Debt in Scotland and facing Repossession?

Posted on Tuesday, 6 December 2011 in Homeowner NewsFor many Scottish residents the threat of repossession, especially when families have resided in a property for a number of years is so severe that those people put off seeking debt help options for understandable reasons.

A protected trust deed is a way of clearing debt that should only really be considered when you have no other way of realistically managing your debt in Scotland.

If you are a homeowner and you are concerned about repossession or what might happen to your home in the event of using debt management here are some things to ponder.

Debt Arrangement Scheme

Using this Government-created tool, although it may take longer to clear your debts, your home is completely safe and should you qualify and mean the criteria your creditors will be legally bound by the terms and will be forced to legally freeze further interest and charges.

Negative or low equity

You may have thought about taking advantage of Scottish Trust Deeds but been put off because you believe that your equity is too high.

It may be possible that during this recession that this affecting you. It is affecting many people in Scotland and many homes are worth less than what the occupiers think they are.

In some cases a pre-arranged valuation taken out by your Trustee may demonstrate that there is insufficient equity in the property and therefore your home is no longer an asset that can be realised.

The stigma of Repossession

Not many people get excited about the prospect of losing their home. A home that invariable meant a lot of hard work and investment of time, energy, money and ultimately debt. Add this to the emotional bond and attachment that we feel to a home and an inevitable feeling of vulnerability of losing something that makes us feel secure.

Sometimes, when facing insurmountable debts there is no other option but to wipe out unsecured debts, start again over and hand over the keys to the property for a voluntary repossession. While this is a deeply distressing situation and a decision which should be taken lightly, it may benefit you in the long term.

Mortgage Rescue Scheme Scotland and Repossession

Previously, some companies have offered a Buyback scheme but many of these companies do not offer favourable rates. The Government answer is the Mortgage Rescue Scheme, which ensures that the Government buys your property and allows you to live in the property, paying rent. This is an option that should help those with the worst financial difficulties and are wishing to keep their properties.

In short, in you are facing repossession there may be avenues that you can explorer in order to get your finances back on track and retain your house where possible.

As always, Trust Deed Scotland a provider of ethical debt advice, advises you to discuss your case with a qualified impartial money advisor from Citizen Advice Scotland or checking with your local authority for a qualified money advisor.

For more information on the Mortgage Rescue Scheme, call 0303 444 0000 or visit the Communities website for further information.

Your Employment Status --SELECT-- Employed Unemployed Self-Employed Retired Student Your Total Unsecured Debts --SELECT-- £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £10,000 £11,000 £12,000 £13,000 £14,000 £15,000 £16,000 £17,000 £18,000 £19,000 £20,000 £21,000 £22,000 £23,000 £24,000 £25,000 £26,000 £27,000 £28,000 £29,000 £30,000 £31,000 £32,000 £33,000 £34,000 £35,000 £36,000 £37,000 £38,000 £39,000 £40,000 £41,000 £42,000 £43,000 £44,000 £45,000 £46,000 £47,000 £48,000 £49,000 £50,000 £51,000 £52,000 £53,000 £54,000 £55,000 Over £55,000 This includes unsecured loans, credit cards, council tax arrears, bank overdrafts etc.

Note - student loans cannot be included in a Trust Deed. Your Monthly Net Income This is your monthly take home pay including any other income

Example
Take home pay £1200
Child tax credit £200
Total net income £1400 Your Monthly Expenditure This includes all rent or mortgage payments and all other fixed outgoings that you pay each month.

Excluding your payments for your unsecured debt. Are You A Homeowner? --SELECT-- Yes No

(Homeowners) Estimated Equity None Don't Know 5000-10000 11000-20000 21000-30000 31000-40000 50000+ Equity Example:
Mortgage - 72k
House Value - 80k
Your Equity - £8000

Dont worry if you don't know your equity.
Just call us on 0141 221 0999

Your Nearest City --SELECT-- Glasgow Edinburgh Stirling Perth Dundee Aberdeen Inverness We have a network of Trust Deed providers throughout Scotland

Your location will help us recommend the best providers.

Title --SELECT-- Mr Ms Miss Mrs Other First Name Last Name Email Address Phone Number Why Do We Need Your Phone Number?

Although you will get an instant quote indication, we still need to contact you to get more detailed information regarding your financial circumstances.
All calls confidential.

Your privacy is important to us. Your Details are held in the strictest of confidence and we will only request information required to find your best solution. Your details will NOT be shared with third parties.

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