What does FORMAL bankruptcy mean

[mikeman]

Hi, Ive recently had a call saying my Scottish Trust deeds has failed, I had debt with a bank which might have failed it. I have paid 3 lots of £250 and did not expect it to fail, its taken so long to get going.
A couple of questions.. I was told by my financial advisors that FORMAL bankruptcy is the next option, What does this mean and what happens with my car and do Im get those payments of £250 back.
Thanks

[J-DOUBLEYA]

if your in Scotland then you will have to apply for sequestration.

[Jo Rolland]

Hi Mike

The company dealing with your proposed Trust Deed should be able to advise who objected.

Do they intend to reinburse the £750 you paid?

Was your Trust Deed advertised in the Edinburgh Gazette?

I deal with Scottish debt and if you want to call me I can go through it for you.

[mikeman]

Hi Jo,

Thanks for the reply. I contacted Thomas Charles initially and paid the first two payments of £250 to them. A Scottish company Martin Aitken (Tough Debt Solutions) then took over and i paid them the initial £250 charge, then a direct debit was set up for £250. The first payment was taken last month and only last week I was informed my IVA had failed. So have I basically paid 4 months of £250 which i could have paid my creditors for no reason?
They have sent my debtors petitions now to sign and send back.
Do i get the money back from them before i go down the bankruptcy route?

[Adam Davies]

Hi
I believe that TC offer a full refund if your IVA/STD is unsuccessful,so contact them asap.
Unlike an IVA a unsuccessful Trust Deed leads to automatic bankruptcy.
Jo will correct me if I'm wrong

[Jo Rolland]

I would like to be able to discuss this with you Mike if possible.

[mikeman]

I am available today at any time if you want me to PM you my mobile number

[Jo Rolland]

Mike, give me a call on 0800 043 6444 so i can talk you through it.