A Scottish Trust Deeds is for people in debt that they are unable to repay it are designed to give them an affordable monthly repayment. The monthly payment is distributed amongst your creditors in proportion to how much is owed, it is a legally binding arrangement. You make one payment to an insolvency practitioner and they pass it on to your creditors.
Interest and charges will be frozen, you owe the sum of money at the time you entered the trust deed agreement. Everything paid after that date will be deducted from your balance nothing can go on it. It will last for approximately 36 months after which time any remaining debt will be written off.
You have to do an income and expenditure and prove what you have incoming and going out if you can prove the maximum it is possible to only repay 10% then at the end of the 36months the rest is written off. When the protected trust deed has started your debtors can take no further action they can have no contact with you.
Like everything there are some downsides, nothing to get worried about. Getting credit again will be a problem and your credit record will be bad - but the chances are it will already be, the negatives out way the positives anything to get your life back.
If the creditors do not accept the trust deed, then personal bankruptcy or sequestration should be applied for. This way the creditors will get even less money back so they tend to accept Scottish trust deed, even if they are unsure for little is better than nothing.
Is A Protected Trust Deed Better
A Protected Trust Deed is legally binding with all creditors. Once your application is in your creditors have 5 weeks to object to it. If anyone objects as long as they are not owed more than a third of the debt they cannot stop it.
You cannot put secured debt into a trust deed so to apply for a Protected Trust Deed you’re debt would have to be non secured and approximately £8,000 or more, and you must be able to repay at least £150 a month. New laws mean you’re house will not be sold to realize the debt however items of a particular value or you’re car could be seized. Though this is still better than bankruptcy when you would lose your house.
This arrangement suit those living in rented property best, but from 2010 your home is ot regarded as an asset.
Who Can Ask For a Scottish Trust Deed?
Anyone who cannot afford to repay their debt and is getting hounded by debt collectors should consider a Trust Deed. It is best to talk to your creditors before it gets to this stage, as many will stop interest and charges if you are willing to come to a repayment arrangement.
The only problem with this is if you default on payment they can take court action or sell the debt to a debt collection agency, they can be harassing. They can phone constantly. You can avoid this by applying for a Scottish Trust Deed.
So there is a way out of your debt contact Debt Support Trust.
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