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DMP Forum Looks Into Debt Management Scotland Proposed Reform |
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Debt management Scotland outcomes are being reviewed according to media coverage seen by the DMP forum team this this week. The Herald has reported that the AIB, under huge funding pressure, are considering whether reform of the current system is required in order to ensure a fair balance between debtors and their creditors. The DMP forum can report that the backdrop to the situation is that personal insolvency is running much higher levels per capita in Scotland than it is in England and Wales. The AIB’s chief executive, Rosemary Winter-Scott, is quoted in the Herald as saying that “fair and just processes” should be promoted and that focus should, “support the principle that those debtors who can pay should pay debts”. In the view of the DMP forum advice team, the implication appears to be that in some instances debt management Scotland options are being misused by debtors and practitioners. There is some evidence to support that this could be the case. There is no certainty at the current time as to what the changes to the outcomes of debt management Scotland advice will be. There has been some furore over the fact that personal insolvency ratios in Scotland run at twice the level seen elsewhere in the UK. The view of DMP forum advisors however is that this reflects a positive; namely that those in serious debt are not priced out of debt-relief as they often are in England and Wales. Here are the facts as they are seen by the DMP forum team. The debt management Scotland alternative to bankruptcy is known as sequestration. It costs just £100 to apply for sequestration compared to £700 for bankruptcy in England and Wales. The debt management Scotland alternative to an IVA is known as a protected trust deed. It lasts typically for 36 months compared to 60-72 months for an IVA. Scotland has its own debt management option known as the debt arrangement scheme. It guarantees a freeze on interest and protects a debtor from creditors; a debt management plan elsewhere does not do this. Has Scotland tipped the balance too far in favour of debtors with the current range of debt management Scotland options? Or are the residents of England and Wales unfairly harshly treated if they find themselves in serious financial difficulty? The opinion of the DMP forum advisers is that Scotland has a more accessible and balanced system than found elsewhere in the UK. With debt management Scotland options subject to change, the DMP forum considers that residents of Scotland who acknowledge that they are already struggling with debt should not delay seeking advice. A starting point might be our DMP forum where the advisors are able to provide information relevant to whatever part of the UK you live in including the very different debt management Scotland options. Our DMP forum experts are also able to direct people towards potential sources of help where required. |
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