If your financial situation becomes too difficult to sort out on your own, a few of the available legal options are listed further down the page.
Before taking any action, you can call our Money Management Team to get free information and suggestions, as some of the options may make it more difficult for you to borrow in future.
Money Management Numbers:
Granting a Trust Deed is voluntary and can only be initiated by you. This is a way of setting up a monthly repayment schedule based on what you can afford to pay, if you cannot repay your debts in full. If you’re a homeowner, you may have to release any equity in your property to pay your debts. A deed will typically last for 3 years, after which any remaining debts are normally written off. However, entering into a Trust Deed will affect your credit rating and will remain on your credit file for up to 6 years. Speak to an advice provider for more information.
If you have some surplus income and have more than one debt which you’d like to pay off, you may be able to apply for a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS). Under DAS, you make a single regular payment to an approved payments distributor. They then distribute sums to the people you owe money to. If you keep to the agreed payments, your creditors will not be able to take any further action against you. This is a free service for people paying debts under an approved Debt Payment Programme. You need to see an advice agency which will refer you to an approved money advisor.
In some circumstances you can petition for your own sequestration (bankruptcy). Your assets may also be sequestered (bankrupted) by somebody you owe money to, or by your Trustee acting under a Trust Deed. In a sequestration, a Trustee (a licensed insolvency practitioner) is appointed to recover, manage and sell-off your assets, in some cases including your home, to pay your creditors. The Trustee may also seek a contribution from your income if you’re employed. Sequestration normally lasts for 3 years. Being sequestered will make it difficult to obtain credit in the future. It should only be considered after reviewing all your options and taking professional advice