I’m on a low income and have few valuable assets, can I file for sequestration?
April 8, 2013
If you are feeling overwhelmed by increasing debt and relentless creditors chasing payments, you may have looked into the option of sequestration to write off your existing debt. But if you’re on a low income, you could have been turned away.
When an individual files for sequestration, creditors are repaid by the selling of debtors’ assets to clear the debt. For those on a low income with few valuable assets to sell, filing for sequestration is usually not an option. However, there is potential for those on a lower income to take this option through the LILA scheme.
LILA, which stands for ‘Low Income, Low Asset’ was launched back in 2008 and is available to Scottish residents. LILA allows individuals on a lower income, who have few valuable assets, to clear their debts when they are unable to repay them within a realistic time scale.
To qualify for the LILA route to sequestration, your weekly income cannot exceed the amount someone would earn working 40 hours on minimum wage, and your assets must not exceed £1,000 each, or £10,000 in total. To establish whether you’re eligible, debt solutions are always best discussed with a specialist debt adviser. At Scotland Debt Solutions, we can talk through these criteria with you in further detail as well as looking at your current situation, to see whether the LILA scheme can help.
Though this particular route to sequestration may sound like the perfect option, the usual disadvantages of bankruptcy will still apply. Your credit rating will still be impacted and the bankruptcy will be recorded on your credit history for six years. As you are probably already aware, this will make obtaining further credit very difficult during this time.
Most debt solutions have some disadvantages, but if you’re really struggling to keep your head above water, they may be the best way forward. At Scotland Debt Solutions, our impartial experts will always consider every available option to ensure you follow the best and most realistic course of action to repay your debts. So if you’re desperate to get your finances under control and be debt-free, call one of our experts today and we’ll ensure you get the best advice to fix your finances.
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