bankruptcy and losing my sanity

[Moonlighter]

Hi Going Mad

 

Well done for posting - you've got everything down and hopefully getting that off your chest will help a bit cos it's the first step to getting clear of your debt. You have now turned a corner and there's a massive light at the end of a short tunnel now.

 

You've got the LILA form - that's another huge step. Please fill it in to the best of your ability and phone a local insolvency practitioner to go through it with you before you post it. They will do this free of charge over the phone and as they handle bankruptcies themselves every day, will not judge you. I wish I could give you my phone number but I can't, so look up Yellow Pages under insolvency practitioners, Google insolvency practitioner in your nearest town, or look up the Institute of Chartered Accountants of Scotland website under IPs. The Institute of Chartered Accountants of Scotland

 

 

The Accountant in Bankruptcy will be handling your sequestration (Scottish bankruptcy) and they may delegate the work to a firm of local IPs. Either way, they are not able to trace your old debt so try to remember as many old ones as you can - although some debts might be so old that they may actually be too old to claim in the sequestration (something called prescription) - so just try to remember as many as possible. If one or two come out of the woodwork then that's not a problem anyway as the Trustee would just send them the bankruptcy information at that time.

 

Things are going to get so much better when the sequestration goes through. The nasty letters and phone calls will stop from debt collectors. The wages arrestment will stop. Sequestration only lasts for one year and your day to day life will not be adversely affected at all. Life will get back to normal, I promise.

 

All the best.

[Moonlighter]

Hiya, just confirming what you said initially that the student loan(s) won't be written off under the sequestration.

 

Kind regards

[Moonlighter]

Hi Going Mad

 

If you are going for sequestration, then I understand from others who have gone down this route that insurance cover can be obtained (with perhaps only a slightly higher premium) through an insurance broker as they send in the forms with a letter of recommendation, even if they've never met you before! So please don't let that put you off. The relief of being free from completely unmanageable debts which are affecting your health and that subsequent return to health more than offsets any problems in the future.