No debt problem is unsolvable,  but the earlier you act the easier it is to tackle.

The Money Advice Service estimates that one in six people have a debt problem, you are not alone.

We know confronting a debt issue can be challenging. That's why, when we work with you, our first job is to listen.

Our experienced money advisers are based throughout Scotland and are on hand to listen, empathise and advise.

We’ll start by helping you draw up a realistic and sustainable budget, before explaining all of the options available to tackle your debt. This could include bankruptcy, protected trust deeds or a debt payment programme under the Debt Arrangement Scheme. We will explain all of the pros and cons of each option to ensure you can make an informed decision.  You select the one that suits you best.

Helping you to regain control of your finances

Debt payment programme

What it is: A debt payment programme under the Debt Arrangement Scheme is a legally binding repayment plan that not only stops the debt collection process it also freezes all interest and charges. It allows you to repay your debts at an affordable amount over a longer period of time.

How it works: You make one affordable monthly payment which is then paid to your creditors on a pro-rata basis. Under a DPP, you will pay back all of your debts. 

Is this for you? This may be a suitable option if you have some disposable income that you can afford to pay over a period of time and if you own a lot of assets or equity in your home which you do not want to put at risk.

Protected trust deed

What it is: A protected trust deed is a form of personal insolvency administered by a Trustee (for example, Johnston Carmichael) on behalf of your creditors, i.e. those you owe money to.

Under this arrangement you normally make one affordable monthly payment which is then ( after fees) distributed to your creditors on a pro-rata basis. You can also realise assets and pay for it that way, or a use a mixture of both.

How it works: You make 48 (or more) affordable monthly payments and the rest of your debts are written off.

Is this for you? This may be a suitable option if you have some disposable income which you could pay over a four to five year period, or longer, and little or no assets.

Sequestration

What it is: Sequestration (bankruptcy) is a form of personal insolvency, administered by a Trustee (for example Johnston Carmichael), on behalf of your creditors i.e. those you owe money to. Under this option you normally make one affordable monthly payment which is then (after fees) distributed to your creditors on a pro-rata basis. You can also realise assets and pay for it that way, or a use a mixture of both.

How it works: You make regular monthly payments over a 48 month period and the rest of your debts are written off.

Is this for you? This may be a suitable option if you have some disposable income which you could pay over a four-year period and have little or no assets.

Get in touch with our advisers

When it comes to confronting a debt problem, a problem shared, really is a problem halved. 

To find out more about how we can work with you, please contact our Money Advice Manager, Martin Barr, for an initial chat: martin.barr@jcca.co.uk



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