Welcome to the forum Valfreya.

Could you let us know if you own any assets, your own home for example?

Money advisors at your local citizens advice bureau should be able to chat you through your options.

Paul

There may be a few options open to you to choose from, Valfreya, but a lot will depend upon your circumstances - e.g. how much you might be able to afford to pay to your debts, whether you own any significant assets.

If you are able to give us a bit more of this type of information then we may be able to help steer you in the right direction.

Hi Valfreya

In general, the viable options in Scotland are

DAS - Interest and Charges are frozen and you repay the whole debt over an extended period.

Trust Deed - Allows you to make a proposal to creditors with a % of the debt to be written off and the balance paid over a 36 month period.

Sequestration - Bankruptcy in other words. Depending on circumstances a monthly contribution would be payable from income.

The best option depends on your circumstances, ie assets, income etc. Best advise is always to sit down and discuss what option best suits yourself.

Mark

Mark

I don't have any assets, I don't own a car or my house. I have no saving and nothing of any value. I have no income of my own, My husband provides a wage.

Thank you or the advice. Should I get in touch the the CAB, Or look for another company to help me make a choice and get detailed advice in making the best choice for me?

Hello Valfreya.

I'd suggest that you read about Low Income Low Asset sequestration (bankruptcy).

This is often abbreviated to LILA.

Without income or assets this is likely to be the best route open to you.

It sounds like sequestration (ie bankruptcy) may be the most appropriate option for you, Valfreya. If you have no income nor assets then you should be discharged after 1 year without having to pay any contributions.

Is a big step though so best to get some expert advice on your particular circumstances. As suggested above, a money adviser from your local citizens advice bureau or from your local authority wouls be able to advise and probably assist in completing the necessary paperwork for you.

Hi Valfreya and welcome.

Well done on taking steps to ask for some help and guidance in relation to trying to deal with your debts. I know it can seem very overwhelming when trying to do your own research and work out what information relates to you and what options you have available.

As Mark said you have 3 main options available in Scotland to deal with you debts but from what you have described it may be the case that you consider Sequestration (Bankruptcy) and the LILA route as TDA & Kevin suggested.

Sequestration isn't as intimidating as you would think and for someone in your situation will be fairly straight forward.

I assume you are unemployed? Are you claiming any benefits?

Also, the debt that you have is this in your name, your husband's name or joint with him?

You can speak with a local money advisor in your area who may work for a Citizens Advice or Council as Paul has suggested or you can speak with an advisor who works for a private firm.

Will my husbands, income be a problem for me? since that is the only income that comes into the house.

I do not work, and I am claiming WTC with my husband, It is a joint claim, Other than that I have no income what so ever. the debt is all in my name, it is from before I was married.

Hi Valfreya

From the information provided, sequestration would appear to be the best option as you have no income to support a contribution. Your husband's income should not be an issue.

You can apply under the LILA scheme (Low Income Low Assets) The CAB should be able to assist with completing the forms and guide you through the process.

Mark

Thank you. How long does the process usually take? will I need to provide proof of my lack of income, what about fees? how much will I have to pay in fees, and how long will the LILA be in effect? and how will that affect any credit related dealing I will have in the future. For example. I don't have my own bank account and I am currently using my cousins. I will need a bank account of my own at some point, will the LILA affect that. I also have the problem of having no photographic ID, and having difficulty when asked for ID.

I know I am asking a lot of questions, but I would like to be as informed as possible before taking any steps. again thank you for your help

The process is to complete a petition and send this to the AIB's office with a cheque for £200. It will be processed in a couple of weeks. If you have no income, then there will be no contribution and therfore no further fees.

There is no problem with you having no bank account and the AIB or whoever deals with the case will need to satisfy themselves re ID. Sequestration may have an effect on the ability to open an account unfortunately.

As for credit rating, this will show for 6 years.

Mark

The ability for a bank account will that be in effect while the sequestration is in effect, or after as well? and will this stop me from getting credit too, not that it bothers me if it does. since I don't have credit cards, or contracts anyway. I try to avoid any form of credit whenever possible.

Mu Husband is trying to make his bank account a joint account, should I do this before I take action?