If you are a low income earner and you don’t have many valuable assets, and you have serious debt problems, the LILA scheme is designed to help you to go bankrupt. The LILA scheme is only available for residents of Scotland. LILA stands for Low Income Low Assets because it is a route into bankruptcy for people who earn below the national minimum wage for a 40-hour working week (currently £237.20) and have assets worth less than £10,000 in total. Once the bankruptcy order is made, the process is the same as a standard bankruptcy. In Scotland, you can only go bankrupt by normal means if...

Chapter 13 bankruptcy – or the “wage earner’s plan”, was set up to allow an individual with a regular income to make up a plan to repay his/her debts, in monthly installments. Even if this sounds like a good plan, it’s best if you look at it as a last resort. There are ways to avoid chapter 13 bankruptcy by carefully managing your debt and seeking professional help. The best solution out there for you is to find a debt counseling agency. A non-profit organization with a clear privacy policy and a wide range of services is what you should be looking for. Look around until...