I’m £50k in debt Scotland

ManyWays

I agree with @fatbelly that on your SOA a DMP looks the clear answer. It is also flexible, so if things get better its paid off faster, if they get worse, it's slower or you could then consider an IVA. An IVA is NOT a flaxible option and should be avoided unless you don't have another sensible choice.

Also that is a very large Zopa loan, you could look at an affordability complaint about that if you are in a DMP, whether thats through StepChange or a DIY version. And if you cleared any previous loans with that Zopa loan, winning an affordability complaint against them would get you a cash refund, to start your savings for making settlement offers/

RAS

Having done roughly the same calculation as fatbelly, I've come to the same conclusion. You aren't eligible for a DRO. Bankruptcy risks the house and as a single owner that's even more so.

Theoretically your payback situation is very similar at 6 years but:

IVA you risk paying back the full amount plus the IP fees if you get any windfall or salary increase. And the budgets tight. And a new mortgage is much harder to get as you have to declare this whenever you are asked about insolvency.

A DMP is more flexible, and you should be able to get reduced settlements in the next few years. And maybe some affordability claims. They often have to go to appeal but that can result in the default being removed.

Realistically with your debt level, you'll not get a mortgage on a new house within the next five years anyway.

As a single houseowner it is really important that during the period you are waiting for defaults you save everything you can so you have an emergency fund to cover major issues, as well as a budget for house maintenance.

chrisjvc1

Can I ask as I’m in Scotland. Is a DAS a better option than a DMP?

fatbelly

I'm not an expert in Scottish law and England has no equivalent product.

Yes, that could work

https://nationaldebtline.org/get-information/guides/debt-arrangement-scheme-s/

You'll need to talk to an approved adviser for these things

RAS

Can you try to edit the title of your thread to include the word "Scotland", as that will attract the attention of posters who know more about the Scottish debt system?

I'm aware that DAS is more formal than an English DMP and believe it protects you from legal action, but little else about it.

sourcrates

The DAS is best described as a "formal debt management plan" or as near as it makes no difference.

As per fatbelly`s post, you can`t do one yourself, you must apply through a Scottish debt advisor.

ManyWays

Stepchange have Scottish advisers, they can talk you through the differences between a DAS and a DMP.

Caley314

It works slightly differently in Scotland but a Debt Arrangement Scheme or Protected Trust Deed maybe the best option for you but both will have a negative impact on your credit score for 6years. 

I’ve recently contacted J3 Debt Solutions and they went through all my options, I was terrified about losing my house but Protected Trust Deeds don’t necessarily mean losing your home. They were really good going through expenditure and making sure I’d accounted for everything. It’s definitely worthwhile phoning and discussing your options