Debt Free Advice

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While sequestration will inevitably prove to be the correct route for clients in Scotland to pursue, further financial outlay and court charges can render this almost impossible. To combat this, Debt Free Advice also offer LILAs which, rather than being an alternative debt solution, are simply an alternative route to bankruptcy. As the name suggests, LILAs are specifically for those will low incomes and very little by way of valuable assets.

To qualify, your income must be equal to or less than a 40 hour week on minimum wage, excluding benefits or tax credits, and your combined assets must have no greater value than £10,000. They are also only available to clients bound by Scottish law and so won’t necessarily be for everybody. There are other qualifying criteria which your professional debt consultant will discuss with you following your Free Debt Review, along with any other options that are applicable to your circumstances.

Advantages Disadvantages
  • Most of your debt will be written off
  • Pay only for 3 years.
  • One affordable payment.
  • Protection from creditor action
  • Creditor contact will cease.
  • No further interest and charges
  • Many people do not qualify for a LILAdue to stringent acceptance criteria
  • Credit file/ability to take on credit effected for up to 6 years
  • Ability to obtain certain bank accounts effected
  • Your bank account may be shut down
  • You will have to sell any assets for the benefit of your creditors
  • You will be registered on the insolvency register

How Can a LILA Work For Me?
Since a LILA is simply a different route to sequestration, the ultimate outcome will be the same and you can expect to be free from debt within three years. Most sequestrations are completed within 12 months, although they vary considerably on a case by case basis.

Once the bankruptcy process has been completed and you have made your last payment, this will affect your credit file for six years, although you will finally be free from hefty debts and can continue rebuilding for your financial future.



Personal Loans
Credit Cards
Payday Loans
Store cards
Doorstop loans
HM Revenue
Custom Debts
Council Tax Arrears
Utility Bills

When people are struggling with debt it's more important then ever that they have access to effective advice. We work with partners to make debt advice easier and quicker to access, and to improve standards and quality across the sector.

Visit the Money Advice Service website for further info >>

Free No Obligation Debt Reviews
Debt Management Plans
Individual Voluntary Arrangements
Trust Deeds/Sequestration
Bankruptcy Service
Debt Solutions for Scottish Clients
Repossesion/Eviction Advice
Self-Help Budgeting Advice


Call Us: 0800 781 7615

IMPORTANT INFORMATION: Debt solutions subject to conditions and acceptance. Your ability to obtain credit will be affected in the short term and may also be affected in the medium to long term. Paying a lower amount each month may increase the time taken to repay the debt. The total amount our client's repay towards their debts may increase on certain debt solutions. If you enter into an individual voluntary arrangement (IVA), a debt relief order (DRO), a protected trust deed or becoming bankrupt the details will be recorded in the Insolvency Register.

* The free debt review consists of a detailed telephone interview with one of our Personal Finance Advisors who are experts in giving debt and money advice, and are regulated by the Financial Conduct Authority (FCA). This is completely free of charge, with no obligation, and you will be given a detailed breakdown of what your options are. If you chose to take one of the solutions offered to you by one of our chosen partners, there may be fees included. However you will be made aware of those before you contract in to any agreement, and you will be given plenty of time to think about what you want to do before making a decision. At no stage are you under any obligation and you are always protected by your consumer rights.
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