. But it seems no-one wants to take her to court. All they do is sell the debt on to some other debt collection agency.

 

Citizens Advice Bureau told her not to respond to the letters or telephone them. I'm not sure how this is helping though ?

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If I was in her position I would respond to the letters by asking them to make me bankrupt. Don't do anything over the phone, it needs to be in writing. Sequestration will change in April under the new act - I'll have a look at it and see if there is anything in it that might help her.


HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

YOU CAN NOW COMPLAIN TO THE OFT ABOUT THEIR CONDUCT UNDER THE CONSUMER PROTECTION FROM UNFAIR TRADING REGULATIONS 2008.

 

 

 

Complaint to the OFT about DCA's threatening legally action on statute barred accounts

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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Okay having looked at the new Act she is really still going to have to ask her creditors to make her bankrupt or write off the debt. Is she likely to be going back to work in the near future? If so she may also wish to look at a protected trust deed or a Debt Arrangement Scheme (DAS).


HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

YOU CAN NOW COMPLAIN TO THE OFT ABOUT THEIR CONDUCT UNDER THE CONSUMER PROTECTION FROM UNFAIR TRADING REGULATIONS 2008.

 

 

 

Complaint to the OFT about DCA's threatening legally action on statute barred accounts

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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I think there is also an amount she must owe as well.

 

I know in 2001 it was £5000.

 

 

Idax


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