Articles

Business Debt

Can a Winding Up Petition be stopped in Scotland?

The winding up procedure, also known as Compulsory Liquidation, is the process of forcing a company to close when it cannot pay its debts. A creditor, such as a supplier or HMRC, can take this action...

Businesswoman puts signature on document

Business Debt

What happens to personal guarantees in insolvency?

If your business is insolvent, you might be worried about the potential impact it can have on your own finances, particularly if you have signed a personal guarantee.

Debt arrangement scheme DAS is shown on the conceptual business photo

DAS

Disadvantages of a Scottish Debt Arrangement Scheme (DAS)

A debt arrangement scheme is a common agreement whereby Scottish residents in serious levels of debt can repay their creditors through consolidated monthly or weekly payments.

DAS

How do I apply for a Debt Payment Programme (DPP)?

If you’re struggling to pay your unsecured debts, a debt payment programme could help you to regain control of the situation, and become financially stable again.

Trust Deed

What’s the difference between a protected and unprotected Trust Deed?

A protected Scottish Trust Deed is legally binding and provides certainty over repayments, whereas, under an unprotected Trust Deed, repayments can change.

Sequestration

Consequences of sequestration (bankruptcy) in Scotland?

Sequestration is often a last resort for people in serious debt, and one that is taken only after all other options have been exhausted.

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Business Debt

What is an HMRC Time to Pay arrangement?

If you’re struggling with company tax debts, you can make a Time to Pay arrangement with HMRC to repay what you owe over a typical period of six months.

Sequestration

Getting a mortgage after sequestration

Sequestration is a serious form of insolvency action, equivalent to bankruptcy in the UK, which can affect your chances of getting a mortgage.

Trust Deed

Disadvantages of a Scottish Trust Deed

One of the most common debt-help agreements is a trust deed and this in large part due to the number of advantages that the trust deed process brings.

Business Debt

What action can creditors take against my company?

If you are struggling to pay company debts and face increasing pressure and threats of legal action from your creditors, it is a sign that your business is insolvent.

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Business Debt

Overdrawn Directors’ Loan Accounts

A director’s loan account (DLA) can become overdrawn if too much money is taken from the company that isn’t salary or a dividend. Directors’ Loan Accounts are useful when operated with caution,...

Business Debt

What are the risks of trading while my company is insolvent?

The directors of insolvent companies (companies that cannot pay their debts) have a legal duty to act in the best interests of their creditors.