Low income assets, low income bankruptcy proceedings
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The number of bankruptcies in Scotland continues to rise and the government has been quick to appreciate that many potential bankruptcies have low income low asset bases. Hence the authorities have introduced the low income asset bankruptcy system which effectively fast-tracks those with low-income and very few assets, taking away some of the pressures financial troubles can bring.

The definition of low-income is no more than the standard minimum wage, which at the moment is equivalent to £229.20 a week, although pension income and maintenance payments will also be taken into account. The government will also take into account tax credits and any other social security payments which you receive in order to finally arrive at your income. The definition of low assets indicates no single asset worth over £1000 and in total you must not have assets of over £10,000 - this takes into account joint ownership of a home, property or land.

If you qualify under the above conditions then you can effectively be fast tracked on the road to bankruptcy in Scotland which will take away some of the pressure off waiting via the normal bankruptcy and trust deed route. As the number of Scottish bankruptcies continues to rise many consumer agencies have welcomed the Scottish government’s move to bring their regulations more into line with those in England and Wales.

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