Discharged in England 13 years ago, Can I go bankrupt in Scotland?

[rrfcfan]

My wife and I were discharged from bankruptcy in England 13 years.

 

Since then we have moved to Scotland, and once again, we have got ourselves in financial difficulty.

I have visited a number of websites dealing with debt, and bankruptcy seems the only viable option. There are 6 creditors with a total amount of £15000 between ourselves.

As we were discharged bankrupt in England 13 years ago, can we become bankrupt in Scotland?

[bluedogx]

Yes. There is a five year rule here, not sure what is in England.

 

There are 3 ways in

 

1. Having an expired charge for payment or stat demand

2. Qualifying under the low income low asset route

3. A certificate of bankruptcy

 

Do you have wages, assets worth £1000 or more?

 

B

[rrfcfan]

Thanks B.

 

I have no assets work over £1000. My net monthly salary is just over £1000., after paying all the essential bills (Rent, CT, Travel to work, Elec., Gas etc.) I have very little disposable income.

 

Will this mean I can qualify for low income, low asset rule?

[bluedogx]

Don't think so. Your gross wages have to be 40hrs times min wage or less so £1027.86 pm.

You would need a money adviser to do a certificate of bankruptcy for you.

 

If you have some disposable income you could think about a DAS? Debt arrangement scheme payment plan http://www.moneyscotland.gov.uk or a trust deed?

 

B

You might have to make a contribution to a bankruptcy anyway.

[rrfcfan]

Thanks again.

 

Trust Deed seems my best option.

 

Is it possible to put mine and my wifes debts on the same application?

[bluedogx]

Are you sure? Read info on money Scotland and national debtline (Scotland) as it's easy to make a decision you will regret.

 

I think you should see a money adviser - cab or council - to discuss your options.

 

You would need 2 trust deeds. If you could tell me more I could give you more info?

 

B

[rrfcfan]

Thanks for the quick reply.

 

My wife has debts of £6000 and myself £9000.

 

Together we have less than £100 of disposable income every month. We are council tenants and have no car, my wife is a full time mum.

[bluedogx]

A payment plan would be too long then. If you get working tax credit you would be eligible for a LILA if you dont have assets worth £1000 or a total of £10,000.

 

Otherwise you could do a certificate of bankruptcy. Find your local money adviser on money Scotland web site and make an appt. They will sort you out. Cost is £100

each for bankruptcy and a possible small contribution but they will

check your level of expenditure.

 

 

 

You could go onto cccs or payplan and do your own income expenditure

[bluedogx]

Sorry- cccs or payplan let you do income expenditure forms on their web site and will tell you what is acceptable.

 

B

[rrfcfan]

Thanks once again,

 

Yes, we are in receipt of CTC & WFTC. LILA is the best way to go. Tried CCCS and their recommendation is Bankruptcy, simply because it will take nearly 15 years to pay off the creditors.

[bluedogx]

You and your wife don't have to take the same option but with so little disposable income between you it probably would be best.

 

You can do it yourself - aib.gov.uk will give you info but I think it's better to discuss with a money adviser. If you can make a contribution you can pick an IP to deal with it but please don't pick one from the yellow pages. There's lots of pitfalls you need to be aware of.

 

B

[rrfcfan]

Thanks once again Bluedogx,

 

I have looked at the AIB website and we will be both eligible for a LILA .

 

The application pack is vaguely similar to the English one, the guidance notes are a great help.

 

I will let you guys now how we get on.

 

My wifes will be submitted 1st.

 

Thanks again guys!!!:-D:-D

[bluedogx]

Good luck

[rrfcfan]

Wow ! That was quick! AIB received my wife's application on the Friday and was subquently sequestrated one week later.

My wife is now feeling a lot better as the escalating debt problems was affecting her health and well being.

My application will be sent next week.

I can't believe how effecient the whole process is.

Thanks again for all your help.

[bluedogx]