Low Income Low Assets is a route to Bankruptcy

Low income low assets, Launched in April 2008 for people who have low income and low assets and reside in Scotland.

If you live in England, Wales or Northern Ireland the equivalent is a Debt Relief Order.

It is designed to enable individuals with low income and low assets to clear their debt because they are unable to repay them within a sensible timescale.

Criteria you must fulfil for Low Income Low Assets (LILA)

• Your income must be no more than the standard national minimum wage for a forty hour working week. This is currently equivalent to £243.20 a week

• If you receive income support, income-based jobseekers allowance or working tax credits you will be treated as meeting the low income test, even if your actual income is more than £43.20 a week

• You must not be able to meet your current repayments and charges

• You must not own one single asset worth more than £1,000 and total assets worth no more than £10,000

• You must not own any land or property

Things you need to know about Low Income Low Assets (LILA)

• The cost to apply for bankruptcy via LILA is £100 and granted by the Accountant in Bankruptcy if you meet the criteria above

• If you acquire any money (wages and pension proceeds excluded) or property before the date of your discharge, you may have to surrender these to your Trustee

• You are not allowed to start up or be involved in the day-to-day management of a limited company

• You are not allowed to act as a Member of Parliament, and there are certain other restrictions, such as acting as a member of any local council or school boards, etc

• You may have difficulties in obtaining credit after your discharge