Bankrupt or Trust Deed

[Miss Poohs]

I posted this question on another site as well, but I thought perhaps as this one seems to have more Scottish input I'd ask here too - hope thats ok?

 

Its a kinda broad question but, in considering BR or TD what should the major deciding factors be?

 

What are the important questions to ask regarding which path to go down?

 

Many thanks.

 

Miss P

[blueda]

Hi Mis Poohs, you have not mentioned what kind of debt or the circumstances, if you provide more information then we will be able to advise you of the options available.

[IdaInFife]

to be honest wecannot advise you either way as this has tobe a personal decision for you and yours.

 

what type of debts do you haveand the rough amounts due? how much money do you have to pay the creditors each month?

 

are you a homeowner?

 

here is the link to te AIB that you can read about BK and LILA:

http://www.aib.gov.uk/MainNav/Services/debtorportal

 

and a bit more info:

 

National Debtline Scotland | Debt Advice | Factsheet 01 Bankruptcy

 

 

here is a link to trust deeds:

 

National Debtline Scotland | Debt Advice | Factsheet 21 Trust Deeds

 

ida x

[Miss Poohs]

Alrighty - why did I expect you to know what going on here - silly me.

 

I'll get dinner by then try and word the current situation as best I can.

 

Be back later.

[PCPFORMULA3000]

Trust deed if you have assets ie property, savings etc.....BR if you are renting, unemployed, no savings......trust deed 3 years br over in 1 year....what is your situation?

[PCPFORMULA3000]

Any update on the situation?

[Chockster]

Hi

 

I was hoping someone could help. My wife was made redundant and is having difficulty finding a job (out of work for 14 months).

 

We are just keeping our heads above water, but have basically no money left after my pay day which pays all the debts.

 

I have quite a good salary and my wife gets £260 a month in JSA.

 

After each month, our disposable income is around £500 (although my wife is a heavy smoker and this comes to roughly £280 a month and the rest is spent on food).

 

So each month, after food and fags, we have nothing left.

 

We have around £28k of unsecured debt. Would we be able to file for a TD? Our creditors always get paid each month, but I don't think we can carry on much longer as this is causing much stress in our home?

 

Any advice is much appreciated.

[IdaInFife]

do you own your own home?

 

the links in post 3 have a read over them

[Crocdoc]

You fail to mention if you have any singular asset in excess of £1000.00. Furthermore, You cannot describe money for food as disposable income and before considering Trust Deed it is important to calculate all essential expenditure.

The following Income expenditure sheet should help.

Total Income including Benefits.

 

Rent

Mortgage

Endowment

Council Tax

Secured Loan

Telephone

Electricity

Gas

Other fuel

Life Insurance

House Insurance

Food/ Housekeeping

Alcohol/Tobacco

Entertainment/Sport

Clothing

Pocket Money

Travel

Road Tax

Car Insurance

Prescriptions/Health

Child Care Costs

TV Rental

TV Licence

Contingency

 

Once you have done the calculation, you will be in a better idea of where you want to go. However, remember that Insolvency Practitioners will always suggest Trust Deed as they make lots of money from managing

 

I hope this helps.

[Chockster]

thanks for the advice.

 

We have a new car (bought by father in law) 2 years old - but we are paying back father in law (was £300 per month, but he suspended the repayments until we were back on our feet again). We are council tenants and we don't have any oter assests over £1000.

 

completed the table provided

 

Rent 175

Mortgage 0

Endowment 0

Council Tax 85

Secured Loan 0

Telephone 45

Electricity 35

Gas 28

Other fuel 0

Life Insurance 0

House Insurance 0

Food/ Housekeeping 275

Alcohol/Tobacco 280

Entertainment/Sport 0

Clothing 0

Pocket Money 0

Travel 25

Road Tax 10

Car Insurance 19

Prescriptions/Health 0

Child Care Costs 0

TV Rental 0

TV Licence 12

Contingency 0

 

unsecured debt 919

student loan 63

Overdraft interest 20

 

this totals exactly what the monthly income of our household is.

 

have been living like this for a few months and feel we can't go on much longer like this. our bank says we can consolidate our loans in 6 months time into 1 monthly repayment, but not sure we will make it another 6 months.

 

Would a TD solve these issues?

 

Thanks

[IdaInFife]

who's name is the car in , yours or FIL?

 

ida x

[Chockster]

the car is in our name.