Is Bankruptcy the right option for you?

Going bankrupt or sequestration in Scotland is one option for writing off, clearing and getting rid of your debts in order repay your creditors. But it’s not that simple as said. Your choices may have a serious impact in terms of your reputation and credibility. Hearing the word bankruptcy sounds scary because we know that high profile personalities and even business magnate may experience this. If you feel that your whole financial status is in quicksand and your assets are worth more than your debts, you might want to assess your current situation. Actually, there’s no minimum amount of debt necessary to go bankrupt. It is when you’re indebted more than you can afford to pay. Some factors and reasons for filing for bankruptcy are series of unemployment or job loss, large medical bills, mismanagement of assets and excess use of credit and also divorce/separation.
Bankruptcy might sound a promising solution to your problems and providing an escape from numerous calls and mail that seem to bother you; but this might also give you another set of problems. There are certain limitations and restrictions after filing for Bankruptcy. Being implicated with running or being involved in a company without permission from the court is not allowed. Working and getting certain jobs may be a little bit difficult for you. You will find it harder to obtain credit cards since the details of sequestration would be entered on a public online register. It would also be very difficult to get a mortgage, property and other luxurious possessions.
Still, the main advantage of bankruptcy is that it frees the people from their debt in order to make a new start and jump starts their life. You would be debt free in a short amount of time and once you file, you will receive a protection from almost all types of collection activity from your debtors. Applying for sequestration is a big step and if you really consider it as an option, there are several ways to file. To start off, you may want to consider consulting a lawyer and also seek professional debt advice before deciding the course of your action. You must also be resident in Scotland or residing in Scotland within the last six months.
During the filing of Bankruptcy, certain documentation regarding your income and situation would be assessed by the court. Once eligible, you may declare Chapter 7 or Chapter 13 bankruptcy. Once approved by the court, an agreement would be made in which all parties must comply to and it means that all creditors involved can no longer pursue the debtor.  Note that not all debts can be eliminated such as student loans and also will not ease any obligations to pay alimony and child support. You might feel that you’re alone and scared, but there are still options for you. If you need some advice and seek some clarifications, you may checkout This site would give you the advantages and disadvantages of sequestration and how it can help you.

A simple process to apply for a logbook loan

People generally feel stressed when they are in urgent need of funds. It is difficult to know where to go and from where to arrange funds. Criss does not write a letter to you before arrival. A person can only try to borrow funds from good friends and family members. But sometimes, that doesn’t help you. What is your last resort? Going to a bank is another aspect which involves more time, formalities, cost and no surety of approval. It may also happen that your application gets rejected on the basis of poor credit history. Then what will you do?
There should be a scope of instant approval and disbursement of loan within a day or two. Yes, you can apply for a logbook loan. The popularity of logbook loans has increased as they are easy to apply and approve. It involves minimum hassles and liberal policies for approval as compared to bank term loans. Yes, there are some similarities as well. Both the loans involve the concept of collateral security. In a bank loan, if you take a house loan, you have to keep your house as a security; whereas here, when you apply for a logbook loan, you have to submit your car or any other vehicle as a security. Do remember it is not a vehicle loan. Vehicle loan is always taken for the purchase of a new vehicle where the new vehicle is used as a security. In the logbook loan, you keep your existing vehicle as a security to obtain funds to be used for any purpose. The lenders are not concerned with the reason of need of funds. The objective is to take your vehicle as a security and get payment of instalments on time.
Many people feel stressed about their poor credit history. You must understand the importance of credit history. No institution can give you a loan without checking your credit history. You must try to make efforts to improve and maintain the credit history by paying your mortgage instalments and credit card bills on time. The moment you miss to pay, which is also known as bouncing of payment or cheque, your credit score decreases. If your credit score is good, you can get a higher amount of logbook loan. It acts as a surety that you have the ability to pay and have a good track record of payment.

Getting yourself out of debt

The first and most vital step in dealing with debt problems is to talk to the companies that you owe money to, also known as you creditors.
However, a combination of worry and fear can make this part the hardest of all, which only exacerbates the problem the longer it goes on. Talking to your creditors means they are kept informed of the problems you face and reasons for the payment delays, without them knowing this, they often simply assume it is a deliberate attempt to avoid paying and resort to legal proceedings straight away.
Where do we start?
Before contacting creditors it is important to fully understand your own situation, list out all of the money owed and any money you still have, and see if any of the higher priority debts can be paid.
The high priority debts are those that, if remain unpaid, have serious consequences for your life. Examples of this would be rent or mortgage arrears, because the consequence is obviously losing your home. Taking your list of debts and putting them in an order of priority helps to form a plan to tackle the issues, by allowing you to deal with each debt from top to lowest priority in order.
Aside from the mortgage and rent mentioned, other debts that could be considered priority are government debts, such as income tax and VAT, child maintenance or council tax. These could have bailiffs visiting your home or even land you in prison for non-payment so again, the consequences for not dealing with them push these debts up the ladder of importance.
Energy bills would be the next rung of the ladder, having fuel supplies disconnected is not a good situation, so they warrant dealing with urgently.
Unsecured debt, court fines and store cards are the lower priority types of problems to be dealt with, although that is not to suggest such debts are not serious.
Let’s talk
Once you have your debts in priority order and understand what is owed on each and how much, if anything, you can repay, then you can begin to contact the creditors in order to see if there is an amicable solution. If your problems are temporary, such as a redundancy cutting your income but with new employment on the horizon, explain that. Always try to be honest and offer your view on the debt situation with each creditor.
It is important to let the creditor see you are working to deal with the debt and working to a solution that they are happy with, because doing this can avoid any legal proceedings against you if the creditor can see a solution without them.
The aim in all of this is to try and agree a deal, either a new repayment plan you can afford (it is important to only take on new payments you can actually maintain, not doing so will make the legal route far more likely) or other ways to deal with the debt. Being honest and open about your situation, and most importantly talking to the creditors, can achieve that.

Credit Card Debt Advice

Credit card debt tends to increase rapidly. Unless you are able to curtail your expenditure, your credit card debts are going to rise up so fast that you won’t even be able to pay them back within the same month. Now, there are a lot of problems associated with paying off your credit card debts. First of all, failure to make payments on time will result in interest being piled on to your debt amount, which means that the overall amount will continue to increase. Since most people find it difficult to manage their credit card debt properly, here are a few pieces of advice that can prove to be of help:

Stop using the card immediately

Probably very straightforward, but is is still not practiced as frequently as it should be. If you have outstanding debts on a credit card, you need to stop using that card immediately and resort to cash payments. If you can’t, then you need to cut down your expenses altogether. Most people tend to think that the money from credit cards belongs to them; they forget that it belongs to the lenders. Therefore, it is important to cut down as quickly as possible.

Create a repayment schedule

Repayment schedules are probably the most effective option for people who are looking to clear off their bills. First of all, talk to your bank about the outstanding amount on your credit card, and then confirm with the bank all of the outstanding payments that are left. Then, create a proper repayment schedule to follow, and make sure that you stick to it. A lot of people often create repayment schedules, but fail to adhere to them. If you want to get rid of your credit card debts once and for all, you need to stick to the schedule!