Repaying Debt Scotland: Trust Deed

Trust Deed Scotland

If you are having difficulty repaying a large amount of unsecured debts and you happen to live in Scotland there is a solution available.

You may wish to consider entering into an agreement with your creditors through a licensed Insolvency Practitioner (also known as a Trustee).Taking this route is legally binding it is called a Protected Trust, or also known as a Scottish Trust Deed. A Trust Deed is a debt solution which is less severe than bankruptcy or sequestration and is the Scottish equivalent to the English version called an IVA (Individual Voluntary Agreement). Within such an agreement, a Trust Deed will typically last for approximately 3yrs (36 months) within this period of time the Trustee liaises with your creditors and makes regular payments to them on your behalf. The amount repaid to your creditors is established with your trustee who will go through a complete income and expenditure with you.

Here are some of the benefits:

— One single monthly payment to your trustee who then makes payment on your behalf to your creditors.
— Your trust Deed will last for 36 months giving you a time in the future when you can move on from your troubles.
— Any outstanding debts at the end of your trust deed are written.

—A trust deed is a less severe solution the bankruptcy/sequestration.
— It allows you to re gain control of your personal finances.

— Your insolvency practitioner deals directly with your creditors leaving you free of the burden of contacting them directly.

— Once the Trust Deed has become approved by creditors it becomes (protected) at this point creditors are not allowed to call you or send any harassing letters.

— Under a Trust Deed this will not affect your employment or opportunities for employment within the duration of the Trust Deed.

—Unlike going through bankruptcy your details are not published in any newspapers.

Unlike bankruptcy a person within a protected trust deed can start up a company or continue to be a company director if they already held that position. Within bankruptcy neither is possible.

There are negatives behind any debt solution however and you should be aware that your credit rating will be affected. You cannot take out further credit during the period of your trust Deed however for many people this gives them time to re assess their financial position meaning they don’t get into financial difficulties in the future.