Debt Remedies

This topic provides information resources that cover a range of different debt remedies that debtors may be able to use to reduce and repay their outstanding debts. These include petitioning for bankruptcy, sequestration, Individual Voluntary Agreements, Debt Management Plans, Debt Arrangement Schemes and informal arrangements.

Categories

Administration & Composition Orders (25 items)

An Administration Order is a court order which covers outstanding debts. Under it an individual would make a monthly payment to the court, who will then distribute that money on a pro rata basis amongst the person's creditors. The Court takes a percentage of any payment as a handling fee. A Composition Order is a variation to a normal Administration Order where, instead of being ordered to repay the full amount of your debts, you will be ordered to only pay a percentage of what you owe, with the remaining amount being written off.

Consolidation Loans (12 items)

Includes information on the levels of consolidation loans taken out and other issues relating to the consolidation of debts. Consolidation loans are used to pay off existing debts and transfer the monies owed into one loan with one manageable, monthly repayment. Loans of this nature still require debtors to pay back all the monies owed, but with a debt consolidation loan they may be able to reduce their monthly outgoings, pay a lower rate of interest, or be able to spread the costs out over a longer time period.

Debt Arrangement Scheme (16 items)

Includes information on the Debt Arrangement Scheme (DAS), a debt management tool introduced by the Scottish Executive. The service is often free, but some money advisers may charge for their services.

Debt Management Plans (36 items)

This category includes information resources on Debt Management Plans (DMP). A DMP is an arrangement between an individual and their creditors to repay outstanding debts that is usually brokered by a third party. The third party usually negotiates the amount to be repaid and the agreed payment is made each month to the third party who then distributes payment to each creditor. The third parties are often paid by the creditors with services free to the person with the debt.

Debt Relief Orders (22 items)

Debtor-petitioned bankruptcy (73 items)

Includes information resources on applications and other issues relating to bankruptcy where the debtor is the person petitioning for bankruptcy rather than a creditor.

Equity release (12 items)

Includes information on situations where the release of equity, usually in relation to property, is used in order to meet outstanding debts.

Homeowner Mortgage Support Scheme (17 items)

Individual Voluntary Arrangements (43 items)

Includes information resources regarding Individual Voluntary Arrangements (IVAs). IVAs constitutes a formal repayment proposal presented to a debtor's creditors usually via a third party such as an insolvency practitioner.

Informal arrangements (26 items)

Includes information where debtors have come to informal arrangements with creditors to repay outstanding debts.

Mortgage Arrears Forbearance (15 items)

Provides information about the range of forbearance tools that can be implemented by lenders to deal with mortgage arrears. This could include (but is not limited to); mortgage term extension, payment holidays, and reduction of mortgage instalments.

Mortgage Rescue Scheme (30 items)

Protected Trust Deeds (20 items)

Includes information regarding Protected Trust Deeds. A Protected Trust Deed is available to debtors in Scotland and enables them to make a formal proposal for payment to their creditors through an Insolvency Practitioner.

Scottish Mortgage to Rent scheme (12 items)

Sequestration (27 items)

Includes information resources about sequestration. Sequestration is the Scottish equivalent of bankruptcy.