Accountancy Firm PKF has predicted that over 400 Scottish residents will go bankrupt every week in 2012 due to the continuing poor economics.
Sequestration (the Scottish term for bankruptcy) the firm predict that over 20,000 Scots will have entered this or a Protected Trust Deed (PTD) by the end of 2011 and that figure will continue to rise throughout 2012.
PKF predict a rise due to further cuts on the household budget; public sector cut backs, hours being cut and wages being frozen and no sign of an upturn in the economy.
The firm also warned that any increase in the base rate of interest would cause an alarming increase in the amount of homeowners going bankrupt.
A spokesperson for PKF said: “The dramatic rise in the number of more affluent Scots being made bankrupt is a further sign that the after effects of the recession are spreading among all sectors of society with the result that I believe all personal insolvencies will continue to rise and remain at high levels for several years to come.”
He also said since LILA came out in 2008 Scottish bankruptcies have steadily increased as many struggling Scots have taken advantage of this cheap way into bankruptcies when they have low assets and low income.
However recently these numbers have fallen and there is an increase in people entering a Protected Trust Deed .This they predict would peak in 2012 as job losses, overtime bans, no increase in wages and personnel circumstances all take their toll on the middle class in Scotland.
“People entering a Protected Trust Deed are more affluent as they have a disposable income and are able to pay something towards their debt“.
“Before the recession if these people were struggling with their debt they would release equity on the ever increasing property they owned , However nowadays property prices are stagnant and banks have a great reluctance to lend at such a volatile time“. This leaves many with little option.
Showing posts with label debt problems scotland. Show all posts
Showing posts with label debt problems scotland. Show all posts
Wednesday, 25 January 2012
Financial advisor jailed
Ryan Burnside, 35, has been jailed for a period of 2 years and 4 months for defrauding grandmother, Margaret Gallivan of her life savings using the pretext he was investing the money in a Lithuanian bank according to the Stirling Observer.
The Financial Services Authority (FSA) had banned Burnside working as a financial advisor prior to him obtaining £150,000 by fraud.
While Mrs Gallivan believed her money was being wisely invested the reality was Burnside was spending the money feeding his gambling addiction in casinos.
Whilst working for Investment firm Albannach in 2008, he was assigned Mrs Gallivan as a client of the firm. However Burnside was dismissed shortly after by Albannach and was no longer eligible for registration with the FSA, despite this he purported to still be employed in a financial advice capacity.
In order to alert people to the fact that Burnside was no longer authorised under the Financial Services and Markets Act 2000 a statement was released by the body in August 2010 to that effect. Unfortunately for Mrs Gallivan, she was unaware of this and was conned into giving Burnside more cash as Burnside told her some of her initial investments were under performing.
Mrs Gallivants reported Burnside after her son discovered he was no longer registered with the FSA to give financial advice. Burnside was subsequently arrested where he pled guilty to obtaining 150,000 by fraud whilst pretending to be a financial advisor.
At court, solicitor Frazer McCready explained, although Burnside had previously enjoyed a basic salary of approximately £75,000 per annum he had accrued debts of £40,000 after starting to gamble in 2005.
As noted in the Stirling Observer, Sheriff William Gilchrist told Burnside: “This was a gross breach of trust. Imprisonment is inevitable and the only issue is the duration. I have taken account of the amount, which was substantial , the period over which this offence was committed and the effect on the victim who has effectively been defrauded of her savings.”
The Financial Services Authority (FSA) had banned Burnside working as a financial advisor prior to him obtaining £150,000 by fraud.
While Mrs Gallivan believed her money was being wisely invested the reality was Burnside was spending the money feeding his gambling addiction in casinos.
Whilst working for Investment firm Albannach in 2008, he was assigned Mrs Gallivan as a client of the firm. However Burnside was dismissed shortly after by Albannach and was no longer eligible for registration with the FSA, despite this he purported to still be employed in a financial advice capacity.
In order to alert people to the fact that Burnside was no longer authorised under the Financial Services and Markets Act 2000 a statement was released by the body in August 2010 to that effect. Unfortunately for Mrs Gallivan, she was unaware of this and was conned into giving Burnside more cash as Burnside told her some of her initial investments were under performing.
Mrs Gallivants reported Burnside after her son discovered he was no longer registered with the FSA to give financial advice. Burnside was subsequently arrested where he pled guilty to obtaining 150,000 by fraud whilst pretending to be a financial advisor.
At court, solicitor Frazer McCready explained, although Burnside had previously enjoyed a basic salary of approximately £75,000 per annum he had accrued debts of £40,000 after starting to gamble in 2005.
As noted in the Stirling Observer, Sheriff William Gilchrist told Burnside: “This was a gross breach of trust. Imprisonment is inevitable and the only issue is the duration. I have taken account of the amount, which was substantial , the period over which this offence was committed and the effect on the victim who has effectively been defrauded of her savings.”
Monday, 12 December 2011
Trust Deed Scotland; Glasgow, Edinburgh, Falkirk, Aberdeen...
prospect ,it is important to seek professional help and advice once you decide to explore which solution is best for your circumstances. One solution that may be suitable for you is called a Trust Deed. This option is available to people living in Scotland.
A Trust Deed merges your debts into one place (very much as an IVA does in England Wales and Northern Ireland) and thereafter one monthly sum of money is paid towards the debt. Once you decide to enter a trust deed you will be appointed a trustee who will carry out a complete income and expenditure in order to establish an affordable monthly payment with yourself.
This should ensure you can afford to make the monthly repayment and still have sufficient left to lead a basic lifestyle over the term of the trust deed.
After a period of approximately 3ys (thirty six months) any outstanding debts are written off leaving you free of debt or obligation.
A trust deed is often much preferred to bankruptcy or sequestration as it does not have the same constraints for instance you can still be or become a company director whilst in a trust deed .Your name does not appear in any newspapers with a trust deed as it does when entering bankruptcy.
It is important to note however that once you have entered a trust deed you should not apply for further credit for the duration of the solution. Once you have entered a trust deed and it has been approved by your creditors the case then becomes (protected).This means all your creditors must agree to the terms of the trust deed and accept that any outstanding sums due to them after the duration of the solution will be written off.
Trust deeds are a better solution than bankruptcy if you have any assets; this is due to the fact that in a bankruptcy solution you would most likely be forced to sell them in order to pay them towards your debts. A trust deed will also allow you to be a company director should you choose.
You have two choices when it comes to trust deeds in Scotland. These are between a protected and unprotected agreement.
Once you have entered a trust deed your creditors are not permitted to contact you in relation to the debt .They must liaise only with your trustee.
Trust Deed in Scotland
Trust Deed's are available to people over the age of 18, residing in Scotland for the last 6 months and who meet the criteria. You can have Trust Deeds throughout Scotland including Glasgow, Edinburgh, Falkirk and Aberdeen.
A Trust Deed merges your debts into one place (very much as an IVA does in England Wales and Northern Ireland) and thereafter one monthly sum of money is paid towards the debt. Once you decide to enter a trust deed you will be appointed a trustee who will carry out a complete income and expenditure in order to establish an affordable monthly payment with yourself.
This should ensure you can afford to make the monthly repayment and still have sufficient left to lead a basic lifestyle over the term of the trust deed.
After a period of approximately 3ys (thirty six months) any outstanding debts are written off leaving you free of debt or obligation.
A trust deed is often much preferred to bankruptcy or sequestration as it does not have the same constraints for instance you can still be or become a company director whilst in a trust deed .Your name does not appear in any newspapers with a trust deed as it does when entering bankruptcy.
It is important to note however that once you have entered a trust deed you should not apply for further credit for the duration of the solution. Once you have entered a trust deed and it has been approved by your creditors the case then becomes (protected).This means all your creditors must agree to the terms of the trust deed and accept that any outstanding sums due to them after the duration of the solution will be written off.
Trust deeds are a better solution than bankruptcy if you have any assets; this is due to the fact that in a bankruptcy solution you would most likely be forced to sell them in order to pay them towards your debts. A trust deed will also allow you to be a company director should you choose.
You have two choices when it comes to trust deeds in Scotland. These are between a protected and unprotected agreement.
Once you have entered a trust deed your creditors are not permitted to contact you in relation to the debt .They must liaise only with your trustee.
Trust Deed in Scotland
Trust Deed's are available to people over the age of 18, residing in Scotland for the last 6 months and who meet the criteria. You can have Trust Deeds throughout Scotland including Glasgow, Edinburgh, Falkirk and Aberdeen.
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