If you need debt advice we can help

[Phil81]

I wondered if you can offer any help? I have just moved abroad from Scotland to Slovakia due to a job change and I am now struggling with my debts that I had in Scotland such as credit cards. My monthly income is lower and also in Euros so this makes a huge difference to me.

What opportunities if any are available for me to manage my debt whilst I am living abroad otherwise I am soon going to be in the position that I cannot afford to live from one moth to the next.

Any assistance or information would be fantastic.

[Geraldine]

Hello Phil81 and welcome. I think the rulesfor Scotland are the same as England i the sense that as long as you have not been out of the country for more than three years you can still consider options such as a Trust Deed or Debt Arrangement Scheme. More information about both of these can be found here:

https://www.beatmydebt.com/scottishtrustdeeds/index.htm
https://www.beatmydebt.com/debt-arrangement-scheme.htm

How much debt do you have and are you a homeowner? If you can give us this information I am sure we will be able to help you chose the right option.

[Amy Jellings]

Hi Phil81.

I'm glad to hear that your move was very recent. I'd strongly suggest taking professional advice on your options as soon as you possibly can before the number of options begins to shrink.

Do you retain any strong links in Scotland. For example, do you own a home there?

[James Falla]

Hi there Phil81

As you have only just moved to Slovakia you will still be eligable to apply for a Trust Deed or DAS. If you can give us a little more information about your circumstances I am sure we will be able to advise you further.

[Phil81]

Thank you all for your replies and for the information about Trust Deeds and DAS. My debts are about £22k. I do own a share in a property in Scotland. However it is currentl occupied by my wife - we are separated (Although not divorced). She is paying the mortgage but we also have a secured loan which I have to pay. With the secured loan there is no equity in the property. As I have a property does this mean that I would have to go down the DAS route? I cannot risk having to sell or remortgage as my wife simply will not agree to that.....

[Steve Jackson]

Hello Phil81

Given that there is no equity in your property, the Trust Deed option is the best for you. Your house would be valued at the beginning of the Trust Deed and given that there is negative equity it is taken out of the equation. Even if house prices rsie, it is not revalued again at a later date. As such your house would be protected and your debts would be cleared in 3 years compared to having to pay them in full over many more years in a DAS.

[Amy Jellings]

Hi Phil81.

The fact that you retain this strong connection to residence in Scotland is helpful. Even so, it will probably be better to keep moving towards doing something sooner rather than later.

Having no equity in your property is helpful in terms of a trust deed. You still need to be careful to use a trust deed firm that will clarify this lack of equity at the start of the process and give up the interest in the property they otherwise would have had. You'll want this confirmed in writing before you sign the trust deed. Otherwise, the risk is that you home could later be looked at again if equity develops. Don't use a trust deed firm that charges £500 to "protect the equity" in your property in the way I have described. Plenty will do the same without charging anything at all so it's a waste of your money.

I don't (at this stage) agree with the comment that a trust deed is the best option for you as I don't think we have enough information to make that judgement. How much can you afford to pay towards your debts each month do you think? Would you rather repay your debts in full, or is putting them behind you soon the most important thing for you? Is a formal insolvency a concern in any way connected to your profession?

The debt arrangement scheme may well be a valid option for you as well depending upon how much you can afford to pay towards your debts each month. DAS doesn't take your property into account in the way it would be for a trust deed or sequestration (bankruptcy).

Sequestration may well be the best option if your capacity to repay towards the debts each month is limited.