Massive debt in Scotland

[parlex]

Hi there,

 

I have accumulated over 85k in loans and credit cards and have just lost my job and no way to pay back.

Is it possible for me to make myself bankrupt?

 

 

I live in Scotland.

 

 

Any help very much appreciated.

 

 

I don't see any other way out...

 

Many thanks,

[maroondevo52]

Hello and Welcome,

 

Do you own any property or have any other assets,

[havinastella]

Moved to Scottish forums for you.

[parlex]

I am married and the house is solely under my wife's name, she bough the property before we met. My name has never been on the mortgage. I have no other assets apart from the usual household stuff.

[dx100uk]

ok one step at a time.

 

 

can you list your debts

and who owns them now please

 

 

you credit file can help here too

 

 

dx

[parlex]

I have two loans of 25k each and another 35k on credit cards.

[dx100uk]

full details please

 

 

what is the debt

when did you take it out

who was the original creditor

who owns the debt now

the defaulted date.

 

 

dx

[parlex]

The loans were taken out 6 month ago, 2 x loans and 6 credit cards. I'm not sure what do you mean by "who owns the debt now" ? I have the debt under my name, I speak solely about myself here. Also, what does the "defaulted date" mean? Sorry for being such a novice...

Edited February 19, 2015 by citizenB

[dx100uk]

aw that's sad so they are all very recent. since apr 2007?

 

 

I think its called sequestration in scotland

 

 

though you might want to investigate

a debt relief order

or

trust deed

 

 

http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?176-Dealing-with-Debt-in-Scotland

[maroondevo52]

I'd think Sequestration would be your best option,

with an award of sequestration this will allow you to write off most of what you cannot afford to repay,

unsecured loans and credit card debts will be dealt with by your Trustee.

A Sequestration is under the control of the Scottish Government and is intended to help people who are struggling with their finances.

 

Once Sequestrated a creditor will have to submit to the sequestration and stop chasing you for any monies due,

creditors of unsecured debts such as credit or store cards, loans and overdrafts must leave you alone and deal only with your Trustee.

 

All your unsecured debts will be bound in your sequestration.

That does not mean they are just automatically wiped out,

if you have assets which could be released to pay some money to your creditors your Trustee will take action,

which could include recovering them and selling them.

If you are able to afford them, you will be required to make payments towards your debts from any income for 36 months.

 

Although you are discharged from sequestration after 12 months you will continue to make your payments as long as you can afford them

until the 36 months are completed, your Trustee will deal with your creditors and you won’t have to.

 

Your sequestration will stay on your credit report for 6 years after you are discharged from the sequestration

which depending on your circumstances is normally 12 months.

[havinastella]

Is there any chance the OP may come under suspicion for fraud?

 

They take out 85k of loans 6 months ago and wants to become bankrupt soon after?

 

Just asking!

[maroondevo52]

Is there any chance the OP may come under suspicion for fraud?

 

 

Not got a clue, it's a massive amount of cash to go missing in 6 months, explanations would be asked for.

[dx100uk]

irresponsible lending?

 

 

dx

[parlex]

Thank you maroondevo52 and dx100uk , this is very much appreciated.

 

I'd think Sequestration would be your best option,

with an award of sequestration this will allow you to write off most of what you cannot afford to repay,

unsecured loans and credit card debts will be dealt with by your Trustee.

A Sequestration is under the control of the Scottish Government and is intended to help people who are struggling with their finances.

 

Once Sequestrated a creditor will have to submit to the sequestration and stop chasing you for any monies due,

creditors of unsecured debts such as credit or store cards, loans and overdrafts must leave you alone and deal only with your Trustee.

 

All your unsecured debts will be bound in your sequestration.

That does not mean they are just automatically wiped out,

if you have assets which could be released to pay some money to your creditors your Trustee will take action,

which could include recovering them and selling them.

If you are able to afford them, you will be required to make payments towards your debts from any income for 36 months.

 

Although you are discharged from sequestration after 12 months you will continue to make your payments as long as you can afford them

until the 36 months are completed, your Trustee will deal with your creditors and you won’t have to.

 

Your sequestration will stay on your credit report for 6 years after you are discharged from the sequestration

which depending on your circumstances is normally 12 months.

Edited February 19, 2015 by parlex

[dx100uk]

the house is TOTALLY safe.

 

 

it is nowt to do with you.

 

 

post 7 properly answered would be useful

 

 

I know you might not think so

but

so much credit being given in such? a short period

smells to me.

 

 

even if you were earning the money.

 

 

dx

[parlex]

I'm not sure what do you mean by "who owns the debt now" ?

Edited February 19, 2015 by parlex

[parlex]

Is there any chance the OP may come under suspicion for fraud?

 

They take out 85k of loans 6 months ago and wants to become bankrupt soon after?

 

Just asking!

 

Is there another option from not going bankrupt when you are jobless?

Edited February 19, 2015 by parlex

[parlex]

so much credit being given in such a short period smells to me.

dx

 

What do you mean by that? What is so unusual about it?

[dx100uk]

have you looked at your credit file

noddle below is free

 

 

it will tell you who owns the debt

if its still with the OC [Original creditor]

or if its been sold to a DCA [Debt Collection Agency]

 

 

and if its been defaulted

 

 

.............

Edited February 19, 2015 by maroondevo52
Removed quoted text

[dx100uk]

What do you mean by that? What is so unusual about it?

 

 

its called irresponsible lending [not you at fault - the lenders for giving it to you]

 

 

they should be carrying out affordability checks before lending

 

 

dx

[citizenB]

I'm not sure what do you mean by "who owns the debt now" ?

 

When debts are defaulted on the original lenders generally want them off their books and sell them on to 3rd party Debt Collectors - although I see you only took the 2 loans out about 6 months ago, so I doubt they would have sold them on yet.