Self-employed debt advice in Scotland

Debt help and advice for self-employed individuals in Scotland

When business debts begin to spiral out of control, action must be taken to address the root cause of the problems being faced and prevent any further losses being accrued. When a business is operated through a limited company, this may involve placing the company into liquidation; when a business operates via the self-employed model, however, the situation is different.

As a self-employed individual, your finances and the finances of your business are linked. Essentially, in the eyes of the law, you and your business are part of the same entity. This means that if your business begins to experience financial difficulties, you as an individual, are personally liable for any debts accrued by the business.  

While a director of a limited company could place their business into liquidation without this affecting their personal assets, the same cannot be said for those who operate as self-employed.

As Debt Arrangement Schemes can last for several years, they are designed to be flexible and take into account the possibility that your circumstances could change during the course of the arrangement. Your monthly repayment can be reviewed and either increased or decreased according to your income and outgoings.

Sequestration – Sequestration is the Scottish version of Bankruptcy and is often only considered as a last resort when it comes to resolving debt problems. However, for those situations where debt has spiralled out of control, sequestration can offer individuals a way out of their financial problems and the chance to start afresh.

For self-employed individuals, debt from running a business – and the associated pressure – can quickly mount up, particularly if money is owed to HMRC. You should ensure you speak to a registered money adviser or licensed insolvency practitioner when considering sequestration as there may be an alternative solution which is more appropriate.

How Scotland Debt Solutions can help with Self-employed business debts 

At Scotland Debt Solutions, we are a team of licensed insolvency practitioners with decades of experience of helping individuals and business owners navigate through their toughest financial problems.

We help individuals just like you every single day and there is nothing we haven’t seen before. No matter how bad you feel your situation is, rest assured there is a solution out there which can help. Take the first step today and speak to the team at Scotland Debt Solutions.