Preparing for bankruptcy in Scotland and LILA

Katharine

I want to go BC but I have read that you have to have a County court hearing for money owed to go bankrupt in scotland. But I earn under the threshold for a LILA. Right at the moment if I go on the CCCS calculator it says I don't even earn enough to go bankrupt as a can't meet my basic living costs and to make £1 payments to my creditors. I'm sure I can cut my budget down a bit more than they say and downgrade my car to a cheaper to insure one, and give up smoking and OH could cover the rest for the time being.

Am I best off going for a LILA while I'm earning under the threshold, also I don't want to get into the position of creditors hastling me when I'm under enough strain already. I hope to get a better job soon obviously but that would probably take me over the threshold, but is it a case of once its done its done and when my situation improves all the better as then I can make payments and be happier.

I also have 1k in a saving account that my nan gave me years ago towards a deposit on a house (which just isant going to happen). I haven't used this for fear of dissappointing my nan but it looks like I'm going to have to (dissapoint her and use it). I am planning to take this out and live on it while I get everything prepared so I am not getting further into debt. Also I understand it would otherwise be considered an asset.

I have an old pension that just keeps dropping as I'm not paying into it, was worth £2500 last time I looked, will it mean I can't get a LILA? If I do have to start not paying creditors to go bankrupt any advice on the best way to do that?

I also have debt with my bank would it also be wise to change bank accounts? Currently all the household bills go out of mine should I transfer them to OH's account? Should I get my wages sent to my new account and then spend him my money to pay the bills? (it was the other way around).

All help gratefully recieved. Apologies for the spelling I'm not usually this bad but very stressed.:o

IF

Hi Katharine, I'm sorry to hear how down you are.....we all know how you feel. I'm afraid don't know much about Scottish BR but until one of our Scottish poster's can advise further these links may help.

Advice on bankruptcy.

• Consumer Credit Counselling Service (Scotland) - Website: CCCS Telephone: 0800 138 3328
• National Debtline (Scotland) - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline Scotland - Website: Business Debtline Telephone: 0800 197 6026
• 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: 0845 762 6171 - 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)

DoshDolt Has done these threads and I hope they help too.

Click on Blue links below -:

A Guide to Bankruptcy in Scotland Part 1

https://forums.moneysavingexpert.com/discussion/2611513

A Guide to Bankruptcy in Scotland Part 2

https://forums.moneysavingexpert.com/discussion/2611543

Bankruptcy in Scotland - Some Advice – If Lucky No Lawyers & No Court

https://forums.moneysavingexpert.com/discussion/2602521




Best wishes
If...x

Katharine

Thank-you for the quick reply IWWH. I'm reading up on it all ATM, and going to phone CCCS tomorrow. In preparation for telling OH this weekend.:eek:

IF

Katharine wrote: »

Thank-you for the quick reply IWWH. I'm reading up on it all ATM, and going to phone CCCS tomorrow. In preparation for telling OH this weekend.:eek:

Well deep breath's and let us know how you get on x

Katharine

Thanks for the support. Still hopeing to wake up to some more advice tho.