Is a Trust Deed suitable for me?

Is a Scottish Trust Deed or protected Trust Deed Suitable for me?

A Trust deed is a debt solution for people living in Scotland .It is a formal agreement between an individual, who and a licensed insolvency practitioner (IP), who is thereafter called the Trustee. The trustee will put a formal proposal to the creditors outlining your financial position and suggest an affordable sum be paid by yourself .If the creditors approve the proposal the trust deed then becomes protected.

This arrangement means you will pay off as much of your debts over a period of usually 3years as your disposable income realistically allows for. The sum of money paid into the solution is decided by your trustee after a complete income and expenditure has been carried out ensuring the agreed figure is manageable and leaves sufficient for a basic lifestyle.

Once the trust deed has became protected creditors have agreed to the terms of the arrangement and thereafter cannot telephone or write to you directly as all correspondence must go through your trustee .This should ensure you no longer receive harassing communication . Once the trust deed is approved and it becomes protected all interest and charges become frozen ensuring your debts do not continue to rise through your solution.

As a trust deed is not as formal as bankruptcies many people prefer this particular solution. Under the trust deed solution your name will not be published in any newspapers as is the case with bankruptcy or sequestration however you should be aware that only unsecured debts that can be included in a protected Trust.

Another benefit a trust deed has over bankruptcy or sequestration is you can either continue to be a company director or indeed become a company director. This is not the case with bankruptcy. .