A creditor is any person or company that lends you money – usually a bank, building society or credit card company. So if you’re in debt, your creditors are the ones you owe money to.

An official credit file is kept by authorised companies, and contains details of your entire financial history regarding credit applications and any debts you might have. Creditors check this file when they are considering lending you money.

You have the right to request a copy of your credit file under section 7 of the Data Protection Act.

Yes, you will have access to all the same debt solutions, although there are slight differences with some of them. For residents of Scotland the equivalent of IVAs are called Protected Trust Deeds, and the direct equivalent of bankruptcy is called sequestration.

The main difference between IVAs and Protected Trust Deeds is that instead of lasting for up to 5 years, Protected Trust Deeds last for a maximum of 3 years. All other aspects are almost identical, so for more information you can either take a look at IVAs, or contact us now for immediate help.

With Sequestration, your creditors can only make an application to the court if you owe at least £1,500 rather than the £750 minimum required for bankruptcy. And the minimum period for sequestration is 3 years rather than just 1 year with bankruptcy.

The liability for business debts depends on the type of business you’re involved in:

¤	Sole Traders are responsible for all their business debts, in exactly the same way as they are for personal debts
¤	Partnerships have an agreement that defines the share of each partner – you should only be liable for your share of the debt
¤	Limited Companies are a legal form of business that exists independently of the people involved. Hence, shareholders and directors cannot be held responsible for any business debts unless they have acted as personal guarantors.

If you are in default of your monthly debt repayments, your creditors can apply to the court for a CCJ to be issued. A CCJ is a judgment issued by the court when you have failed to make the payments specified in your credit agreement. The court then sets you an affordable regular payment based on your individual circumstances.

Any CCJ will appear on your credit file for 6 years, and if it takes you more than 6 years to repay it, the creditor will re-register it with the credit reference agencies. However, if you can pay it in full within 30 days then it won't appear on your credit file at all.

The Scottish equivalent of a CCJ is called a Decree, and is issued by a Sheriff Court.

The Official Receiver is involved in every bankruptcy, and has a duty to investigate your affairs and send a report to your creditors. They also have to identify and protect your assets prior to the appointment of a Trustee, who will then sell them on behalf of your creditors.

A Trustee is appointed by your creditors during bankruptcy, and is responsible for realising your assets and sharing the monies out between them. In simple terms, this means they are responsible for selling your possessions for as much money as possible for the benefit of your creditors.

In Scotland, a Trustee also refers to the insolvency practitioner responsible for the administration of a Protected Trust Deed.

All our advice is overseen by licensed insolvency practitioners who are regulated by a number of professional bodies, including the Institute of Chartered Accountants of England & Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS). We hold our own Consumer Credit Licence, and comply with the industry best practice guidance produced by the organisation of business recovery professionals known as R3.

We are also fully registered under the Data Protection Act, ensuring all your personal details are kept strictly confidential. Further information is available in our credentials.