Debt Advice for Scottish Residents

Today people have so many problems regarding money. Many people owe money from creditors and then don’t have the capacity to repay that money.Sometimes people get frustrated and they choose very bad way to come out from this.What Is Sequestration?In Scott, the sequestration is in benefits of creditors by taking bankrupt’s property with the order of government.What's Required To Apply For Sequestration?There are several conditions like,• If any creditor charges a person for payment and give 14 days notice to pay the money.• If any of the creditors will serve a statutory demand for payment and give 21 day notice to pay.• If you get any type of warrant because of not paying the council tax, other taxes and the deadline was over.• The most important condition: you must owe more than £1500.Advantages of Sequestration :• You are free from the pressure of your creditors as well as they have no rights to take any action against you.• There is no need to make further payment to your creditors.• After 3 years you may get discharged and then you will be free from all your debt. (It is true when you don’t have any debt between the sequestration period).Disadvantages Of Sequestration :• If you have any valuable property like assurance policies, then you lose all these types of valuable things.• If you take money on behalf of your home then you also lose it.• If you work at any place means a paid employee than you have to contribute some money.• If you require any money or property after the sequestration starts or before the date of your discharge then you will have to surrender that money to your trustee.If you want to apply for sequestration than the charge for application is £63 and you also need evidence of your apparent insolvency.Scottish people also have one another law named Trust Deeds. This is only applicable for Scotland people.What Is A Trust Deed?In Scotland, a debtor grants a deed in favor to the trustee which transfers their properties to a trustee for the benefits of creditors.Benefits Of Trust Deed :• Trust Deed ‘s first benefit is that it makes all the correspondence free from pressure and trustee deals with queries from creditors.• It puts the creditors in control according to the debtor’s financial situation and reduces the cost.• Compared to sequestration a trust deed is more flexible and less costly. It also allows the debtor to fulfill certain public offices – which would not be the case with sequestration.Disadvantages Of Trust Deed :• If creditor didn’t get his all money from the other sources than the debtor forced by the law to sell his home.• The debtor also cannot trade on their own account or keep directorships of a limited company.