Sharon McDougall - 25th October 2021 - 3 minutes to read
If you have built up debt from gambling, you may be able to write off part or all of the debt via a formal Scottish insolvency route. Not all insolvency solutions allow debts to be written off, but you may be eligible for a trust deed if you meet certain criteria, with sequestration also being a possibility in serious cases of debt.
Trust deeds generally last for a period of four years, and will appear on your credit file for six years from the starting date. Trust deeds have numerous advantages for those struggling with unmanageable debt, including learning better money management which will hopefully allow you to live a life free from debt following the conclusion of the trust deed agreement.
A trust deed is an arrangement made with your creditors to repay an agreed proportion of the total sum owed. This might include other monies in addition to the gambling debt, but if some or all of the arrears are related to gambling, it is likely that you will need to address the gambling habit or addiction before a trust deed is granted.
Sometimes proof is needed that you have not gambled for a period of time before a trust deed is able to be arranged. Although this is difficult to prove with any degree of certainty, your Trustee may issue a request to see your bank statements for several months previously to check for any gambling related transactions.
Get a rough indication of what your monthly repayments might be under each of our different debt solutions.
What is a protected trust deed?
A trust deed becomes ‘protected’ once a majority of your creditors have agreed (or at least not objected) to the terms and proposed monthly payments. Up until that time the trust deed remains unprotected in the sense that your creditors can still legally pursue you through the courts for payment, and could even petition for your sequestration (bankruptcy).
Once the trust deed becomes protected, all action against you ceases and creditors are no longer able to contact you directly. In essence you are protected from creditors so long as the terms of the deed continue to be met.
An alternative to a trust deed is a process known as sequestration. Sequestration is the Scottish term for bankruptcy and is the most serious personal insolvency procedure there is. Sequestration will see all of your unsecured debts written off, although you will then be faced by a number of restrictions regarding your future finances. Your access to credit will be severely limited for many years following the sequestration order meaning you may find it hard, if not impossible, to obtain even small amount of credit; being sequestrated may affect your employment, particularly if you work in the legal or financial industries; and your home may be at risk.
In the case of gambling debt, if you choose to enter bankruptcy voluntarily with a view to starting afresh, your circumstances will be scrutinised to see if you have spent or gambled recklessly in the time leading up to the bankruptcy application. If this is found to be the case, an order that restricts you from entering bankruptcy may be issued.
In some instances you might be forced into bankruptcy by your creditor(s) and in these cases so such restrictions will apply.
Scotland Debt Solutions can advise on all types of debt, including those caused by gambling. Contact one of our expert team to arrange a free initial consultation.
Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...
If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...
Why Choose Us
Speak Direct With
A Qualified Adviser
We Don't Operate
5 Offices in Scotland
Ask us About
Fully Regulated Advisors
From a Reputable Firm
Helping Scots Get
Out of Debt Since 1989
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
We can help you with...
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debtsFind out More
A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.Find out More
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.Find out More
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.