I live in scotland, is it true i can't have an iva

[booboo]

I've heard that because i live in scotland, i can't have an iva, is this true? Does anyone know what my options are? Please help!

[Oliver]

Hello booboo

You are correct that you can not propose an IVA in Scotland but do not despair as there is a Scottish Equivalent called a Scottish Trust Deed. The principles of this are very similar to an IVA in that you will have to pay as much as you can for a period of time and then all your unsecured debts will be legally written off. There are some differences though the main being
- Maximum 3 year payment period (IVA's have a 5 year max payment period)
- If you are a property owner it is likely that you will have to put forward all the equity you have in the property and you will then pay whatever Disposable income (Income less reasonable living costs) a month.
- If you do not own a property you will have to provide a minimum Disposable income of £200 per month.

Scottish Trust Deeds are not the only way to deal with debt difficulty in Scotland. Consolidation or Sequesation (the Scottish equivalent of Bankruptcy) may be a better solution for your personal circumstances so I would recommend that you contact an expert for further advice.



Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[booboo]

Hello booboo

You are correct that you can not propose an IVA in Scotland but do not despair as there is a Scottish Equivalent called a Scottish Trust Deed. The principles of this are very similar to an IVA in that you will have to pay as much as you can for a period of time and then all your unsecured debts will be legally written off. There are some differences though the main being
- Maximum 3 year payment period (IVA's have a 5 year max payment period)
- If you are a property owner it is likely that you will have to put forward all the equity you have in the property and you will then pay whatever Disposable income (Income less reasonable living costs) a month.
- If you do not own a property you will have to provide a minimum Disposable income of £200 per month.

Scottish Trust Deeds are not the only way to deal with debt difficulty in Scotland. Consolidation or Sequesation (the Scottish equivalent of Bankruptcy) may be a better solution for your personal circumstances so I would recommend that you contact an expert for further advice.



Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[booboo]

Thanks Oliver, I live with my parents, can you tell me if i managed to get a scottish trust deed would they be affected by this arrangement. I will try anything except bankruptcy, it was hard enough telling my mum about my financial worries i don't want to add this to her

[Oliver]

Your welcome booboo

If you are accepted for a Trust Deed this will have no impact on your parents at all. If you pay rent at home you may have to ask them for a letter confirming the amount that you pay but that is all.



Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[booboo]

Can i go to see someone about this outside of the town where i live? I'm not in arrears with any of my creditors yet, but i have struggling to meet my payments on time, will this affect my chances, do you think?

[Oliver]

We use an IP firm in Glasgow whom are very good, they may even be able to do things over the phone with you.

If you are insolvent (i.e you can't physically afford to pay your creditors and afford to live reasonably) you will be eligible for a Trust Deed.

If you are not insolvent then another form of debt solution may be better for you.


Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[booboo]

Thank you so much Oliver, I'd appreciate going to Glasgow. I earn (after tax) about £700 and once I've paid my bills I'm left with about £10 if I'm lucky. Can you give me the name of the firm in Glasgow please and I'll arrange to go see them. Can I still pay my bills until then as i don't want demanding letters arriving at the door.

[MelanieGiles]

At present the only solution for you in Scotland is to propose a Trust Deed to your creditors. There are moves afoot to bring Scottish insolvency legislation in line with English, but no firm dates set yet and likely to be a couple of years before we get anywhere.

I don't have much experience of Scottish insolvency, but I gather that Trust Deeds tend to be more flexible than IVAs and are a more simpler process in terms of the voting process at creditors meetings.

Does anybody know any good Scottish IPs out there?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Sure thing the firm is called Martin Aitken and Co and their phone number is 0141 272 0000.

Good luck and please let me know how you get on?



Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[booboo]

Thanks Melanie, Oliver said that they use a good IP firm in Glasgow so I'll get their details from him and take it from there. I apprecaite all your advice, i'll let you know how i get on. Thanks again,
Booboo

[booboo]

Thanks Oliver, Should i go through your firm first or is it okay to contact them direct? I'll let you know how i get on.
Thanks
Booboo

[Oliver]

You are more than welcome.

That is entirely up to you booboo. Thomas Charles and Co offers a service which will provide you with a designated Debt Adviser who will be able to offer you advice on which Debt Solution is the best for your individual circumstances. If the best option is a Scottish Trust Deed then your Debt Adviser will then be able to assist you in preparing the relevant Statement of Affairs and supporting evidence needed for the IP to propose a Trust Deed to your Creditors. If this is a service which you think you may benefit from please feel free to browse our website and then contact us.






Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[booboo]

Hey Oliver,
Im sorry to be a pest but can I just ring these people up and ask for help? I've never been in trouble before and I'm unsure of what to do. I feel sick at the thought of my creditors saying no. I have about £30,000 of debt on credit cards, catalogue and an overdraft. My main creditor is Monument at £9000. Can i say that i got their number from Thomas Charles?
Thanks
Booboo

[Oliver]

You are not a pest at all BooBoo

Usually we would help prepare a client's case before it got to M.Aitken and Co but I am sure there would be someone there to talk you through things.

If you feel you need more of a helping hand why not contact us and have one of our Debt Advisers assist you through the process.

Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com