Sequestration isn't the only solution to those struggling with debts in Scotland. We can offer a trust deed, which could see you debt free in just 3 years, and have interest and charges stopped.
Please see our Trust Deed Questions page for more information, or enquire online to talk to a trained advisor
The law in Scotland relating secured and unsecured debts is different from that of England and Wales. For that reason, if you living in Scotland and are in debt and considering Debt Management, it is vital that you speak with someone local to you.
What is a Debt Management plan? A debt management plan is a method of repaying debts for those who are struggling to meet the repayments on their credit cards, loans, store cards, catalogues and other forms of debt. A Scottish Debt Management plan (DMP) is a repayment plan managed by a debt management company. The Debt Management company will help you to work out how much you can afford to pay back each month. The company will then contact your creditors and negotiate with them on your behalf. If the company agrees, you pay the debt management company the monthly repayment figure and they pay it on to the creditors who are owed.
If you have more than five thousand pounds worth of debt, then you could be eligible for a debt management plan in Scotland. You should also owe money to three individual creditors and have an income of a minimum of one hundred pounds per month, in order to cover the debt repayment.
If the creditors refuse to agree to this, then it may be possible to enter into a DAS, a Debt Arrangement Service. This allows the debtor to make one payment to the company running the DAS, and they divide that amount between the various creditors. Once a DAS have been set up, and the debtor's payments are all on time, the creditor cannot make the debtor bankrupt or take them to court.
Under neither of these schemes is the creditor obliged to freeze or lower the interest that is being paid on the outstanding debts. However, this is a step that you can take by writing to them and asking for their assistance in getting you out of debt.