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Advertising Substantiation

Achieving good outcomes for our clients is at the heart of the Cleanslate business. We pride ourselves on providing clear, fair and tailored advice to individuals who are struggling with their debts, ensuring they find an appropriate solution and are supported throughout it.

The main advantages and disadvantages of each of the formal debt solutions we provide are outlined below.

Advantages & Disadvantages of Formal Debt Solutions in Scotland

Debt Arrangement Scheme
Protected Trust Deed
Sequestration

Advantages of the Debt Arrangement Scheme


We will agree a personalised debt repayment plan based on your needs and lifestyle.


Your monthly payments will be based on what you can afford.


The interest on your debt will be frozen.


You will be protected against creditor action.


Your assets will be protected meaning you will not be asked to sell your house, or your car.


We will deal with creditors on your behalf.


If your circumstances change, DAS can be flexible, including options to request to vary the plan and/or take payment breaks if your income has significantly reduced.

Disadvantages of the Debt Arrangement Scheme


Your credit file will be updated to reflect the fact you are in a debt payment plan and this will remain visible for six years.


You may find it difficult to obtain new credit or use an overdraft while you are in a debt payment plan.


You will be required to make all payments towards your debt payment plan, and continue to pay your monthly expenditure and bills. If you fail to do so, your plan could be revoked.


If you are required to submit a self assessment tax return, you must do so by the required deadline. If you fail to do so, your plan could be revoked.


Interest & charges are only frozen while you keep to the agreed upon plan. If your plan is revoked due to breach of its conditions, your creditors may add back on interest & charges which had been frozen previously.


Our Statistics

Find out more about the data behind the statistics we use in our financial promotions.

Debt write off occurs upon successful completion of a protected trust deed or sequestration where it has not been possible to pay 100p in the £ to a debtor’s creditors.

In 2023, we completed the administration of 553 trust deeds and bankruptcies where Lynne Flower or Blair Nimmo were appointed as trustee. The average debt write off in those cases was 84%.

From 1st January to 31st July 2024 we have completed the administration of 447 trust deeds and bankruptcies. The average debt write off in those cases was 86%.

All reference to debt write off in our financial promotions consistently uses the phrase "up to 82%". Whilst higher write off percentages have been achieved in many cases, as illustrated by the average figures quoted above, we want to avoid setting unrealistic expectations with consumers, so have referred to a figure lower than the average achieved throughout our financial promotions.

Once a trust deed has been signed, creditors are initially notified by way of a notice of trust deed on the Register of Insolvencies. There is then a 5 week notice period during which if any creditor wishes to object to the trust deed, they must do so in writing to the Trustee.  Assuming no more than a third in value or majority in number of creditors have objected to the trust deed, the Trustee will then take steps to have the trust deed recorded as a protected trust deed on the Register of Insolvencies.

In the period between 1st November 2023 to 31st March 2024 there were 156 trust deeds signed appointing Lynne Flower as Trustee. 153 of those have achieved protected status, which is a 98% protection rate.

A trust deed proposal requires the consent of creditors to become a protected trust deed. The costs of administering a protected trust deed, including the Trustees fees, are deducted from the funds realised and the remaining sum is paid to creditors as dividend payments.  In our experience, where someone's monthly disposable income is less than £100 it would be unlikely creditors would agree to such a proposal, unless there were other assets which would be realised to increase the return to creditors.

In bankruptcy, you are required to pay your full disposable income for four years as well as realising the value of your assets. The Trustee's fees are covered from the realisations in bankruptcy, as are the additional costs of administering the case and therefore Cleanslate has a policy of requiring a minimum disposable income of £100/m in order for one of our Insolvency Practitioners to take on the role of Trustee in bankruptcy.

There is no requirement to gain creditor consent to the bankruptcy application and therefore if your disposable income is lower than £100 per month and bankruptcy is your preferred choice, it still remains an option for you. In this case, we would recommend your get in touch with your local free money advice agency, details of which can be found at moneyhelper.org.uk.

In DAS you are required to repay the full amount of your outstanding debt.  Whilst there is no statutory minimum or maximum timescale for DAS, it is important to ensure that a proposed payment plan under DAS is viable and sustainable for the customer as well as fair and reasonable to their creditors.  In our experience, unless the outstanding debt is very low, it would be unusual for a DAS proposal to include a monthly payment of less than £100.

Cleanslate is a trading style of Interpath Ltd, which was formed following the sale of KPMG in the UK’s Restructuring practice in May 2021. All the staff involved in the Scottish personal debt solutions practice transferred from KPMG to Interpath Ltd during the transaction. References to number of clients helped are to the period from 1999 when KPMG in the UK first started providing advice on and administering protected trust deeds, through to the current day.
This page was last updated on 13th August 2024
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