bankruptcy

[ritchard]

HOW DO I GO BANKRUPT AND WHAT IS INVOLVED IN DOING IT. please do not refer me to fool.com as i cannot find answers or be able to post a question there. THANKS

[zmudge]

More useful and less painful than bankruptcy is a Scottish Trust Deed which is a legal process giving persons living in Scotland who are struggling with unmanageable debt the opportunity to make a formal proposal to their creditors to clear their debt. All creditors are circulated with the proposal and providing no creditors who have claims totalling greater than 1/3 of the total debts vote (within five weeks) to reject the proposals then the Scottish Trust Deed becomes protected and legally binding upon all of the creditors that were circulated. Through this creditors are often paid less than actually owed. The pressure of being in debt is reduced as all correspondence, including  queries from creditors, is handled by the Trustee. Equity from a home is released into the Scottish Trust Deed usually as part of the final settlement. However, there are mechanisms that can be put in place to protect a home such as "buy-back" or extra contributions. Entry into a ScottishTrust Deed is not prohibited if a person has CCJ's against them. It makes no difference whether a person is a tenant or homeowner or still living with parents. A persons credit rating is adversely affected by going into a Scottish Trust Deed. The Trust Deed usually lasts for 3 years. The CAB will give you further details and start the formalities if you opt for this.
 
 
 

 
  


  
 
  

[ritchard]

z mudge please let me know if the scottish trust deed means i still have to pay any money or can get poscessions taken away? what do you mean by proposals?

[AlanS107]

I don't know why you cannot use www.fool.co.uk. I have just visited the site and there are lots of messages there that you can read about bankruptcy. You have to sign up to ask questions but it is free to do so.

However, if you want alternatives, go to www.insolvency.gov.uk which has lots of useful information.

Another site that may help is www.kronos.moonfruit.com.

[scorpio61]

You must have a saleable asset or a monthly income which allows the creditors a return of a minimum of 8 pence in the pound AFTER the IP (insolvency practitioner) has taken his cut. As a rule your normal monthly contibution should be no less than �150 per month equating to about �11500 worth of debt after the IP's charges (as a guide �170 for �20k - �190 for �30k etc) If you own your own home be VERY careful. If there is not too much equity in the property try to get it excluded from the proposals. To do this it is normally possible to offer a lump sum of �500. Whatever it takes, get the �500 from wherever you can then whatever happens in the future at least your house is safe. Anyone tells you any different then call me, we work this principle on a regular basis. www.chambersmoore.co.uk

otherwise, good luck