If you live in Scotland, and you’re having serious difficulty repaying your unsecured debts, there are some debt solutions that could be available specifically to people in your situation.
The LILA route into bankruptcy is one such solution. Let’s look at what exactly LILA is and how it works.
What is the LILA route into bankruptcy?
LILA stands for ‘Low Income, Low Assets’, and, as the name suggests, is a route into bankruptcy designed to help people with low earnings and little in the way of valuable belongings tackle their debts.
It’s aimed at people who can no longer afford to manage their debts – but for whom the ‘normal’ route into bankruptcy isn’t appropriate.
How does the LILA route work?
To apply for LILA, you’ll have to pay a small application fee – and if your application is accepted, you’ll then be entered into bankruptcy. As part of the legally binding agreement, your unsecured debts will be written off and your lenders won’t be able to proceed with any further action against you.
Bear in mind, however, that entering bankruptcy is a serious step and can seriously affect your ability to obtain credit in future.
Could I qualify for LILA?
The LILA route into bankruptcy could only be a possible approach for people with a low income and few valuable assets. To be eligible, you would have to meet the following criteria:
- You must earn no more per week than £237.20 – the standard national minimum wage for a forty-hour working week.
- You must have no assets worth more than £1,000 each, or £10,000 in total.
Additionally, if you receive income-based jobseekers’ allowance, income support or working tax credits, you’ll be treated as if you did meet the low-income test – even if your weekly income is actually higher than the £237.20 ‘cut-off point’.
Is LILA right for me?
If you have unmanageable debts, it’s important to find a way of getting back on top of them as quickly as possible.
Why not get professional advice – from debtadvicenow.co.uk, for example – today and find out if the LILA route into bankruptcy could be the most suitable approach for you?
Tags: Bankruptcy, Debt, lila, low income low asset, scotland, scottish