• Administration Orders (do not apply in Scotland)
  If a court judgement has been made against you, you can apply to the court for an Administration Order if you have a number of small debts (a maximum of £5,000 in total).  You then pay the court a regular amount which they will distribute to the creditors on your behalf (a small fee is charged) and your creditors cannot take any further action against you. 

• Bankruptcy (Sequestration-Scotland)
  If you owe a lot of money, own very few assets and can see no way of ever repaying your debts then bankruptcy could be a solution for you.  When you are declared bankrupt your assets are shared out fairly amongst your creditors.  Some assets get protected automatically under bankruptcy, an Official Receiver will have judgement over any others but it is likely that you will lose some of your assets completely.
  
  The fees are quite high and the consequences are very serious. If your creditors petition for a bankruptcy order then you should get professional help immediately.

• Individual Voluntary Arrangement -I.V.A.
  Protected Trust Deed (Scotland)
  You can also resolve your debt problems through an IVA (England/Wales) or a Protected Trust Deed (Scotland).  An IVA is a legally binding agreement between you and your creditors. Under an IVA, your debts are frozen and you make a formal proposal to settle your debt within a specific period (usually five years). After this time the debt is written off.
  
  The main advantage of IVA’s over bankruptcy is you are more likely to be able to keep assets such as your car and home. Also, once the IVA has ended the restrictions are less severe than for someone who has been declared bankrupt.  There are various qualification criteria and not all debts can be included under an I.V.A.
  
  The costs to set up an IVA are quite high and they can only be drawn up by an Insolvency Practitioner. You should always get specialist advice before entering into an IVA.

Further information on debt advice and bankruptcy in Scotland can be found on the Accountant in Bankruptcy website www.aib.gov.uk