Katie Hocking, Supervisor at Dunedin Advisory, highlights the warning signs that personal insolvency isÂ just around the corner…and what actions you can take.
With Scottish insolvencies at a six-year high, last year 13589 Scots went into bankruptcy or took out a protected Trust Deed, which can formalise an agreement between you and the people you owe money to – your creditors.
Sometimes it is hard to determine whether or not you are insolvent. People you owe money to may be putting pressure on you and you may feel like you are paying out more than you have coming into your household. Watch out for these three signs that insolvency may be just around the corner.
- You are unable to meet your creditor payments
Do you have a number of credit cards, loan payments or store cards that you are unable to pay the minimum payment on? Is the interest building up? Are you taking out further credit to make payments to other creditors?
- Your liabilities are more than your assets
Do you have any assets or are you just obtaining more debt? Is your house in negative equity? If your assets were to be sold would you still not have enough to pay creditors?
- A creditor has served you with a charge for payment or threatened you with insolvency proceedings
Have creditors been threatening you with insolvency proceedings? Have you had sheriff officers serve a charge for payment against you for money owed to creditors? Has legal action been taken and a court hearing date set?
If you can relate to any of the three situations above these are signs that insolvency may be just around the corner for you. Unless you act now, insolvency proceedings may be raised against you by one or more creditors. Don’t despair – there are a number of options available for anyone who believes they may be insolvent.
- Get advice
The best thing you can do is to speak to a specialist debt advisory company like us, money advisor or your local Citizen Advice Bureau. Initial consultations are free of charge and these experts will be able to review your circumstances and provide advice on your options and how to proceed.
Depending on your financial situation it may be possible to negotiate with creditors to put in place a payment plan. Or you may be in a position to obtain a loan to consolidate the amount into one payment rather than paying several creditors at once.
If you owe Â£3,000 or more, a formal form of insolvency may be a more suitable option for you. An insolvency practitioner or money advisor would be able to speak to you about the different options that are available, be that a Trust Deed, a Debt Arrangement Scheme or an application for your own Sequestration (bankruptcy). Â Your financial circumstances and your asset/creditor level will determine the best route for you.
- We can help
Â At Dunedin Advisory, we have a team of insolvency practitioners qualified to advise and help you with personal debt and insolvency problems. Contact us in confidence by email -Â email@example.com or call: 01592 630085Â | 01382 250695Â | 0141 280 8670 and ask for one of our restructuring debt specialists to call you back.