Debt solutions Scotland

While there are some subtle differences between the English debt laws and the Scottish debt laws, in general the basics are very much the same. For those falling into debt it is vital that they address the situation as soon as possible whether contacting the citizens advice bureau for advice or contacting a professional debt counsellor, there is a need to act sooner rather than later.

While the English laws allow independent voluntary arrangements (IVAs) the Scottish equivalent is a trust deed. The main thrust for these two debt solutions is the need to initially give those involved time to reorganise their assets and confirm exactly what they owe, who were they owe and their income. It is only then, once the situation is down in black-and-white, that a viable solution can be created and a proposal put to creditors.

It is then up to the creditors as to whether they choose to receive a proportion of the debt over a predetermined period or they take further advice and potentially go for bankruptcy. In general any company owed money by a third party is highly unlikely to push for bankruptcy without trying the IVA or trust deed route. They are more likely to receive more money without seeking bankruptcy although for some individuals it is possible that an IVA or trust deed could well be converted into a bankruptcy if the longer term situation deteriorates.

It has never been more vital to take professional advice and ensure that you are aware of all options open to you and which ones may be more beneficial to your circumstances.

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