Hello there, If it is a 'debt management plan' that your partner has been under it is possible to come out of that arrangement and to deal directly with the creditors. Your second query is a little more difficult to answer. Debt collection agencies can either act on behalf of the original creditor - or they can buy they debt to become the creditor. Sometimes it can be a little trickly to know how a debt has been assigned, so you may need to undertake a little homework. The general approach is to contact the people that are currently chasing you for payment and to work from there. If the debts are old it would certainly be worth exploring to see if all of the paperwork is present. It may be possible to seek a very low full & final settlement from a creditor if there are significant issues with the paperwork - for example if there isn't evidence of a signed credit agreement. Very best wishes, David @ National Debtline

Hello Daisy, If the car is subject to hire-purchase finance (please do check the credit agreement) the vehicle wouldn't be yours to sell. It appears likely that it is hire purchase given that the lender has implied that they can take the car. In relation to the balloon payment, there may be something you can do. It is possible to ask the court to make a 'time order' - which allows you to spead the payment over an affordable period of time. The court will consider doing this if they believe it to be fair for all parties involved. It is supposed to be a temporary arrangement although we have seen orders being made which are more permanent in nature. It may also be that the court will expect your circumstances to improve at some point in the future to warrant the making of a time order. As there is already legal action in relation to the vehicle, you can apply on the n244 form, the fee is £155 unless you qualify for fee exemption. There are no guarantees that the court will allow you instalments, they would need to weigh up all of the factors within the case. You can find further information on HP agreements and time orders here: https://www.nationaldebtline.org/EW/factsheets/Pages/06C%20EW%20Time%20order%20-%20hire%20purchase%20or%20conditional%20sale/Default.aspx Very best wishes, David @ National Debtline.

Hello there, As Caro has mentioned it's not too late to stop the repossession if you can pay the mortgage plus a little towards the arrears. You'll need to be able to show the court that you can clear the arrears within a 'reasonable' period of time - this could be the rest of the mortgage term. You can read a little more about stopping action and correctly completing the n244 here. Best wishes, David @ National Debtline twitter: @natdebtline

Bankruptcy is expensive, but there could be avenues to help you meet the fees. Some charitable organisations can provide you with a grant towards the cost. You do not have to pay these back. There are cheaper alternatives, too. If your total debt is below £15,000 you may qualify for a Debt Relief Order - these cost a one-off fee of £90. There are distinct similarities with bankruptcy; your debt can be written-off after a 'moritorium' period of twelve months. You do not have to pay anything to your creditors during this time. You can find out a little more about Debt Relief Orders here: https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20%28DROs%29/Default.aspx Best wishes, David @natdebtline

Lily, if you're in Northern Ireland you may wish to contact Debt Action NI - Which is a government funded charity. It appears that Nationwide's actions have been most unhelpful. The majority of creditors should consider an affordable payment and to freeze interest and charges if they are provided with a comprehensive financial statement. I can see that you sent one. You may wish to consider a formal complaint about their behaviour. When did you take the credit card out? Best wishes, David @natdebtline

Hello there, I can see that CitizenB has already given you some great advice about the best route forward. Although Natwest/Shoesmiths now have a charging order, it is very unlikely that they will try and take it further through the courts. Although you may come across the fact that someone with a charging order could force the sale of the property, this power is very rarely exercised. Do investigate the possibility of reclaiming charges and mis-sold payment protection insurance. If you can reclaim some money you could consider offering your creditors a full & final settlement, you can find out more about those *here. Very best wishes, David @natdebtline

Under a VT they can expect you to return the vehicle, however the distance should be around the same distance from your home as the place where you bought the car from. In short, it needs to be reasonable. If they do not allow this, it would be likely that they will be falling foul of the Unfair Terms in Consumer Contract Regulations 1999.

Hello there, If you have sold a car for it's true value and used the money to pay for your bankruptcy petition, i cannot see there being any issues. if there is a little left over the general rule would be to divide that amongst your creditors. Hope this helps! David @natdebtline

Hello there, You may be able to prevent the order from being made by applying to the court for 'Time to Pay'. If you have other debts too you may wish to consider a payment plan under the 'Debt Arrangement Scheme). You can find out more about Time to Pay HERE There's more about the Debt Arrangement Scheme HERE Best wishes, David @natdebtline

You're on the right track for sure. You just need to ensure that you've made it clear that you've exercised your right as per section 99 of the Consumer Credit Act. David.

Hello there, If you are looking to excercise your voluntary termination rights you *must* do this in writing. We have a sample letter that you can use which you can find *here*. You can terminate so long as you haven't defaulted on the agreement. Arrears are fine so long as the creditor hasn't served a default notice which has expired without you bringing the payments up-to-date. Once you VT, the value they get for the car at auction is of no concern to you. The only concern you have is that have either paid 50% of the finance or more - or that you will ensure that you do so at somepoint after you've terminated. Our fact sheet explains more. Best wishes, David @ NDL.

Hello there, We have a comprehensive fact sheet which explains the bankruptcy process in detail, you can find it here: https://www.nationaldebtline.org/EW/factsheets/Pages/01%20EW%20Bankruptcy/Default.aspx If your wife's total liability is below £15,000 she may qualify for a Debt Relief Order. These cost £90 rather than the £525-£700 that Bankruptcy can cost, there is no court hearing with a Debt Relief Order: https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20%28DROs%29/Default.aspx If you are a homeowner there can be implications surrounding the property, in addition a car can be implicated too if you are the owner, although it would depend on its value and what it is used for. Do also consider that should you go bankrupt, any debts that you owe family members would be writte-off under the order also. Best wishes, David @ NDL.

Hello there, You have protection in the form of the Mortgage Repossessions (Protection of Tenants etc) Act 2010 •This law gives you the right to request that possession is delayed by up to two months. This is so you can somewhere else to live. •You must be given notice that a lender has, or intends to, obtain a warrant for possession. This is called a 'Notice of Execution of Possession Order' The Act requires the lender to issue this to all properties where it plans to enforce a possession order via a warrant. •This notice has details that will help you ask for a delay such as dates for the warrant of possession, contact details for the court and contact details for the lender. •A possession order can only be executed by warrant after the end of 14 days, beginning with the day on which the notice is given.•Alerted by this notice, you can ask the lender for time to find alternative accommodation. If the lender agrees, you should ask for confirmation in writing.•If the lender refuses the request or does not respond, you can then apply to the court for postponement of the possession for up to two months. Lenders are not expected to refuse the request, although they can refuse. •If the lender or the court agrees a postponement, Law of Property Act Receivers can still be appointed to collect rent on behalf of the lender. •If the court agrees a postponement, the court can order you to continue to pay the rent. This does not create a tenancy agreement.•If you have already received a postponement of possession they cannot request another delay.•If you do not ask for a postponement, the lender may go ahead and obtain possession of the property on the date fixed. I really hope this helps, Best wishes, David @ NDL.

Hello there, It may be worth contacting a charity called 'Turn 2 Us' to see if they can find a charity or trust fund that might be able to help you find the fee; here's their website: http://www.turn2us.org.uk/ How old are the debts, what type of debts are they? Can you remember when they were last paid? If you debts are below £15,000 you might wish to consider a Debt Relief Order. These are far cheaper than bankruptcy (£90) and a little simpler too (there is no court hearing, for example). Here's a link for further information on those: https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20(DROs)/Default.aspx If you can provide us all with a little more information about the debts that would be great. There could be alternative options open to you too. If you have court orders against you, these will need to be addressed urgently, you've come to the right place for that. Here's a link to our 'Replying to a county court claim' fact sheet: https://www.nationaldebtline.org/EW/factsheets/Pages/20%20EW%20County%20court%20-%20replying%20to%20a%20claim%20form/Default.aspx Very best wishes, David @ NDL.

Hello there, Do read Ell-enn's guide, it's very good. A court is only likely to grant outright possession to a lender where you are unable to pay the mortgage plus a tiny bit extra towards the arrears each month. There is caselaw (Cheltenham & Gloucester v Norgan) which reinforces the rule that your arrears *could* be cleared over the duration of the remaining mortgage term. You may well be able to offer less than £250 each month if you're struggling to find that amount of money each month. If you're able to clear the arrears over a faster period then that should go in your favour - its important, though, that you do not offer more than you can genuninely pay. Take a copy of your financial statement along with you to the hearing. You *DO NOT* have to include the DLA in your budget (unless you really want to). Our guide on mortgage arrears can be found here: http://www.nationaldebtline.co.uk/england_wales/guide.php?page=guide-mortgage-arrears If you can pay a little towards the arrears the court are likely to grant a 'suspended possession order' - this means that both parties are bound by the order, as such NRAM should not take any further action unless you breach the payment arrangement. As DD mentions above, if you have to reduce your non-priority credit payments to free up money to put towards the mortgage you should take that approach. ANy further questions please feel free to ask. Best wishes, David @ NDL.

Hello there, who is the DMP firm? If they are managing your debts you could contact them to inform your creditors. Of course there isn't anything to stop you contacting your creditors directly - and often taken a proactive approach could prevent the creditors taking further action. How much do you owe in total, and how much do you pay to the DMP firm? Best wishes, David @ NDL.

Hello there, when did you take the card out originally? If there are more missed/late payment charges you should look to try and have those refunded - there is plenty of advice here on CAG to help you do that. It should be possible to try and get the interest and charges completely frozen - to do this creditors generally will want to see a statement of your financial affairs so that they can ascertain that the offer of payment you are making is fair and reasonable. If you have other creditors too you should be looking to make pro-rata or token payments to all. You can read more about negotiating via our self-help guide; http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#4 Best wishes, David @ NDL.

Hello there, As Reallymadwoman has mentioned a default is likely to sta on your file as part of a full & final settlement but you can ensure that the debt is marked as satisfield. Most creditors place the marking on your file with a 'P' flag - to mention that the settlement was made via a partial payment. As far as bankruptcy is concerned it could be an option if it would take an unreasonably long time to clear your debts, how much do you owe in total? If your situation is improving then an alternative approach to the debts may well be in your best interests. Best wishes David @ NDL.

Hello there, The water debt would fall under ths statute of limitations, the time period is 6 years. As the Silverfox has already mentioned you can either send them a 'prove it' letter - or send them a letter stating that you believe the debt to be statute barred. The onus would be on the other party to prove that it isn't. If you moved out over six years ago it sounds likely that the debt is statute barred. Best wishes, David @ NDL.

Hello there. From our statistics 1 in 4 callers in October 2013 had council tax arrears. Whilst I don't have specific figures as to the number of times bailiffs have been instructed from experience it is generally the case that they are involved by the time a caller contacts us. We've seen a 25% increase in council tax-related queries in the past year alone. Our parent organisation undertook some FOI requests earlier in the year, you may have seen this data before (either from ourselves or from other sources) but it's always useful to post up again: http://www.moneyadvicetrust.org/media/news/Pages/Local-Authorities-and-Bailiffs0821-6215.aspx Given our experiences with our callers, I would agree that bailiff enforcement is the defacto enforcement option of choice for the vast majority of local authorities. Best wishes, David @ NDL.

What is bankruptcy? Bankruptcy is an option to consider when you have reached the stage of being unable to repay your debts over a realistic period. Bankruptcy may be an option where you simply cannot reach agreement with your creditors and your financial situation has become very difficult to manage. You are likely to be under a lot of pressure, with a number of your creditors competing to collect their debt from you. In Scotland, the word ‘bankruptcy’ is used loosely to describe two different situations. Sequestration Sequestration is the word used to describe the legal process by which you are formally declared insolvent (bankrupt). Insolvent means that you cannot pay your debts as they become due. In this fact sheet we will use the words ‘bankruptcy’ and ‘sequestration’. Choosing bankruptcy For some people in debt, bankruptcy can be something that they try very hard to avoid. For others, it is the most sensible solution to their debt problem. Before you can decide to go bankrupt, consider all the possible ways you could deal with your debt problem. This will include taking into account: • the total amount of your debts; • the likelihood of being able to repay your debts; and • your ability to deal with your debts. Also, take into account: • your disposable income; • the likely length of a repayment programme; and • your age and health. You should also consider your assets and the effects of losing them in bankruptcy. Assets could include: • your house; • your business; and • other valuable items. No single criterion should completely out-weigh the other. It may be a mistake to choose bankruptcy just because of the size of your debts. You should weigh up the advantages against the disadvantages. Talk to a local money advice centre, law centre, citizens advice bureau or phone us for advice. Bankruptcy is often a straight forward procedure and the advantages are likely to be: • relief from the stress and anxiety of being in debt; • having your debts written off, or ‘discharged’, after 12 months; and • being able to build a new life. The main disadvantages of bankruptcy are: • the possible loss of certain assets, particularly your home; • that the trustee has wide powers over your financial affairs; • that certain types of job can be affected; • that you cannot hold public office (for example, as an MP, MSP, councillor, or member of a school board) and you cannot serve as a company director unless the sheriff court agrees; • you cannot apply for credit of more than £500 unless you tell the creditor about your status; and • the bankruptcy will be listed on your credit reference file for six years. Even after this period it can still be difficult to get credit, such as a mortgage. This is because lenders may ask whether you have ever been bankrupt. How do I go bankrupt? In order to petition for your own bankruptcy you must: • have debts of over £1,500; • live in Scotland, or have lived in Scotland sometime during the last year; and • not have been sequestrated in the last five years. In addition, you must also be able to show that you: • are eligible under the low income and low asset rules; or • are ‘apparently insolvent’; or • have been given a formal ‘certificate for sequestration’ by an approved person, such as a money adviser, to say that you cannot pay your debts. How much does it cost? From 1 June 2012, you have to pay a fee of £200 to make yourself bankrupt. It may be possible to pay the fee by instalments. There are no exemptions for the fee. There are full details in the bankruptcy application pack about how to pay the non-refundable fee. Payment can be made by cash, cheque, debit card or postal order and you can pay by post, in person or at a bank. What are ‘low income low asset’ bankruptcies? Low income low asset (LILA) bankruptcies are a special scheme for people wanting to go bankrupt who meet certain criteria. You must have a gross weekly income of no more than the standard national minimum wage for a 40-hour working week, and low assets. The big advantage of this route into bankruptcy is that you do not have to prove ‘apparent insolvency’. You will be able to make an application for your own bankruptcy under the LILA scheme if: • you do not own your own home; • you have no asset worth more than £1,000; • your total assets are worth less than £10,000; and • you have a ‘low income’. • A car up to the value of £3,000 that you reasonably need will not be counted as an asset when you apply for bankruptcy under the LILA scheme. You will be classed as having a low income if your earnings (before deductions for tax and national insurance contributions) are no more than £247.60 per week. If you receive: • Income Support; • income-based Job Seeker's Allowance; • income-related Employment and Support Allowance; • Working Tax Credit; • Housing Benefit; • Council Tax Benefit; or • Pension Credit; you will automatically meet the low income test, even if your actual income is more than £247.60 per week. What is apparent insolvency? ‘Apparent insolvency’ is a legal term meaning that you cannot pay your debts as they become due. You will only be apparently insolvent in certain circumstances. The most common circumstances are as follows. • You have received a ‘charge for payment’ and the 14-day time limit for payment has passed without you paying the debt. A charge for payment is a formal request in writing that you pay the amount owed. It will have the words ‘charge for payment’ printed across the top. • A creditor has served a notice on you called a ‘statutory demand’, requiring you to pay off a debt within 21 days of the date of the demand and you have not paid the debt. What is a certificate for sequestration? A ‘certificate for sequestration’ is a formal document confirming that you cannot pay your debts as they fall due. A certificate for sequestration can only be issued by an ‘authorised person’, who could be: • an insolvency practitioner; • a money adviser working at a citizens advice bureau or local council; or • a money adviser working for any accredited advice agency. Before granting you a certificate for sequestration, the authorised person must: • provide you with a copy of the Scottish Government's Debt Advice and Information Package; • advise you about alternative options to bankruptcy; and • explain the effects of bankruptcy to you. This certificate lasts for 30 days from the date it is signed by the authorised person. Therefore you must complete your bankruptcy application within this time. Filling in your own petition The application pack that you need to complete can be downloaded from the Accountant in Bankruptcy's website. Alternatively, you can contact the Accountant in Bankruptcy or National Debtline and ask to be a sent a copy through the post. How will I become bankrupt? Bankruptcy will normally be awarded within five working days of the Accountant in Bankruptcy receiving a correctly completed application with all the necessary supporting information. Once you have been declared bankrupt, it means that you have to hand over your assets to the person who is going to administer your bankruptcy. They are called the trustee. The trustee will be either the Accountant in Bankruptcy or an insolvency practitioner. If you nominated an insolvency practitioner in your bankruptcy petition to act as your trustee, it is likely that the Accountant in Bankruptcy will make them your trustee, as long as they agree to this. If you are applying for bankruptcy under the low income low asset rules, your trustee will most likely be the Accountant in Bankruptcy. Once your trustee is appointed, they take over your financial affairs and control them until you are discharged, or until all your assets are disposed of. Your trustee will arrange a meeting with you. At the meeting, they will: • check the details on your application form; • tell you what their role will be; • discuss what you obligations are; and • answer any questions you may have. Do I have assets? Once you are bankrupt, your assets transfer to the trustee. The trustee may wish to sell any assets you have. Assets are the things that you own, such as: money, savings, your home or any property, vehicles, life policies, jewellery and shares. Also, if you are owed any money, this is also regarded as an asset. Certain goods are not treated as assets in bankruptcy and the low income low assets scheme. These are items such as: clothing, bedding, furniture and household equipment for basic domestic needs. Items you need to earn a living (for example, tools and books) can be excluded up to a total value of £1,000. A vehicle that you need to travel to and from work, or to do your job, can also be excluded up to the value of £3,000. • If you have valuable and non-essential household items, they may be sold by the trustee to raise money to pay to your creditors. • If you have tools or books and these are valued at a total of more than £1,000, they may be sold by the trustee even if they are needed by you to carry out your employment. In these circumstances you would normally be allowed to buy cheaper replacements. • If you have a vehicle and it is valued at more than £3,000, it may be sold by the trustee even if it is needed by you to get to work, or to do your job. In these circumstances, you would normally be allowed to buy a cheaper replacement. Will I have to pay anything from my wages? This will only happen if your income is above average and it appears that you might have available income after paying ordinary household expenses. Your trustee will look at your income and compare it with how much you and your family need to live on to maintain a reasonable standard of living. If your trustee thinks that there is a surplus, they will expect you to make a contribution towards the cost of your bankruptcy and towards paying your debts. This is called an ‘income payments agreement’. You will have the option of having deductions taken from your wages. If you cannot reach an agreement with your trustee, the sheriff will be asked to decide the amount you should pay. This is called an ‘income payments order’. Your trustee may ask the sheriff to order that payments are taken directly from your wages. Will my job be affected? Your employment will not be affected by bankruptcy unless: • you have a contract of employment which contains a clause about bankruptcy (for example, when you have a responsibility for handling money or are in a position of trust); • you hold a public office (for example, you are an MP, MSP, councillor or member of a school board); • you are a company director; or • your trade or profession has a rule which prevents you from practising whilst bankrupt (for example, solicitors and accountants). Property and your home Once you have gone bankrupt, any property which you own, including your home, transfers to the trustee. This gives them an interest in the property which may allow them to sell it. If you own your own home, it may be sold, depending on whether it has any value or ‘equity’ in it. If your spouse lives in the family home, he or she must agree to allow the sale. If one of your children lives in the family home, you must agree to allow the sale. If agreement is not given, the trustee has to apply to the sheriff court for an order allowing sale. The court can either: • grant the order (possibly with conditions); • refuse to grant the order; or • postpone granting an order for up to three years to allow you and your family to find somewhere else to live. In the case of jointly-owned property, the trustee is only entitled to the bankrupt's share of the equity in the property. It may be possible for any joint owner, or family and friends, to make an offer to buy out your share of the equity.If there is no equity, the trustee has no reason to sell the property. If you are discharged from your bankruptcy and the house remains unsold, it is still an asset and, if house prices rise, it may be sold in the future. Your trustee still has the duty to sell any assets that are transferred to them. If your trustee decides that they are not going to sell your home, they will formally abandon it and it will be transferred back to you. They must make a decision about your home within three years of you becoming bankrupt. What if I rent my home? If you are a tenant, the trustee will normally have no interest in the house as long as you can prove that it is rented. However, other problems can arise for tenants who are bankrupt and in some cases these can affect whether or not you will lose your home. In this section we explain these problems. Can being bankrupt cancel my tenancy? Some private sector tenancy agreements contain an ‘irritancy’ clause which allows the landlord to terminate your tenancy on the grounds of bankruptcy. What if I have rent arrears? If you have rent arrears, in some situations it is possible for your landlord to start repossession action even after you go bankrupt. Speak to your landlord to check how they would treat your arrears if you go bankrupt. Do I have to pay my rent if I am bankrupt? Once you are made bankrupt, you are still responsible for keeping up your rent payments. When your trustee is assessing what income you have available to pay creditors, they will take into account your rent payments. However, if your trustee thinks you are paying too much rent, you may have to move. This is because the trustee can apply to the sheriff court to set a limit on how much rent you pay. If you do not pay your rent regularly, your landlord could start repossession action. Other effects of bankruptcy Utilities • Your electricity and gas suppliers may insist that you have pre-payment meters installed. • If you had a fuel pre-payment meter before you were made bankrupt and this had been set to collect arrears, it should be adjusted to take account of current usage only after you are made bankrupt. • Your telephone company may allow the supply to remain in your name but may insist on a deposit. It may be necessary to stop and then re-start the telephone supply. It may be possible for another person, for example a spouse, relative or third party, to take responsibility for payment of the telephone bill. All outstanding electricity, gas and telephone bills at the date of bankruptcy are treated as ordinary debts and included in your bankruptcy. Council tax You will still be liable for your present and future council tax. But any council tax arrears due at the date you became bankrupt are included in the bankruptcy. The council will not be able to enforce this debt once you are bankrupt. Bank accounts You may have to close your bank or building society account when you are made bankrupt. Your trustee may allow you to open another account, usually an ‘instant access’ type, where there is no cheque book, cheque card or overdraft facility. What will happen to my credit rating? Credit reference agencies hold information about bankruptcy for six years from the date your bankruptcy was granted. This can significantly affect your ability to get further credit. Details of your bankruptcy will also appear in the ‘Register of Insolvencies’, which is a public register. Your details will remain on this register until one year after your trustee has completed their duties. How long will my bankruptcy last? Your bankruptcy will normally last for one year. After this time you will no longer be liable for the debts included in the bankruptcy. This is called ‘discharge’. Some debts will not be written off at the end of your bankruptcy. After discharge, if you gain new assets, the trustee will have no claim on them. However, your trustee continues to have a duty to sell any assets that were transferred to them because of your bankruptcy. Will any debts be excluded from my bankruptcy? Although your liability for most debts will be written off once you are discharged, there are exceptions to this. Even after discharge you will still be personally liable for: • fines, penalties, compensation and forfeiture orders imposed by any court; • any debt that has been incurred through fraud; • student loans; • any obligation to pay maintenance to an ex-spouse due under a court order (not child support agency arrears); and • money owed to a creditor whose debt is secured on your property (such as a mortgage or secured loan). Bankruptcy offences Being bankrupt puts certain obligations and responsibilities on you. You will be expected to cooperate with the trustee at all times and keep them informed about any changes in your circumstances. This includes telling them that you have moved house, or that your financial circumstances have changed. If you fail to do this, you may be guilty of a criminal offence. Also you must not: • take out credit for more than £500 without telling the lender or supplier that you are bankrupt; • start up a limited company, or be involved in the day-to-day management of a limited company, without permission of the sheriff court; or • act as an MP, MSP or as a member of a local council, a Justice of the Peace, or a member of a school board. This is not a complete list of your responsibilities. Your trustee will give you a full list of what is expected of you. If your trustee considers that you may be guilty of a bankruptcy offence, they may report you to the Procurator Fiscal. They can also impose restrictions on you. Bankruptcy restrictions You will usually be discharged from bankruptcy after one year; but, if your trustee considers that your behaviour has been dishonest or blameworthy in some way, they may report you to the Accountant in Bankruptcy. The Accountant in Bankruptcy may apply to the sheriff for a bankruptcy restrictions order to be made against you. If the sheriff makes a bankruptcy restrictions order, you will have some restrictions placed on you and these will continue after you are discharged. Restrictions can apply for between 2 and 15 years. Examples of behaviour that could lead to a bankruptcy restrictions order being made include: • not cooperating with your trustee whilst you are bankrupt; • incurring debts when you knew that you had no reasonable chance of repaying them; • giving away assets or selling them at less than their value; • deliberately paying off some creditors in preference to others; • gambling or making rash speculations, or being unreasonably extravagant; • failing to keep proper records; • fraud; • causing your debts to increase by neglecting your business affairs; • failing to supply goods or services that you have been paid for; or • carrying on a business when you ought to have known that you could not pay your debts. A bankruptcy restriction order means you are not allowed to: • start up a limited company or be involved in the day-to-day management of a limited company, without permission from the court; • act as an MP, MSP or as a member of a local council, a Justice of the Peace or a school governor in England or Wales; • act as an insolvency practitioner; • apply for credit of more than £500 without telling the lender that you are subject to a bankruptcy restriction; or • fail to inform anyone that you wish to do business with the name, or trading name, under which you became bankrupt. Click here to read our bankruptcy fact sheet in full Further information is also available via the Accountant in Bankruptcy: http://www.aib.gov.uk This information only provides a brief overview, it should not be considered as full bankruptcy advice. If you believe that bankruptcy is likely to be the best option to help you with your debts it would be vital to seek impartial advice from one of the debt advice charities such as the Citizens Advice Bureau, ourselves or your local council's money advice service.

What is a Debt Management Plan? A Debt Management Plan (DMP) is an affordable repayment programme for your debts. You pay a single payment to an independent debt management company who distribute this payment amongst your creditors. A DMP is an informal agreement, by having one you are not regarded as someone who is ‘insolvent’. Can I have a Debt Management Plan? Each DMP company will have their own rules. It is generally the case that you will need to owe in the region of £4,000 and have at least two difference debts outstanding. You will usually need to have at least £50 a month that can be used to pay into the DMP. Who can use the service? A DMP is a good option for people who can afford to make regular payments to their creditors and want an easy, hassle-free way to pay. Do consider all options so that you can make the best choice. Will my interest and charges on my debts get frozen? Creditors do not have to freeze interest under a DMP. The debt management company will have to persuade each creditor that it makes sense for them to freeze interest and charges to avoid the debt increasing. Will I be charged for a DMP? You may come across companies who offer to arrange a DMP for you if you pay a fee. These companies will also charge you a monthly fee for as long as you have a DMP with them. Be very careful about agreeing to get involved with these companies because there is no need for you to pay for a DMP. It is possible to have a free DMP as there are a couple of organisations that provide them at no cost. Free DMP providesr will use all of any payment you make to reduce your debt. Your creditors will make a voluntary payment to the DMP provider to cover their costs Will it affect my credit rating? If you miss payments on a credit debt, this will be recorded on your credit reference file by your creditor whether or not you then set up a DMP. This will usually make it harder for you to get credit. Some creditors may also ask for a note to be put on your credit reference file to say you are on a DMP. This information only provides a brief overview, it should not be considered as full advice. If you believe that a DMP is likely to be the best option to help you with your debts it would be vital to seek impartial advice from one of the debt advice charities such as the Citizens Advice Bureau, Stepchange, Christians Against Poverty or ourselves. For further information about debt management plans please take a look at our fact sheet HERE.

What is the Debt Arrangement Scheme? The Debt Arrangement Scheme (DAS) is a legal scheme run by the Scottish Government. It will give you time to pay off your debts over a reasonable length of time through a ‘debt-payment programme’. • Whilst a debt-payment programme is in place, all interest, fees and charges on your debt will be frozen from the date that you apply. • As long as you fully complete the debt-payment programme and pay off your debts, the frozen interest, fees and charges will be written off. DAS can also give you protection from creditors making you bankrupt, or using court action against you to enforce your debts. Enforcing a debt through the courts is often known as ‘diligence’. Even if some of your creditors have started to use court action against you, in most cases joining DAS will stop this action from going any further. What are the advantages of the Debt Arranagement Scheme? • You will get time to repay your debts over a reasonable period. • You will only have to make a single regular monthly payment. This is paid to an ‘approved payment distributor’ who will send the money to your creditors for you. • DAS is normally free. • Joining DAS will protect you from most creditors using court action to recover their debt. • DAS is flexible and if your circumstances change you may be able to vary your debt-payment programme to make it more affordable, or even pay it off more quickly if your situation has improved. • If you have a sudden and short-term drop in your income of 50% or more, you may be able to arrange a payment holiday of up to six months, until your circumstances improve. • Interest, fees and charges are frozen from the date you apply for a debt-payment programme and are written off completely when it is completed. • If you have made payments for 12 years and have paid 70% of your debts, you may be able to end the DAS early. This is called a composition. Who is eligible to join DAS? You can apply to join DAS either as an individual or as a couple, as long as: • you have one or more debts; • you live in Scotland; • you have a reasonable amount of money left over after you have taken account of your essential expenditure; and • you have had advice and assistance from an approved money adviser. Applying to join DAS as a couple If you want to apply as a couple for a joint debt- payment plan, you must both agree to the debt-payment programme proposal. You will be treated as a couple if: • you are husband and wife; • you are living together as husband and wife; • you are civil partners; or • you are living together as if you are a husband and wife relationship, except that you are the same sex. Who is not eligible to join DAS? You will not be able to join DAS if: • you do not have a reasonable amount of money available to pay into a debt-payment programme; • you are in a protected trust deed; • you are bankrupt; • you are subject to a bankruptcy restrictions order or a bankruptcy restrictions undertaking; or • you are paying debts under a conjoined arrestment order (this is an order from the court combining two or more arrestment orders). The rules about conjoined arrestment orders are complicated - although there is a general rule which stops you having a debt-payment programme when you have a conjoined arrestment order, you may still be able to have one in certain circumstances. If any of your creditors tries to take legal action to enforce a debt that is not included in the conjoined arrestment order, you may still be eligible for a debt-payment programme. How do I apply to join DAS? If you think that DAS might be the best option to help you with your debts, you need to get help from an approved money adviser. Approved money advisers have been authorised by the Accountant in Bankruptcy (AiB) to apply for debt-payment programmes through DAS.The first thing that an approved money adviser will do is to look at all your circumstances and help you to decide on the best debt option for you. There is a register of approved money advisers on the DAS website http://www.dasscotland.gov.uk. Will I be charged a fee to join DAS? Approved money advisers working for citizens advice bureaux, independent advice centres and local councils will not charge you for their advice, or for preparing your debt-payment programme application. Companies may say that they can help with a DAS application, but they are not approved money advisers. If you are contacted by a company offering to help you with DAS, or any other option to help you clear your debts, remember that there are lots of organisations that will give you this help for free. For approved money advisers check the DAS website http://www.dasscotland.gov.uk. Some companies in the private sector have also been authorised as approved money advisers and may charge you. You can check if there is a fee on the approved money adviser register. You would have to pay this fee because it cannot be included in the DAS. Also, before you enter into any agreement with a fee-charging money adviser, the company must follow detailed rules to ensure that they have told you that free money advice is available and where you can get it from. What happens next? Once you have found an approved money adviser and decided that a DAS debt-payment programme is your best option, your approved money adviser will take you through the following steps. These involve checking: • your income, to make sure you are claiming all the benefits and tax credits that you can; • your essential outgoings; • your surplus income (what is left to pay your creditors after your essential outgoings); • your priority debts; • how much you have left after paying your priority debts; and • how much your credit debts are. In order to do this, your approved money adviser will: • list all of your debts; and • check the amounts you owe to all your creditors. Your approved money adviser will also: • contact your creditors if necessary; and • prepare and submit your application for a debt-payment programme. What if my creditors are threatening enforcement action? It can take a little bit of time for your approved money adviser to get all the information that they need to be ready to apply for your debt-payment programme. In the meantime, your adviser can contact the AiB and confirm that you are intending to apply for a debt-payment programme. This is called an ‘intimation’. Your intimation will then be placed on the DAS register. Once on the register, you will be protected against any creditor action for six weeks and this will give your adviser time to submit your proposal. What happens after my application is made? Once the DAS Administrator receives your application for a debt-payment programme, you are protected against any creditor action to enforce their debt. This protection will only stop if you withdraw your application, or if it is rejected or cancelled (‘revoked’) by the DAS Administrator. All creditors who are named on your debt-payment programme proposal will be sent a copy. They will be asked if they agree to your proposal and, if they do not, are asked to give reasons why not. If a creditor does not respond to this request within 21 days, the DAS Administrator will treat them as if they have agreed to your payment proposal and they will be bound by it. What if a creditor objects? If one or more of your creditors do not agree with the debt-payment programme, they will tell the DAS Administrator. Even if a creditor has objected, the DAS Administrator can still approve your debt-payment programme by using the ‘Fair and Reasonable’ test. This means that the DAS Administrator will decide whether to approve or to reject your application by taking into account: • the total amount of your debt; • how long your proposed debt-payment programme will take; • how you are proposing to pay and how often you are proposing to make payments; • how many other creditors have objected; • any comments that either you or your approved money adviser have made; • any previous debt-payment proposals that you may have made; and • anything else that they think they should take into account. programme. What is a continuing money adviser? Some approved money advisers will charge you a fee for providing advice and services. These fee-charging approved money advisers are sometimes called ‘continuing money advisers’. If you have agreed in writing to pay a fee to a continuing money adviser, the way that they manage your debt-payment programme is different to the way that approved advisers who offer free advice will operate. Both types of money adviser will complete the application form and send it to the DAS Administrator for approval in the same way. However, once your proposal has been approved, the administration of the debt-payment programme is different. • If you are using an approved money adviser from a free advice agency, the DAS Administrator becomes responsible for the administration of your debt-payment programme. • If you are using a fee-charging approved adviser, the administration of your debt-payment programme will stay with the fee-charging money adviser. What happens if my proposal is rejected? If your proposal is rejected, you should get in contact with your money adviser to talk about your options. For example, it may be possible to change your proposed debt-payment programme to make it more likely that your creditors or the DAS Administrator will agree to it. You can ask the DAS Administrator to review their decision. Your money adviser may be able to help you to do this. You have 14 days from the date of the decision to write to the DAS Administrator to ask for a review. They will write back and confirm that your application has been received. The DAS Administrator may decide to: • keep the same decision as before; • alter the decision; or • remove (‘revoke’) the decision and replace it with a new one. They will write to tell you the result of the review within 28 days. If you think that the DAS Administrator has not applied the law correctly either in their original decision or in the review, you can appeal to the sheriff court. Your money adviser can tell you if this is the case. You have 14 days to register your appeal at the sheriff court from the date of the decision by the DAS Administrator. What happens if my circumstances change? If you cannot keep to the payments on your debt-payment programme because your circumstances change, you should apply to vary it before it is cancelled. You have two options: • a payment holiday; or • a variation. Discuss these with your money adviser to see which is best for you. Discuss these with your money adviser to see which is best for you. Applying for a payment holiday If the money that you have available to pay into your debt-payment programme suddenly goes down by half, or even more than that, you may be able to apply for up to a six-month payment holiday to help you to sort things out. The DAS Administrator can agree to a payment holiday if: • you become unemployed; • your employment changes; • you go on maternity leave, paternity leave or adoption leave; • you take time off work to care for a dependant; • you become ill; • you go through a divorce, end a civil partnership, or go through a separation; or • you share financial responsibility or another kind of care with a person who has died. To apply for a payment holiday you should write a letter to the DAS Administrator, with a copy of your personal budget, explaining how your situation has changed. Alternatively, you could ask your money adviser to do this for you. Since the payment holiday will temporarily stop your payments, you will have to carry them on for the same amount of time after the date they would otherwise have stopped. You can apply for a payment holiday each time you meet the requirements. There is no limit to the number of times that you can apply. The DAS Administrator will take account of any previous payment holidays you have had when they make their decision. Applying for a variation If your situation changes permanently, you might want to apply for a variation rather than a payment holiday, to make the payments more manageable in the future. To apply for a variation you should write a letter to the DAS Administrator, with a copy of your personal budget, explaining how your situation has changed. Alternatively, you could ask your money adviser to do this for you. The DAS Administrator will usually only agree to a variation in one of the following situations. • All parties to the debt-payment programme agree that it should be varied. • You have a significant change in your financial circumstances, such as your income going up or down. • Both you and your creditor agree that there is no longer a debt to be repaid. • When the debt-payment programme was made a debt was missed out, or forgotten about. • A debt that you could not put a figure on at the time you made the debt-payment programme application has become a fixed amount that you now owe. • You need credit to pay for emergency repairs, funeral costs or something like this. • You have been given a payment holiday. • A creditor reduces your debt by offsetting some money that they owe to you against your debt. When a creditor owes you money and they offset this against the debt that you owe them, it reduces the amount of your debt. If a creditor does this whilst you are in the debt-payment programme, the DAS Administrator will try to get you and the creditor to agree to a variation. If the creditor will not agree, the DAS Administrator can propose the variation if they think it should happen. If you need to vary your debt-payment programme and your situation is different, you may still be able to get a variation. You should discuss your situation with your money adviser, because you may want them to help you to apply. How will the DAS Administrator deal with my request? The DAS Administrator will look at your request and take into account your views, the creditor's and money adviser's views, as well as any other relevant factors. They will either agree to a variation, or not, and write to all parties to inform them of their reasons for their decision. Are there any debts that cannot be included in a DAS? In theory, any debt can be included in a debt-payment programme; but, in practice, some debts do not get included because the creditor has other means of getting their money. The three most common situations where this will happen are: • when you have hire purchase or conditional sale arrears; • when you have arrears of child support; or • when debts are being deducted directly from your benefits. Hire purchase or conditional sale arrears If you have hire-purchase or conditional-sale arrears, only the arrears would be included within your debt-payment programme. Your creditor would still be able to take court action to repossess the goods if you do not pay the ongoing payments as they become payable. Because of this, it would be better to reach an agreement about the repayment of these arrears before you apply to have a debt-payment programme. That way you would know whether you still have enough money afterwards to make a realistic application. Child support arrears If you have child support arrears, your approved money adviser will talk to you about prioritising these payments, because you cannot be protected from enforcement of arrears by a debt-payment programme. You will need to arrange to pay child support arrears as part of your essential spending. Debt collected directly from benefit If you receive certain types of benefit, the Department for Work and Pensions can arrange to deduct some kinds of debts directly from your benefit before you receive it. For example, direct deductions from your benefit can be made for council tax arrears, fines, a short-term advance, a budgeting loan, a budgeting advance and benefit overpayments. However, debt-payment programmes are usually not a good option for someone who is on a very low income such as a social security benefit. Speak to your money adviser about whether a debt-payment programme is a realistic option if you start to claim social security benefits. What about mortgage or rent arrears? If you have mortgage or rent arrears, you can still apply for a debt-repayment programme and you can include your arrears in the debt-repayment programme. But this will not always stop your mortgage lender or landlord from taking repossession action if you are behind with your payments. Having your mortgage or rent arrears included in a DAS may make repossession less likely, but you will need to keep making your regular mortgage or rent payments. If you have included your mortgage or rent arrears in a DAS debt-payment programme, but your lender still starts possession procedure, the court will take this into account when deciding the case. Also, one of the factors the court must consider, when deciding if it is reasonable in all the circumstances to allow eviction to go ahead, is whether you are in a debt-payment programme. It is important that you keep up your regular mortgage or rent payments whilst you are in a debt-payment programme. If you start to fall behind with these payments once you are in a debt-payment programme, speak to your money adviser. What happens if I miss payments on my debt-payment programme? If you miss payments, or make part-payments, so that your arrears add up to the value of two months' payments and another one is due, your debt-payment programme may be revoked by the DAS Administrator. They can also revoke it if: • you do not keep to a condition which is part of your debt-payment programme; • you have not told the truth when applying for your debt-payment programme or when making an application for a variation; • a creditor petitions for you to be made bankrupt before the debt-payment programme is approved and the court makes you bankrupt; • you are in a joint debt-payment programme and have separated from your partner; or • you die, or one of you in a joint debt-payment programme dies. • The DAS Administrator will contact you and the other parties to the debt-payment programme if they intend to revoke it. If you do not respond and the debt-payment programme is revoked, your creditors cannot take action against you for 14 days from the date of the decision to revoke. • You must act quickly if you want to stop your debt-payment programme from being revoked. Let the DAS Administrator know about your circumstances and why you want to keep your debt-payment programme. You may want your money adviser to help you do this. In this case you have 28 days from the date you contact the DAS Administrator before your creditors can take action against you. • When deciding whether or not to revoke the debt-payment programme, the DAS Administrator will take into account the rules and also the circumstances around how you have broken them. They will look at any other factors, including whether or not your debt-payment programme is likely to be successful. • If your debt-payment programme is revoked, your creditors will be able to take action against you again. Also, your creditors can ask you to pay the interest and charges that would have been payable if you had not started the debt-payment programme. Can I take out further credit? You are not supposed to take out further credit whilst you are in a debt-payment programme, unless one of the following special circumstances applies to you. • Your credit is approved by the DAS Administrator and your debt-payment programme is varied to help you to repay the extra credit. • You need credit for emergency repairs to your home. • You need credit because you are responsible for reasonable funeral expenses. • Your credit was taken out before you joined DAS and was part of cyclical loan agreement. • You incur a trade debt in the ordinary course of business. You must notify the creditor if you are in a debt- payment programme and you get credit due to one of the circumstances listed above. You will be expected to pay this at the agreed contracted rate. Your debt-payment programme may be varied to take this into account. A short-term advance, a budgeting loan or a budgeting advance from the Department for Work and Pensions is not treated as credit by DAS and you can apply as normal if you are on certain benefits. What is the DAS register? The DAS register gives information about those who are applying for, or who have already got, a debt-payment programme. This is a public access register which anyone can access free of charge. • Creditors and credit reference agencies can check this register and may use this information to update your credit reference file to state that you have a debt-payment programme. • The register will also say whether there has been any variation in the conditions of your debt-payment programme. • It will include details of your name, age, address and the contact details for your approved money adviser. Will DAS affect my credit rating? Credit reference agencies check the DAS register regularly and may update your credit file to reflect that information. This is likely to affect your ability to take out further credit. Can I end my payments early? The DAS Administrator, or a fee-charging money adviser, can ask creditors to accept less than the full amount of the money that you owed them when you started the debt-payment programme. This is called offering a ‘composition’. If it is accepted by all your creditors, it will end your debt payment plan and you will have no more to pay. An offer of composition can only take place after: • you have paid 70% of the amount that you owed when the debt-payment programme started; and • you have made payments for a full 12 years (not including any payment breaks). The DAS Administrator will record which creditors agree to the offer of composition. If a creditor does not respond to the offer within 21 days, they will be added to those creditors who agree to the composition. If all creditors (including those creditors who do not respond) accept the offer of composition, the DAS Administrator will write to you to confirm that your debt-payment plan has ended. They will tell your creditors. The DAS Administrator will also tell your employer to stop taking money from your wages to pay the debt-payment programme, if it has been happening. But, if all of your creditors do not agree to the offer, the DAS Administrator can still alter your debt-payment plan. They will take account of the agreements received and make a variation. The DAS Administrator will write to you to explain the details of the new variation. What happens when I finish my debt-payment programme? You have finished your debt-payment programme when: • all your creditors have agreed to an offer of composition; or • you have paid all the payments; or • you make a lump-sum payment equal to all outstanding payments; or • all creditors in your debt-payment programme agree in writing to complete it before the scheduled end. Once this has happened, you cannot be held liable for any further payments towards the debts included in the debt-payment programme, or any further penalties, interest or charges. The DAS Administrator will remove your details from the DAS Register and tell your creditors that your debt has been repaid. If you are repaying your debt-payment programme directly from your wages, the DAS Administrator or your money adviser will write to your employer, telling them to stop the deductions from your wages. What if I have a complaint? If you are unhappy with the way in which your debt-payment programme has been dealt with, you may have reasons for complaint about your approved money adviser or the DAS Administrator. A complaint about your money adviser If you feel that you have a complaint about your approved money adviser, you should make a complaint to the organisation that they work for. You can also make a complaint about your money adviser to the DAS Administrator. They have the power to cancel approved money adviser status if they feel that the adviser is unable to carry out the duties set out by the Scottish Government. A complaint about the DAS Administrator If you feel that you have a complaint about the DAS Administrator, you should follow the Accountant in Bankruptcy's complaints procedure. If you are still unhappy, you can complain to the Scottish Public Service Ombudsman. This information only provides a brief overview, it should not be considered as Debt Arrangement Scheme advice. If you believe that a Debt Arrangement Scheme is likely to be the best option to help you with your debts it would be vital to seek impartial advice from one of the debt advice charities such as the Citizens Advice Bureau, ourselves or your local money advice office. Click here to see our DAS fact sheet in full

You've picked up on an interesting point, a couple of us in the office are looking in to it. It's not anything that we've been asked before. What about tenancies which are pre-1989 but excluded from protection afforded by the Rent Act 1977 protection? We're guessing some of these are unlikely to require a NTQ. David.

Hello there, Would it not be dependant on the actual type of tenancy? I know that a fixed term tenancy would simply come to its end at the end of the prescribed time. That said, I cannot remember ever coming across a client with one of those. Our fact sheets, however, do need to cover as many potential eventualities as possible - the work that goes in to each one is staggering. David.