Need A Little Help If Possible

[WhatALife]

Hey all, new here, have built up a fair bit of debt in the last few year, some of it was my own fault, some of it due to loss of a business and some of it due to loss of a job.

 

My debts are as follows:

 

Bank of Scotland/Blair Oliver & Scott - £13072.00 (Unsecured personal loan - In default).

Council tax arrears/Being handled by Sheriff Officers - £1184.58 (For 07 to 08 & 08 to 09 - Surprisingly I have no arrears for 09 to 10).

BT/Handled by DCA - £596.70 - Business debt from 3 years ago.

Scottish Power - £341.38 - Business debt from 3 years ago.

British Gas - £228.28 - Debt from previous address.

BT - £159.74 - Debt from previous address.

BT - £137.69 - Debt from previous address.

Ebay - £90.73

 

Total £15811.10

 

I have kept up communications with my creditors, kept them informed when I changed address etc.

 

Problem I've got is that I've been making payments to some of them for nearly 3 year now but have barely made an impact on how much debt I have due to Bank of Scotland adding interest to what I owe them despite several requests to freeze interest.

 

Council Tax Arrears

 

This debt is in the hands of Sheriff Officers, I think their now getting impatient as I have received a letter this week saying "we are instructed to commence enforcement action by way of Arrestment and/or Attachment of your effects. Where appropriate our solicitors may be instructed to raise a petition for your sequestration."

 

What do they mean by way of Arrestment and/or Attachment of your effects?

 

I wrote a letter back to them asking for more time to enable me to seek advice.

 

Bank of Scotland - Unsecured personal loan

 

At the time I took the loan, I was in full time employment, also had a business which was doing good but lost my job and eventually the business failed... the loan is now in default. They are adding more interest on than I can afford to pay each month.

 

Scottish Power

 

This debt was in the hands of a DCA (LCS) but I havent received any letters from them since January 2009, I have made 3 payments to them since Jan 09 but none of the cheques were cashed, I have also wrote several letters but no reply. Any advice on what could be happening here?

 

At present I'm in full time employment (temporary), but my income is less than my expenditure, I rely on help from family to put a meal on the table, pay bills, rent etc. I also own a small limited company, it isn't a big earner but also helps financially as I receive a wage from this too. The LTD company doesn't have any debt, doesn't make a lot of money (hence why I'm also in full time employment).

 

I currently live in a furnished private rented home. I'm not tied down to any long term lease or anything so looking for somewhere with a cheaper rent but very few homes round here that's cheaper.

 

Apart from the clothes I wear I don't have much in the way of personal assets, all I really have is:

 

Car - non runner, been off road for nearly 2 year, worth scrap value.

Van - occasionally need for work and help with LTD co, worth £500 maybe.

Laptop - old one, don't know what it's worth but doubt it's much.

Some tools - Under £100's worth.

 

I feel my debts have dragged on too long, I'm now at the point I feel that's affecting my personal well being (can't sleep, being treated for depression, I'm kinda finding myself not answering the phone or wanting to open my mail as I know what it'll be about). Basically I'm just seeking some advice on what to do now, I think I've done what I can but just need a bit help or advice on what to do next.

 

I apologise if this post is a bit long or doesn't make sense, I'm no good at this but do have a tendency to drag on a bit.

 

Your help or advice would be more than appreciated.

[IdaInFife]

Hiya ,

 

and welcome to CAG.

 

You have a few options:

 

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

National Debtline Scotland | Debt Advice | Factsheet 04 Enforcing A Debt Against You By Diligence

National Debtline Scotland | Debt Advice | Factsheet 21 Trust Deeds

National Debtline Scotland | Debt Advice | Factsheet 01 Bankruptcy

 

 

if you have no assets and no dependants within the home you might consider BK ( which normally alwyas advisd as a last resort)

[WhatALife]

Hello IdaInFife, thanks for the reply

 

Just had a quick look at the links provided, will have a better read through them in the morning though, I don't take info in too well when tired.

 

Just worked it out that with what I have left at the end of the month (on the months I've got something left over that is), would take me about 458 months to repay my debt - that's without interest and charges and anything else that gets added on

[Moonlighter]

Hi WhatALife

 

I'd strongly recommend you make an appointment to see a local Citizens Advice Bureau or local authority money advice service, or indeed give a local Insolvency Practitioner a call to chat through your situation. There are people out here who are trained to guide you through the maze of debt solutions and point you in the right direction. You can google debt advice in your area to find such advice, or check out Yellow Pages etc.

 

Good luck

 

G

[WhatALife]

Ok, had a better look through the factsheets, got a few questions though.

 

Regarding a Trust Deed, if I was to go into a Trust Deed, would my employer and landlord be informed (I have no rent arrears)?

 

It says I can't be a director of a limited company while in a Trust Deed, I own a small limited company and I'm the sole director. Would the company automatically be struck off or would I have to do this before going into a Trust Deed and would I be allowed to continue trading as a sole trader?

 

It states that my assets and property would pass to a trustee to be administered, I've worked it out that my assets are probably worth £1000 at most, would I still be eligible for a Trust Deed with a low value of assets?

 

I use my van for work, I also use it to earn a little extra income outside of work, van is only worth £500 at most (on a good day), would this be taken off me? Would I have to prove I need it?

 

I pay van insurance monthly by direct debit, also have broadband. Would I be allowed to keep these? Would the broadband be seen as a luxury item and cancelled?

 

In the meantime I'll try to get advice from Citizens Advice, but finding it hard to find somewhere that's open at a time when I don't work (boss isn't too understanding when taking time off for such things, asks a lot of questions too).

 

I appreciate your help.

[WhatALife]

Ok, made the time to see Citizens Advice, also spoke to an Insolvency Practitioner via email and phone. I have also managed to shuffle a few outgoings about and have a little extra left over each month... should of done this a long time ago, would have saved myself a lot of problems.

 

Spoke about Trust Deeds and Sequestration, I can't go into Sequestration through LILA, my assets are low enough but the income is a bit high.

 

I spoke to someone the now about Trust Deeds, an Insolvency Practitioner will call me tomorrow evening to discuss it further and hopefully take it to the next step.

 

Thank you all for the help, it's been greatly appreciated, I will update the post after tomorrows phonecall

[WhatALife]

I've spoken with an Insolvency Practitioner, they don't think they would be able to take me on a Trust Deed as it's unlikely it would become protected unless I could raise my income which would be a struggle, if at all possible at the moment.

 

That really leaves Sequestration but at the moment I have no way of proving Apparent Insolvency.