Ms M had in the region of £50,000 of unsecured debts which she was able to manage until a change in employment and reduction in income. Ms M solely owned her property and had a motor vehicle worth less than £3,000 in value. After a thorough review of her financial circumstances we established that she could afford £145 per month. Under a Trust Deed it was unlikely that this payment would be accepted by her creditors.
On a Debt Arrangement Scheme it would take approximately 28.7* years to repay the debts. Ms M decided to proceed with Sequestration as it would not affect her property due to the small amount of equity or motor vehicle as it was valued less than £3,000. She will therefore repay a total of £6,960 into her Sequestration.
*Subject to using a free advice agency for the Debt Arrangement Scheme.
