'low income low asset' bankruptcies

Bryando

Does anybody know of this within Scotland?
low income low asset' bankruptcies


I was told that if I done this it would be on record for two years, rather than the 6 years?

I've got nothing to lose in doing this, only 25. Have no intrest in buying a house in the future. Even if I did would this route hamper it?

I owe Gas debt, Council Tax, contract phone. The debt must amount to over £1500? If I decided to stop making re payments of this what can happen? I have not much furniture for them to take and have no fear of 'baillifs' as reside in Scotland. Nor can face the jail.

So all I imagine they could do is take money from my benefits by arresting my bank account?

dojoman

Just do a search for LILA, there are loads of threads about it:)

coolcait

Bryando wrote: »

Does anybody know of this within Scotland?
low income low asset' bankruptcies


I was told that if I done this it would be on record for two years, rather than the 6 years?

I've got nothing to lose in doing this, only 25. Have no intrest in buying a house in the future. Even if I did would this route hamper it?

I owe Gas debt, Council Tax, contract phone. The debt must amount to over £1500? If I decided to stop making re payments of this what can happen? I have not much furniture for them to take and have no fear of 'baillifs' as reside in Scotland. Nor can face the jail.

So all I imagine they could do is take money from my benefits by arresting my bank account?

I agree with dojoman - there's a lot of info on here about LILA.

I'd also suggest that you do some more research. I have no idea where the 'two years' bit has come from!

Bankruptcy is bankruptcy. There are three ways to make yourself bankrupt in Scotland, and one of those ways is show that you meet the definition of 'Low Income Low Assets'.

But once you're bankrupt, you're bankrupt. With all that means - the effect on your credit rating; the possibility that you might have to pay a contribution (Income Payment Agreement) if you are earning a wage; and so on.

It does worry me when I hear people talking about LILA as if it was somehow 'not as bad' as 'proper' bankruptcy. It is 'proper' bankruptcy.

(P.S. I think this board gives a realistic view of LILA, and its implications. Not all sites are as scrupulous in that sense. Nor, sadly, are CAB etc, sometimes).

Raphael

Just a few thoughts...

Bryando wrote: »

The debt must amount to over £1500? yes.

If I decided to stop making re payments of this what can happen? I have not much furniture for them to take and have no fear of 'baillifs' as reside in Scotland. There's no bailiffs in Scotland but that's because they are called sheriff officers instead! I think they're pretty much the same otherwise but someone might know more than me on this.

So all I imagine they could do is take money from my benefits by arresting my bank account? Yes, Council Tax are the ones most likely to get a charge for payment against you, with arrestment of earnings etc.

Did you get advice with one of the debt charities? If the debt isn't that high, are there no other options for repayment?

Also, would bankruptcy be the end of your problems? If your debt is for council tax, gas and phone, which is all recurring bills, ignoring the arrears, are you able to cover these normally, or are you likely to get into debt again? If you're struggling to cover your recurring bills, have you checked you are claiming all the benefits you're entitled to (housing benefits, council tax benefits, etc), are there any other ways you could save money (compare gas / electricity prices and change service / providers if needed) or cut down on unnecessary expenses?

hattybee

Bryando wrote: »

Does anybody know of this within Scotland?
low income low asset' bankruptcies


I was told that if I done this it would be on record for two years, rather than the 6 years?

I've got nothing to lose in doing this, only 25. Have no intrest in buying a house in the future. Even if I did would this route hamper it? If you go bankrupt, you are v. likely to have problems getting credit in the future - any forms tend to ask questions about bankrutpcy and you'll be viewed as more high risk than someone who has never been bankrupt.

I owe Gas debt, Council Tax, contract phone. The debt must amount to over £1500? If I decided to stop making re payments of this what can happen? I have not much furniture for them to take and have no fear of 'baillifs' as reside in Scotland. Nor can face the jail. Unlikely to be able to take furniture or anything else in your home - they can only do this in exceptional circumstances.

So all I imagine they could do is take money from my benefits by arresting my bank account? Again, can only arrest funds over a certain sum - currently £415. And, if the balance in your bank is mostly from benefits, they are unlikely to be able to take this, as

social security benefits are exempt from arrestment.

Bankruptcy isn't an easy option - look at the alternatives before making any decisions

debtfree20_2

Hi, Just thought I would share my experience of LILA Bankruptcy.
I have/had £15000, of debt which I was really struggling to pay. Initially I took an IVA (lived in England at the time), unfortunately I couldn't afford this and when I reduced my payments the IVA was extended for a further 3 years. I could not see my situation changing for the foreseeable future.
I now live in Scotland and took some advice from CAB, they explained my options and LILA Bankruptcy was my best option. Even though my total income was greater than £229.00/week, I was eligible as I receive working tax credits. These are based on last years income when I was earning a lot less.
My income is also very variable and I calculated the average over the previous 3 months and stated that on the application for LILA Bankruptcy.
Due to difficulty getting to the CAB again I decided to fill in the application form and send it directly to the Accountant in Bankruptcy. This cost me £100. I had a few questions for the AIB, I called and they were very friendly and helpful. If you decide to do this, make sure you are completely honest on the form. Do not hide anything, they will find out and you will loose your £100.
Four days after sending my form I received a form which just asked me to confirm the details on my application were correct. I sent this back the same day and less than a week later I was declared Bankrupt. The letter confirming this took a couple of weeks to arrive. I just kept checking the register of insolvencies on the AIB website. It appeared on there a few days after they received my second form confirming the details.
I do not have to make any contributions, this will be reviewed in six months.
If you can afford to avoid Bankruptcy then try really hard to. What I will say is.... the relief following this process is amazing.
I have kept my co-op and barclays accounts, I was honest and explained it all to them and they said they would put a note on my file.
Only 1 loan company have been chasing me, I wrote a letter and sent a copy of letter from AIB. They haven't called in over a month.
I now know what I earn I can spend on food, bills and stay up-to-date. Credit is not an option and wasn't before due to so many late payments. I get to the end of each month knowing everything is paid and I do not have to borrow money or live on rubbish food for a week.
I only have 1 regret and that is that I didn't do it sooner.
Anyone stressed and struggling should consider this option and never get credit again.