Going br in scotland.

kduffy101

hi ,im from scotland+im about to go br,any help would be great.
£28000 c/cards+£15000 loans.
just been made unemployed(jsa),moving in with my sister.split from wife,house just sold(no profit).
whats the first steps i need to take?
will i need statements from cards?
if i go br under lila scheme,then get a job in the future will i have to pay the money back?
thanks all.

mustbedebtfree

Hi

If you go down the LILA route you would not be made to pay anything back if you found a job.

All you maybe would have to pay would be an IPA. This would be off of any surplus you had left after paying all reasonable living costs.

Your first stop should be to one of the debt charities

I found National Debtline very helpful with Scottish queries

kduffy101

ok, so if i go BR under LILA route,then 3 months down the line i get a job how much surplus are you allowed before an IPA?
is CAB a national debt charitey?i was thinking of call them first.
thanks

mustbedebtfree

That i am not 100% sure about. In England its£99, not sure if that exsists here

National Debtline are a seperte charity from CAB, Feel free to call them both

kduffy101

has anyone in scotland had a similar experiance?????????

kduffy101

in scotland do you go to court when you go BR?
do you go to see OR?
ive just heard that they come out to your house to see you,
has anyone heard of this?
thanks

mustbedebtfree

kduffy101 wrote: »

in scotland do you go to court when you go BR?
do you go to see OR?
ive just heard that they come out to your house to see you,
has anyone heard of this?
thanks

No one comes to your house RE bankruptcy

You fill in your forms send them to AIB and then they call you to go through your SOA and thats pretty much it

Someone from AIB petitions to the court on your behalf

coolcait

Hiya kduffy

I think the answers to your questions all start with "it depends...".

It is possible for trustees to come to someone's house after they go bankrupt but it depends on how they went bankrupt, and who becomes trustee.

If you go bankrupt under LILA, your trustee will be the Accountant in Bankruptcy. It's extremely unlikely that they'll come to your house to interview you (I'd say 'They won't come' but - sod's law - they'd probably go and visit someone as soon as I said it!). They might ask you to come to their offices for interview, but again that's very rare.

If you go bankrupt because you're 'apparently insolvent', AiB will be your trustee, but they might get an insolvency practitioner to deal with your case. The IP is supposed to interview you, and might come to your house to do it. I think that a lot of them are more likely ask you to come to their office

If a creditor makes you bankrupt, and AiB is appointed trustee, all of the above works the same way. If an IP is appointed trustee, then they're expected to interview you, and may be more likely to interview you in your home (though they might still just ask you to come to their office).

If you go bankrupt under LILA, AiB won't always call you to go through your SoA. They check about 10% of cases, so it depends if you get picked or not.

Since last April, it's actually AiB who awards bankruptcy if you apply for it yourself. So it doesn't go near the courts at all (creditors do still have to go through the courts though).

As for IPAs, it's not so clear cut as in England, I'm afraid. You won't find any tables setting out how much you can spend on your SoA, and you won't find any tables working out what percentage of your surplus you have to pay as an IPA.

Under the Scottish system, your income doesn't 'vest' in the trustee, so arguably any contribution you make is entirely voluntary. Except that - if your trustee thinks you can pay, and you 'volunteer' not to - they can apply to the court for an Income Payment Order (IPO), so that you do have to pay.

It depends on who you have as trustee. Some seem to allow reasonably generous amounts of expenditure, and don't take all of the surplus. Others reputedly go for every penny of surplus. And, because there is nothing in the law, or the AiB's guidance, to say different, they can technically do that. Luckily, most of them will have an eye to what might stand up as 'reasonable' if it did go to court.

But, when you're trying to work out what you might have to pay as an IPA, it might be better to look on the more pessimistic side (the trustee could take all of my surplus) rather than using the England/Wales calculations (first £99 of surplus won't be touched) so that - if you do get a surprise over the amount you have to pay - it's more likely to be a pleasant one!

HTH - and good luck with it all

kduffy101

thanks very much for that.
house is sold on 18/09/09.
then im going to CAB for help+advise.
will keep you all updated on the scottish side of the BR route.

coolcait

kduffy101 wrote: »

thanks very much for that.
house is sold on 18/09/09.
then im going to CAB for help+advise.
will keep you all updated on the scottish side of the BR route.

Just one more wee tip - make sure that the lawyers have registered the change of ownership before you apply under LILA. If the AiB do a property search, and it comes up showing that you still own the house, then they'll probably refuse your application, and you'll lose the £100 fee.

HTH

Miss_Poohs

Hi KDuffy - no advice, just good luck wishes.

I'm in Scotland too, and my husband having got himself into a financial hole is dealing with a local authority debt advisor.

Lovely guy, came to house to see us both.

You can find out if your authority has one (I'm sure most do) on the AiB site, and their contact details will be there to make a call if you feel you need the help.