LILA

How could the LILA scheme help?

An alternative route into bankruptcy
If you don't qualify for bankruptcy because your lenders haven't started legal recovery action, but you don't have enough disposable income to enter another debt solution, LILA could be an option.

Writes off the unsecured debt you can't afford
If your bankruptcy is agreed, the unsecured debt you can't afford will be written off when you are 'discharged'. This normally takes place after a year.

Makes room for your other living costs
Repayments towards your unsecured debts will be stopped once your bankruptcy has been agreed, so covering your other essential costs should be much easier.

Would I qualify for LILA?

You may qualify for bankruptcy through the LILA scheme if:

• Your unsecured debts have become completely unaffordable
• Your weekly income is no more than the equivalent of the minimum wage, based on a 40-hour working week (currently £237.20) - not including benefits or tax credits
• Your assets are worth no more than £10,000 in total, and you have no single asset worth more than £1,000

Is LILA right for me?

Even if you qualify for bankruptcy through the LILA scheme, it may be that there are other more appropriate debt solutions available. That's why it's important that you discuss your options with an expert before making any decisions.

Our expert debt advisers are here to help - simply call 0800 970 7724 and they'll help you decide which solution best meets your needs.

Things to keep in mind

Remember that LILA is just one route into bankruptcy - and the consequences of entering into bankruptcy will still apply. In particular, your credit rating will be severely affected for six years, which is likely to make obtaining further credit very difficult in that time.

But if you are genuinely struggling and you don't get the help you need, the consequences could be even worse - so don't hesitate to get in touch.