Facing sequestration and terrified!

eklynne

Ok, deep breath, here goes!

I am being sequestrated by my council for council tax arrears which amount to over £5,000. This debt has accumulated over 12 years, mostly with my ex for the home we jointly own. We seperated 4 years ago, and I still live in the home with our daughter. I have lost contact with my ex, even though his name is still on the mortgage, I have struggled to keep my home on my own, but obviously things have had to slip. I have no mortgage arrears.
I am currently a University student, on a very low income and I am worried sick about where my daughter and I are going to go when we (inevitably) lose our home. Will I be given time to find somewhere new or will I be turfed out after 14 days? We live in Scotland, is the law different here?
I am due in court on Monday. I really hope someone can help. I have no close family and have no one to talk to about this.

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting post http://forums.moneysavingexpert.com/showpost.html?p=17625551"][/EMAIL]

deedee_3

Hi and welcome to the board.

I am very sorry that I have no experiance of Scottish Bankruptcy law but this is the information from the Bankruptcy Help sticky at the top of the board.

Information for those in Scotland.


Advice on bankruptcy.

• Consumer Credit Counselling Service (Scotland) - Website: CCCS Telephone: [IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_l.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/famfamfam/gb.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/arrow.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG]080...[IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_r.gif[/IMG]
• National Debtline (Scotland) - Website: National Debtline Telephone: [IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_l.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/famfamfam/gb.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/arrow.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG]0808 8...[IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_r.gif[/IMG]
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline Scotland - Website: Business Debtline Telephone: [IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_l.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/famfamfam/gb.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/arrow.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG]0800 1...[IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_r.gif[/IMG]
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

.
.
Accountant in Bankruptcy (equivalent of the English Insolvency Service).

Main website: www.aib.gov.uk

For general queries about insolvency (but not debt advice) you can contact: General helpline - Tel: [IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_l.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/famfamfam/gb.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/arrow.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG][IMG]chrome://skype_ff_toolbar_win/content/space.gif[/IMG]0845 762 6171[IMG]chrome://skype_ff_toolbar_win/content/cb_transparent_r.gif[/IMG] - Email: [EMAIL="Helpline@aib.gsi.gov.uk"]Helpline@aib.gsi.gov.uk[/EMAIL]

Bankruptcy

Low Income Low Assets.

Debt Arrangement Scheme

Trust Deeds

Bankruptcy after 1 April 2008

• DAIP - Debt Advice and Information Pack
• Debtor's Guide
• Creditor's Guide
• Bankruptcy Restriction Guide
• Trust Deeds Guide

Bankruptcy before 1 April 2008 (follow for links)

National Debtline Factsheets (Scotland)

• Bankruptcy
• Credit reference agencies
• Debt Arrangement Scheme (DAS)
• Debt management plans
• Enforcing a debt against you by diligence
• Fines in the district & sheriff courts
• Harassment
• Homeless - what should I do?
• How can I complain about my lender?
• How can my landlord end my assured tenancy?
• How to avoid debt at christmas
• How to deal with business debts
• How to deal with Hire Purchase debt
• Liability for debts & the Prescription & Limitation (Scotland) Act 1973
• How to make offers in full & final settlement
• Mortgage shortfalls
• Negative equity - What can I do if I want to move?
• Recall of decree
• Recovery of council tax
• Time orders
• Time to pay directions & orders
• Trust deeds
• What happens when a creditor takes court action against you?
• What if a creditor refuses my offer of payment?

skylight

Hello there!

Yes, the law is different in Scotland, but although the names of things are slightly different and the processes are not quite the same, bankruptcy is fundamentally the same thing here, there or anywhere.

The one thing that does not change is the support on these boards.


As posted above, call one of the debt charities for Scotland. They are all busy at the moment, so you may find that you have to just keep hitting re-dial. Get some advice from them about it and research on BR in Scotland on the National Debtline website - that is very good for booklets (pdfs).

smokey112

eklynne
We have just been discharged from Sequestration on October last
year - after 3 yrs or BR - we kept our home
If you have any Questions please ask and I will do my best to
help.
Cheers
Ang
xx

eklynne

smokey112 wrote: »

eklynne
We have just been discharged from Sequestration on October last
year - after 3 yrs or BR - we kept our home
If you have any Questions please ask and I will do my best to
help.
Cheers
Ang
xx

Hi Ang,
thank you for your reply.
The thing I am worried about most is keeping my home. I have no other debts and the only outstanding amounts are to the council tax. It is roughly £5750. I have been managing my mortgage on my own for 4 years, it is not in arrears and is affordable to me at £340 per month.
How did you manage to hold on to your home? That is my biggest concern as my daughter is about to start her standard grade year and the chance of being rehomed around here is virtually nil. I really don't want her to have to move schools.
Many thanks!
Lynne.

CC_Scot

Hi Eklynne

I have also been through sequestration and was discharged in August 2008 (after 3 years) and kept my home.

If you have any equity in the property then you need to pay the value of this to the Trustee and that will let you keep yor home. We did not think we would be in a position to do this as we needed £25k, but a family member paid it for us (which was a complete shock as we did not expect they would be at all understanding).

I am not sure if you would pay less, as your ex is still on the mortgage but call one of the debt charities and they will be able to help.

Good luck

CC

coolcait

Hiya eklynne

A quick reply for now.

How much could you afford to put towards paying off your Council Tax debt? It might be that the Debt Arrangement Scheme could help you.

Under DAS, you make agreed payments monthly (or weekly). Your creditors have to freeze interest, fees and charges. And they can't take any kind of court action against you. Your home would be protected.

There's more info on this website: www.moneyscotland.gov.uk. You'll also find the register of DAS approved money advisers. I'd recommend that you have a look and see if there are any in your area, and see if you can make an appointment to see one urgently.

You might also want to think about formally advising the DAS Admininstrator that you are thinking about DAS. If you do this (people talk about 'putting in an intimation'), then you will get some protection from court action for a period of 6 weeks from the day the DAS Administrator records your intimation.

It would still be technically possible for the council to sequestrate you if you only have the intimation, and not a full DAS. But, if you put in the intimation, and take the DAS Administrator's letter along to the court with you, there's a good chance that the sheriff will continue your case for a few weeks. Which will give you the chance to take further advice.

HTH for now

eklynne

CC_Scot wrote: »

Hi Eklynne

I have also been through sequestration and was discharged in August 2008 (after 3 years) and kept my home.

If you have any equity in the property then you need to pay the value of this to the Trustee and that will let you keep yor home. We did not think we would be in a position to do this as we needed £25k, but a family member paid it for us (which was a complete shock as we did not expect they would be at all understanding).

I am not sure if you would pay less, as your ex is still on the mortgage but call one of the debt charities and they will be able to help.

Good luck

CC

Thanks for the reply.
This doesn't make any sense to me, there is about 40k equity in my home, if I could afford to pay that to a trustee I could afford to pay off the debt and I wouldn't be being sequestrated in the first place. Maybe I've picked you up wrong?
Also, after having a long hard think about things, I have decided to allow the sequestration to go ahead. One thing, can I go straight ahead and open one of these co-op accounts before the court date? I'd like to be prepared.

Thanks again for everyone's input, it's been invaluable.

smokey112

sorry Eklynne
couldnt get on comp in the house last night

As CC Scot says if you have equity in your property the Trustee
may ask you to re-mortgage to acheive the £5700 you owe in CT - is
this possible for you to do ?


We had no equity in our home so only had to pay the trustee £500 each for
him to discharge his "Interest" in the property

HTH
Ang
xx

LOUISE22_2

Seperate to the BK advice, have you told your Uni, as they may offer funding like the Access to Learning Fund, its a non payable grant for students with finanical difficulties, priorty case if you are a single mum with mortgage. might clear those CT debts x

eklynne

Hi Louise,
yes, the Uni have been extremely helpful and did help me make my last 3 mortgage payments via the hardship fund, which was a total godsend. I have decided that I am just going to let the sequestration go ahead and I am in talks with my local housing office about accomodation should I lose my home.
Feeling a lot brighter about stuff already.
Thanks everybody.

Also, Ang, I am not in a position to remortgage, the loan is in me and my ex partner's name and he's disappeared off the face of the planet! My credit rating is quite poor also. I am now looking at this whole mess of a situation as a way for a clean break and fresh start for my daughter and I. Trying to stay positive!!