Bankruptcy/Trust Deed help in Scotland please

[sick of it all]

Hi,

Here's my story

Made redundant in August 2008, went on a debt management plan with Payplan in November 2008. Paying £25 per week towards my debt but will take me 50 years and am struggling badly to pay that amount.

Got divorced in 2009 (after a six year separation) and had to move house, which put my bills up considerably. I have a new partner and two children, and now live in a house owned by my mother.

The only income I have is from JSA, child tax credits, child benefit and child maintenance. I get council tax benefit too. My partner doesn't work, and one of my children leaves school in June, and thankfully will have a full time job from August. But my income will drop at the same time by more than I could ask her to pay from her low paid job.

I'm trying hard to find work, I am on a waiting list for a job which fingers crossed I should get before the six months on the list expires. That would pay me around £100 more a week than I am getting now but that would just mean I can eat, and be warm.

I'm fed up being hungry, cold and stressed out by debt.

I have looked into things but am very worried by Trust Deeds and by bankruptcy, it keeps me up at night with worry as they are so official.

 

I intend to go to the citizens advice and get their help.

 

I have heard of 'low assets low income', just how bad is it to go through this? Thinking maybe I should just struggle for another few years and go down the Trust deed route.

 

How does bankruptcy affect house insurance? I'm a tennant of my mothers and I don't want to let her know about any bankruptcy, but that was a question on the insurance form.

Is it true that you can't be the electricity account holder anymore?

Loose your phone supplier etc?

Also the job I'm hoping to get also asked on the form if I was a bankrupt. So I'm worried about that too. It was with the DWP. Does anyone know if you can't work for them if you are bankrupt or if they would sack you if you become so while working for them?

My partner has a car, worth around £3000. As he isn't working, (he's a writer) I pay his car bills and get to use his car. Can I count these as outgoings, even though I don't own the car?

What counts as my assets? Is it just my things or my families items too as I pay all the bills.

I opened a basic bank account with Northern Rock in anticipation of going bankrupt but, I have £10 in it, will that get closed as well? Should I have waited till after the bankruptcy?

 

We watch every penny, we have to, and lead a very fruggle lifstyle. We don't smoke, go out etc and we have tried really hard to keep the DMP going and pay back what I owe but it's just got too hard.

 

There is a lot to this, I think you have to get your mind around all of these niggles first before you can go through with official debt help or I would end up more of a wreck than I am.

 

Can anyone offer some advice, answer the questions, point me towards further reading/help etc or can just tell me of their own experiences.

 

Thank you.

[Revvy]

My best advice my friend would to seek impartial money advice from citizen's advice. I'm presuming you entered into your agreement without doing so, as they would ensure you could pay within your means.

 

A trust deed, by the sounds of it, may not suit your needs as that requires some level of consistent contribution. Bankruptcy may be your best bet but I say that as someone without any training.

 

You should still have enough money to enjoy your life. Go and seek genuinely impartial advice, you will feel better for it.

 

Good luck!

[Revvy]

My best advice my friend would to seek impartial money advice from citizen's advice. I'm presuming you entered into your agreement without doing so, as they would ensure you could pay within your means.

 

A trust deed, by the sounds of it, may not suit your needs as that requires some level of consistent contribution. Bankruptcy may be your best bet but I say that as someone without any training.

 

You should still have enough money to enjoy your life. Go and seek genuinely impartial advice, you will feel better for it.

 

Good luck!

 

Oh and I say this as someone who entered into a Trust Deed 3 years ago. They seem official but in practice I found my Accountancy in Bankruptcy most approachable and very, very friendly.

 

It really does sound daunting, it did for me too, but if so long as you adhere to the terms of your agreement and inform them of any change in your circumstances (for good or bad) then they are fine!

 

As I say, don't let it worry you (easier said than done) as there are people out there who WANT to help!

[sick of it all]

Hi Revvy,

 

Thanks for the advice and the good wishes!

That has picked me right up!

 

I did have enough money to keep up the DMP when I signed up but I moved out of the marital home and found my self with more bills to pay. I just haven't told them that it's got harder for me as I was just trying to struggle on, I did't want to lower the payments as that would have taken me longer to pay it all off.

I would also have tried to struggle with a trust deed, pay as little as was allowed. Anyone know how much that would be?

Just so I could feel I had paid a little back.

 

I'd still like it please if someone could anwer the other questions I posted, before I book a Citizens Advice appointment. I want to feel confident before I go there.

 

Thanks again,

Kind regards!

[sick of it all]

I'd really like to know if anyone knows if the DWP will take you on as a bankrupt or what would happen if you went bankrupt while working for them.:?

That's one the things that worry me most, as it's the only interview and job offeri have had in 18 months!

Thanks.

[Dipply75]

Hi sick of it all, I know the prospect of losing a chance of a job is worrying you sick...it would for me to!

 

I worked for an Insolvency Practitioner a while ago and there were people who worked for the civil service, dwp etc in your position so I do not think it a problem once you work there. That is your private financial business, employers are not contacted to inform them specifically of this sort of thing.

 

I cannot say how it would affect an application though. There are certain jobs you are not allowed to do while in any form of bankruptcy (director, local government etc), but not what you are looking at. Problem is, a lot of places credit check now - but at least warn you in advance they will do this.

 

Just as Revvy said, you should speak to the citizens advice or a local welfare rights unit?

 

They are wonderful and you will not be held to anything just by telling them your circumstances. They can recomend options and who to go to (most citizen advices have insolvency practitioners etc they know and refer folk to).

 

The other thing is...have you looked into any of these debts? ie asked for agreements, see what legally enforceable, any charges you can reclaim to reduce the burden etc?

 

Just talking about it then starting to reclaim charges etc makes a lot of us feel like we are taking control of them...taking them on! Loads of help on here for all that.

 

If there's anything you think i can help with just shout....good luck!

[sick of it all]

Hi Dipply75

Thanks for the reply.

Yes I have looked through all th debts, and got some charges back etc

And yes that does feel good when you do all that.

I just have queries now before I take another step in my debt management.

Thanks for the advice about the job that really helped.

Kind regards

[sick of it all]

If I do end up going through Bankruptcy, at the moment it would be through LILA. Anyone have any experience of this?

 

Not sure what to do, maybe I should wait till I get a job and then try to have anough money for a trust deed. Anyone any ideas how much that would be per week for a £65,000 debt?

 

Also I live in a house owned by my mother, who doesn't talk to me but lets me live here because of the grandchildren. If I went through trust deed or bankruptcy would I have to involve her? I have no tenancy agreement and pay no rent. What would an IP make of my situation? (my mum is hardly likely to include me in her will, I have at the moment been written out of it in favour of my children)

So stressed by it all!

[IdaInFife]

not personally but there is a couple of threads on here

 

it depends on how much income you have - remember not all trust deeds last for 3 years - they can be extended until all debts have been cleared.

 

It won't involve her as they will do a check to see who the house belongs to anyway and as long as you are not delcaring paying rent etc.

 

We cannot say to you go for xx - it has to be your decision and what you feel right with.

 

here is more info

 

National Debtline Scotland | Debt Advice | Factsheet 01 Bankruptcy

National Debtline Scotland | Debt Advice | Factsheet 22 Debt Arrangement Scheme

National Debtline Scotland | Debt Advice | Factsheet 21 Trust Deeds

 

 

also you can contact your local trading standatrds to speak to a money advisor face to face

 

or even you can call the number on the links as they tend to be the most helpful if you need to speak to someone if you are unsure

 

Ida x

[peapod01]

My partner has a trust deed, we were forced into debt by a set of very unlikely circumstances, we both became very ill because of it and we decided to go down the bankruptcy road, we were advised to think about a trust deed.

 

After looking at it he decided to do the trust deed, for us it has improved our lives no end, when you enter a trust deed, you cannot accumulate any debt, but you pay an affordable payment based on you current income and required outgoings, its a monthly payment for 3 years, he still has a bt phone but he pays it monthly, same with electricity and other regular bills.

 

We also no longer have letters and phone calls bombarding us, no threpts no demands and if we get anything we just call our trust deed people and they kick ass for us.

 

We own our home and the and of the td the only downside is that when we come out of our trust deed they may make us sell our home to release the equity but its not looking likely due to economic down turn, however we are prepared and the upside is, regardless of what happens we are both much happier, we have between 1 and 2 holidays per year (not big expensive ones) we can afford to go out for a nice meal or day out, we can do fun things, we get on better and our health has improved so much that my doctor has stopped treating me for high blood pressure.

 

Trust deeds are not for everyone but for us it has been up to now the best thing we could have done.

 

If you think you may want to do a trust deed my advise is to shop around for a really good company, take a very long list of written questions, we stayed for 4hrs asking questions when most preople take lest than an hr, dont be pushed into anything, dont be afraid to ask your questions and leave to think about it, you need to remember that this is a bussiness to them and they make money from your debt.

 

They take a payment, alot of it goes to them, the rest goes to the other creditors, so you are a customer of theirs as well they will be there when hour ready.

 

Good luck and try not to worry, if your in Scotland there is alot more protrection for you, make sure you get really good help from the best companies you can, if any of them try to rush you, run, if they are happy to do all they can for you good, if you go into a trust deed you are signing up for 3 years, you dont want a people you dont trust working for themselves and not for you.

[sick of it all]

Hi Ida,

Just put three signatures on the bank petition.

Thanks for the advice, I am all over the place!

Tried the CCCS debt remedy and it suggested LILA but it didn't mention Trust Deed, which I was hoping for.

I know LILA get the stress over more quickly but it's far more scarier than a trust deed!

Do you know anyone that has been through LILA? Is it very much different from Bankruptcy?

Thanks also to Peaopd01 for your support and advice.

It's a scarey time!! Glad your happy with your situation and most importantly your health is getting better xxx:)

[IdaInFife]

http://www.consumeractiongroup.co.uk/forum/search.php?searchid=3232672

[sick of it all]

Anyone heard about the fact that sequestration and trust deeds won't go into the Edinburgh Gazette? think the law was just passes in the Scottish Parliament, along with further measures to protect your house.

[Crocdoc]

The above issue is on the cards, but ongoing.