Ever heard of an IVA and thought what is it? This might be the right time to find out more. IVA stands for individual voluntary arrangement. It was started in the eighties to help businesses stay out of bankruptcy. However it was so successful, that it is now being used for people in financial difficulty. The main reason behind this is because the program is so simple.
Nobody plans on not being able to repay their debt, more often than not it is just the circumstances we find ourselves in, redundancy, divorce, ill health, stagnant wages or the ever increasing cost of living, for some the effect of any of this is overwhelming. And for those people entering an IVA will benefit them.
IVA is operated in a simple way and this has meant widespread success. The debtor monthly sets aside an affordable amount of money to repay to the IVA. This amount is based on what can reasonably be afforded once all priority debts are paid, and that you have enough money to live. It is completely voluntary. You cannot be forced to do the IVA. In some cases as much as seventy five percent of debt is written off. It is an opportunity to help people get out of debt.
Starting an IVA will reduce the amount of repayments you need to make to your creditors monthly. You will agree to a repayment plan that you can comfortably stick to. This will also stop the creditors ‘chasing’ you or from making any frightening phone calls. After sixty months it is possible to be debt free after paying twenty five percent of the total debt. In an IVA the debtor buys time and can prevent the loss of assets. Interest rates and other fees can be frozen. With an IVA any debt not paid off at the end of the term will be written off.
The IVA is a legally binding agreement and normally lasts for around five years. At the end of the term the person is considered debt free. Neither party can change their mind half way through they must finish the payment plan.
There are many choices for people in financial difficulty. An IVA is one of the best for some debtors to take advantage off. There is only one monthly bill to worry about and creditors will not be able to harass the debtors. With the IVA it is a way to get all financial problems cleared up and start over again. Your credit rating will definitely be affected but given time and effort this will improve. For a lot of people this is the best option.
Monday, 19 December 2011
Debt Solution For Scottish People
A Protected Trust Deeds, a solution to a debt problem for thousands of Scottish people, this is a very effective way to write off your debt and gain control over your finances.
Of all the people who do apply for a Protected Trust Deed many more will continue with the struggle of trying to pay for their debts, these people are either not aware off Scottish Trust Deeds or a scared to seek advice for what they believe can be an embarrassing situation.
There is no reason for anyone to be embarrassed or to feel like a failure as they are not alone in this situation. Another reason putting people off is they are worried about their credit rating and whither it will ever recover.
The truth is in a Protected Trust Deed your credit rating will be affected and this will continue for a further 3 years .The full impact is that your credit rating will be affected for 6 years if not longer.
Why Take A protected Trust Deed If my Credit Rating is affected?
When your creditors realize you are struggling with debt. They can assume you are looking at Debt management plans, or Consolidation loans. They are also aware that bankruptcy is the worst option for them.
If you miss a payment with your creditors they may serve you a default notice. This is a legal requirement of your credit agreement for a default notice to be served against you. This would stay on your file for 3-6 years and will only be marked on your credit file as ‘satisfied’ when paid.
If you went for a DMP or DAS your credit rating would still be affected as you are not sticking to the original agreement, and because both these solutions require you to repay until it is all paid back your credit rating will be affected for longer.
The best Way to Mend Your Credit Rating after a Trust Deed
After your Protected Trust Deed has ended, it is time to start re building your credit rating, this will require some hard work and a lot of determination.
To begin with always en sure that you are registered on the electoral roll. This is something lenders always check it’s their way of assessing you to be a trustworthy, creditworthy person.
When you’re Protected Trust Deed ends you will get a document called a 'Discharge Document'. This needs to be sent to the credit scoring agencies Equifax and Experian this will allow them to update your credit file and mark discharge next to your name.
Many people are able to successfully get loans and mortgages after they have been in a Protected Trust deed. This may mean taking out a credit card with a high APR but as long as you repay on time and do not miss payments this will all help your credit rating.
Taking these steps will help you get everything back on track and will restore your credit rating.
Of all the people who do apply for a Protected Trust Deed many more will continue with the struggle of trying to pay for their debts, these people are either not aware off Scottish Trust Deeds or a scared to seek advice for what they believe can be an embarrassing situation.
There is no reason for anyone to be embarrassed or to feel like a failure as they are not alone in this situation. Another reason putting people off is they are worried about their credit rating and whither it will ever recover.
The truth is in a Protected Trust Deed your credit rating will be affected and this will continue for a further 3 years .The full impact is that your credit rating will be affected for 6 years if not longer.
Why Take A protected Trust Deed If my Credit Rating is affected?
When your creditors realize you are struggling with debt. They can assume you are looking at Debt management plans, or Consolidation loans. They are also aware that bankruptcy is the worst option for them.
If you miss a payment with your creditors they may serve you a default notice. This is a legal requirement of your credit agreement for a default notice to be served against you. This would stay on your file for 3-6 years and will only be marked on your credit file as ‘satisfied’ when paid.
If you went for a DMP or DAS your credit rating would still be affected as you are not sticking to the original agreement, and because both these solutions require you to repay until it is all paid back your credit rating will be affected for longer.
The best Way to Mend Your Credit Rating after a Trust Deed
After your Protected Trust Deed has ended, it is time to start re building your credit rating, this will require some hard work and a lot of determination.
To begin with always en sure that you are registered on the electoral roll. This is something lenders always check it’s their way of assessing you to be a trustworthy, creditworthy person.
When you’re Protected Trust Deed ends you will get a document called a 'Discharge Document'. This needs to be sent to the credit scoring agencies Equifax and Experian this will allow them to update your credit file and mark discharge next to your name.
Many people are able to successfully get loans and mortgages after they have been in a Protected Trust deed. This may mean taking out a credit card with a high APR but as long as you repay on time and do not miss payments this will all help your credit rating.
Taking these steps will help you get everything back on track and will restore your credit rating.
Thursday, 15 December 2011
Does a Trust Deed affect my credit rating
Will my credit rating be affected if I enter a trust deed?
There are many elements to consider when looking into any debt solution and a trust deed or protected trust deed is no different. A common question is what impact a protected trust deed will have on a person’s credit rating?
The reality is it will have an adverse effect on your credit rating as your credit file will note the fact you have defaulted on the credit you have taken out. This mark on your credit file will last for at least 6 years of which 3 years will be served as you complete your protected trust deed.
It is however worth bearing in mind that by the time you have started to explore the best debt solution for your situation it is more often than not the case that you have notes on your credit file. This will almost be a certainly if you have missed payments to your creditors. As a result your credit score and therefore credit worthiness in the eyes of other creditors will have been detrimentally affected making future credit extremely difficult to secure.
Once you have completed your protected trust deed there, in principal is no reason for you not to attain credit again .The reality is slightly different however as a mark will be visible on your credit file for a further 3 years approximately. Your credit file is the source most creditors will visit when making a judgement on whether to approve your request therefore making obtaining credit very difficult for a a period of approximately 6 years.
Once you have got through the 6 year period obtaining credit should slowly start to become easier however you may discover the terms of the loan will be less favourable than are available to people with an excellent credit rating. It is however a start and over a further period of time your credit rating can fully recover if you work at it .It is also possible by that stage to qualify and even obtain a mortgage. Ensuring your utility bills, gas, electricity, telephone etc are paid promptly does no harm either.
You should also ensure you receive a discharge document once you have completed your protected trust deed. You should make a point of sending a copy of the discharge document to all of the credit scoring agencies and ensure your credit file is noted as discharged.
This may appear a daunting prospect to enter, however to be able to answer your phone without fear of harassment calls and to return to full night’s sleep without worry it is a relatively small price to pay .In summary you can start re building you life.
There are many elements to consider when looking into any debt solution and a trust deed or protected trust deed is no different. A common question is what impact a protected trust deed will have on a person’s credit rating?
The reality is it will have an adverse effect on your credit rating as your credit file will note the fact you have defaulted on the credit you have taken out. This mark on your credit file will last for at least 6 years of which 3 years will be served as you complete your protected trust deed.
It is however worth bearing in mind that by the time you have started to explore the best debt solution for your situation it is more often than not the case that you have notes on your credit file. This will almost be a certainly if you have missed payments to your creditors. As a result your credit score and therefore credit worthiness in the eyes of other creditors will have been detrimentally affected making future credit extremely difficult to secure.
Once you have completed your protected trust deed there, in principal is no reason for you not to attain credit again .The reality is slightly different however as a mark will be visible on your credit file for a further 3 years approximately. Your credit file is the source most creditors will visit when making a judgement on whether to approve your request therefore making obtaining credit very difficult for a a period of approximately 6 years.
Once you have got through the 6 year period obtaining credit should slowly start to become easier however you may discover the terms of the loan will be less favourable than are available to people with an excellent credit rating. It is however a start and over a further period of time your credit rating can fully recover if you work at it .It is also possible by that stage to qualify and even obtain a mortgage. Ensuring your utility bills, gas, electricity, telephone etc are paid promptly does no harm either.
You should also ensure you receive a discharge document once you have completed your protected trust deed. You should make a point of sending a copy of the discharge document to all of the credit scoring agencies and ensure your credit file is noted as discharged.
This may appear a daunting prospect to enter, however to be able to answer your phone without fear of harassment calls and to return to full night’s sleep without worry it is a relatively small price to pay .In summary you can start re building you life.
Information on the Scottish Trust Deed
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.
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.
Tuesday, 13 December 2011
Scottish Trust Deed
Ask around who has heard of a Scottish Trust Deed most people you speak to will never have heard of it. A lot of people think Trust Deeds or a Deed of trust is to do with financial investment, that is true at a certain level, but the meaning of a Scottish Trust Deed is help for people residing in Scotland who have more debt than they are able to repay. Debt has become a worldwide problem and more and more people are unable to make their monthly repayments.
Scottish Trust Deed
Basically it is a legally binding agreement between you and the creditors to pay back what you can reasonably afford over a certain period of time, this normally last for 3 years, debt left over after this time is written off. It is similar to an IVA which is used in England, Wales and Northern Ireland though the criteria are slightly different, though the good news is that it is better for the individual. A Trust Deed must go through a qualified insolvency practitioner and they arrange meetings with creditors and will do all negotiating on your behalf they will also distribute payment to your creditors as will be agreed. They will become known as the ‘Trustee’.
Who qualifies for one?
To be eligible for a Scottish Trust Deed you must owe at least £10,000, you must be able to repay approx £150 a month towards your debt. And you must reside in Scotland.
What length of time does it last for?
A Trust Deed usually lasts for 3 years. After this time any remaining debt will be written off by the creditors.
They don’t suit everyone.....
You have taken the first step to find out about one, but remember Scottish Trust Deeds are not suitable for everyone. They are meant for people having difficulty repaying their debts and who can find no other solution to repaying their debt. If you had taken out to much debt, had your hours cut or lost your job, they are all viable reasons to look into a debt solution. A Scottish Trust Deed can also protect your house or car from repossession from the bank.
Also one of the other benefits is you interest and charges will be frozen, this means the debt will not go up like for most it will be at the moment meaning more what you pays goes on bank charges rather to the actual debt.
What’s the catch
Like everything it’s not all good. You credit rating will be affected for approximately 6 years however for many they no longer want to bring out credit, and they don’t ever want to get into that position again! So, the last thing on your mind will be bringing out more credit. You will feel your reputation is ruined although this does not bother everyone. The feeling of being debt free can outweigh any of these downsides by a miles!
Scottish Trust Deed
Basically it is a legally binding agreement between you and the creditors to pay back what you can reasonably afford over a certain period of time, this normally last for 3 years, debt left over after this time is written off. It is similar to an IVA which is used in England, Wales and Northern Ireland though the criteria are slightly different, though the good news is that it is better for the individual. A Trust Deed must go through a qualified insolvency practitioner and they arrange meetings with creditors and will do all negotiating on your behalf they will also distribute payment to your creditors as will be agreed. They will become known as the ‘Trustee’.
Who qualifies for one?
To be eligible for a Scottish Trust Deed you must owe at least £10,000, you must be able to repay approx £150 a month towards your debt. And you must reside in Scotland.
What length of time does it last for?
A Trust Deed usually lasts for 3 years. After this time any remaining debt will be written off by the creditors.
They don’t suit everyone.....
You have taken the first step to find out about one, but remember Scottish Trust Deeds are not suitable for everyone. They are meant for people having difficulty repaying their debts and who can find no other solution to repaying their debt. If you had taken out to much debt, had your hours cut or lost your job, they are all viable reasons to look into a debt solution. A Scottish Trust Deed can also protect your house or car from repossession from the bank.
Also one of the other benefits is you interest and charges will be frozen, this means the debt will not go up like for most it will be at the moment meaning more what you pays goes on bank charges rather to the actual debt.
What’s the catch
Like everything it’s not all good. You credit rating will be affected for approximately 6 years however for many they no longer want to bring out credit, and they don’t ever want to get into that position again! So, the last thing on your mind will be bringing out more credit. You will feel your reputation is ruined although this does not bother everyone. The feeling of being debt free can outweigh any of these downsides by a miles!
Trust Deed in Glasgow
Information about Trust Deed in Glasgow
If you are finding your debt situation is getting on top of you with financial pressure coming from all areas including multiple credit/store cards and personal loans. It may be you are starting to look towards receiving expert advice in order to find the best solution for you.
It may be your finances have tightened with the result you are juggling payments to multiple credit card bills, the rent/mortgage and simply get to a position where you need to get debt advice.
Often there is a variety of solutions that may be appropriate one of which could be a trust deed or protected trust deed. The trust deed takes a “protected status” once your creditors have agreed to the terms of the arrangement.
A Trust Deed is similar to an individual voluntary agreement. The principal of both being over a set period of time you make monthly payments towards your debts in one payment to your trustee who then redistributes proportionately to your creditors over the period of the solution .In the case of a protected trust deed this is typically 3years with an IVA being over 5 years on average.
Trustee in a Trust Deed
This agreement is conducted on your behalf by a licensed insolvency practitioner thereafter referred to as the trustee, he works on behalf of yourself and the creditors to ensure you pay as much towards your debts as is reasonable. The trustee will also ensure that all harassment towards you from the creditors is stopped and should continued correspondence continue after you have entered a protected trust deed you should inform your trustee of this.
A protected trust deed legally prevents your lenders contacting you in relation to outstanding debts ensuring peace of mind. Another benefit behind this solution is all interest and charges are frozen ensuring your debt levels do not increase further.
In order for a trust deed to gain protected trust deed status the details are registered in the Edinburgh Gazette. If no creditors object after this period has lapsed then the trust deed becomes protected. The period given to creditors to raise an objection is five weeks.
It is important to note that whilst this arrangement is not as severe as sequestration/bankruptcy it is a legally binding agreement and as such should you default on the agreement you could most probably be made bankrupt and your credit rating would be severely impacted.
However, if you are disciplined enough to keep on top of the agreement, a trust deed can be a useful way to get out of debt problems and significantly reduce the amount that you have to pay creditors.
If you are finding your debt situation is getting on top of you with financial pressure coming from all areas including multiple credit/store cards and personal loans. It may be you are starting to look towards receiving expert advice in order to find the best solution for you.
It may be your finances have tightened with the result you are juggling payments to multiple credit card bills, the rent/mortgage and simply get to a position where you need to get debt advice.
Often there is a variety of solutions that may be appropriate one of which could be a trust deed or protected trust deed. The trust deed takes a “protected status” once your creditors have agreed to the terms of the arrangement.
A Trust Deed is similar to an individual voluntary agreement. The principal of both being over a set period of time you make monthly payments towards your debts in one payment to your trustee who then redistributes proportionately to your creditors over the period of the solution .In the case of a protected trust deed this is typically 3years with an IVA being over 5 years on average.
Trustee in a Trust Deed
This agreement is conducted on your behalf by a licensed insolvency practitioner thereafter referred to as the trustee, he works on behalf of yourself and the creditors to ensure you pay as much towards your debts as is reasonable. The trustee will also ensure that all harassment towards you from the creditors is stopped and should continued correspondence continue after you have entered a protected trust deed you should inform your trustee of this.
A protected trust deed legally prevents your lenders contacting you in relation to outstanding debts ensuring peace of mind. Another benefit behind this solution is all interest and charges are frozen ensuring your debt levels do not increase further.
In order for a trust deed to gain protected trust deed status the details are registered in the Edinburgh Gazette. If no creditors object after this period has lapsed then the trust deed becomes protected. The period given to creditors to raise an objection is five weeks.
It is important to note that whilst this arrangement is not as severe as sequestration/bankruptcy it is a legally binding agreement and as such should you default on the agreement you could most probably be made bankrupt and your credit rating would be severely impacted.
However, if you are disciplined enough to keep on top of the agreement, a trust deed can be a useful way to get out of debt problems and significantly reduce the amount that you have to pay creditors.
Monday, 12 December 2011
Avoid Bankruptcy: Protected Trust Deed
Alternative Debt Solution to Bankruptcy
A protected Trust Deed is a debt advice solution to help some people who are in financial difficulty. It is less well known than IVA (Individual Voluntary Arrangement) and is only available for people living in Scotland.
The solution runs for approximately three years whereas an IVA can run for five years or longer. Many elements of the two solutions are similar, with both sharing the same purpose which is allow you to regain control of your finances and have a date in the future when you will become debt free.
A Protected Trust Deed is less severe solution to consider than entering into full bankruptcy or sequestration. A protected trust deed is a legal arrangement which is an agreement between you and your creditors committing you to repay as much as you can afford into the solution for a period of approximately 3years (36 months). At the end of the solution the creditors must adhere to their side of the arrangement which means any outstanding sums of money due to them will be written off and you become debt free. In addition whilst you are in the solution it is illegal for creditors to continue to peruse you in any way for the debts as they are already being repaid within your protected trust deed. Any creditor doing so is breaking the law and your trustee should be informed in order for the trustee to take action on your behalf.
You must always seek advice when entering any debt solution and this includes a Protected Trust Deed. As there are some negative downsides to any debt solution you should be aware that entering a protected trust deed will have a negative impact on your credit file for approximately 6 years however in reality if you have been missing payments to your creditors it is highly probable your credit rating has already been impacted. It is also worthwhile getting a copy of your credit file before you enter into a debt solution in order to make sure all creditors are included within that solution.
Another advantage of entering a Protected Trust Deed is that all interest and charges are frozen ensuring your debt levels do not continue to rise further. Once you have completed your protected trust deed you will be free of debt and ready move your life on without burden or worry.
A protected Trust Deed is a debt advice solution to help some people who are in financial difficulty. It is less well known than IVA (Individual Voluntary Arrangement) and is only available for people living in Scotland.
The solution runs for approximately three years whereas an IVA can run for five years or longer. Many elements of the two solutions are similar, with both sharing the same purpose which is allow you to regain control of your finances and have a date in the future when you will become debt free.
A Protected Trust Deed is less severe solution to consider than entering into full bankruptcy or sequestration. A protected trust deed is a legal arrangement which is an agreement between you and your creditors committing you to repay as much as you can afford into the solution for a period of approximately 3years (36 months). At the end of the solution the creditors must adhere to their side of the arrangement which means any outstanding sums of money due to them will be written off and you become debt free. In addition whilst you are in the solution it is illegal for creditors to continue to peruse you in any way for the debts as they are already being repaid within your protected trust deed. Any creditor doing so is breaking the law and your trustee should be informed in order for the trustee to take action on your behalf.
You must always seek advice when entering any debt solution and this includes a Protected Trust Deed. As there are some negative downsides to any debt solution you should be aware that entering a protected trust deed will have a negative impact on your credit file for approximately 6 years however in reality if you have been missing payments to your creditors it is highly probable your credit rating has already been impacted. It is also worthwhile getting a copy of your credit file before you enter into a debt solution in order to make sure all creditors are included within that solution.
Another advantage of entering a Protected Trust Deed is that all interest and charges are frozen ensuring your debt levels do not continue to rise further. Once you have completed your protected trust deed you will be free of debt and ready move your life on without burden or worry.
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. .
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. .
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.
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.
Trust Deed Scotland; Glasgow, Edinburgh, Falkirk, Aberdeen...
prospect ,it is important to seek professional help and advice once you decide to explore which solution is best for your circumstances. One solution that may be suitable for you is called a Trust Deed. This option is available to people living in Scotland.
A Trust Deed merges your debts into one place (very much as an IVA does in England Wales and Northern Ireland) and thereafter one monthly sum of money is paid towards the debt. Once you decide to enter a trust deed you will be appointed a trustee who will carry out a complete income and expenditure in order to establish an affordable monthly payment with yourself.
This should ensure you can afford to make the monthly repayment and still have sufficient left to lead a basic lifestyle over the term of the trust deed.
After a period of approximately 3ys (thirty six months) any outstanding debts are written off leaving you free of debt or obligation.
A trust deed is often much preferred to bankruptcy or sequestration as it does not have the same constraints for instance you can still be or become a company director whilst in a trust deed .Your name does not appear in any newspapers with a trust deed as it does when entering bankruptcy.
It is important to note however that once you have entered a trust deed you should not apply for further credit for the duration of the solution. Once you have entered a trust deed and it has been approved by your creditors the case then becomes (protected).This means all your creditors must agree to the terms of the trust deed and accept that any outstanding sums due to them after the duration of the solution will be written off.
Trust deeds are a better solution than bankruptcy if you have any assets; this is due to the fact that in a bankruptcy solution you would most likely be forced to sell them in order to pay them towards your debts. A trust deed will also allow you to be a company director should you choose.
You have two choices when it comes to trust deeds in Scotland. These are between a protected and unprotected agreement.
Once you have entered a trust deed your creditors are not permitted to contact you in relation to the debt .They must liaise only with your trustee.
Trust Deed in Scotland
Trust Deed's are available to people over the age of 18, residing in Scotland for the last 6 months and who meet the criteria. You can have Trust Deeds throughout Scotland including Glasgow, Edinburgh, Falkirk and Aberdeen.
A Trust Deed merges your debts into one place (very much as an IVA does in England Wales and Northern Ireland) and thereafter one monthly sum of money is paid towards the debt. Once you decide to enter a trust deed you will be appointed a trustee who will carry out a complete income and expenditure in order to establish an affordable monthly payment with yourself.
This should ensure you can afford to make the monthly repayment and still have sufficient left to lead a basic lifestyle over the term of the trust deed.
After a period of approximately 3ys (thirty six months) any outstanding debts are written off leaving you free of debt or obligation.
A trust deed is often much preferred to bankruptcy or sequestration as it does not have the same constraints for instance you can still be or become a company director whilst in a trust deed .Your name does not appear in any newspapers with a trust deed as it does when entering bankruptcy.
It is important to note however that once you have entered a trust deed you should not apply for further credit for the duration of the solution. Once you have entered a trust deed and it has been approved by your creditors the case then becomes (protected).This means all your creditors must agree to the terms of the trust deed and accept that any outstanding sums due to them after the duration of the solution will be written off.
Trust deeds are a better solution than bankruptcy if you have any assets; this is due to the fact that in a bankruptcy solution you would most likely be forced to sell them in order to pay them towards your debts. A trust deed will also allow you to be a company director should you choose.
You have two choices when it comes to trust deeds in Scotland. These are between a protected and unprotected agreement.
Once you have entered a trust deed your creditors are not permitted to contact you in relation to the debt .They must liaise only with your trustee.
Trust Deed in Scotland
Trust Deed's are available to people over the age of 18, residing in Scotland for the last 6 months and who meet the criteria. You can have Trust Deeds throughout Scotland including Glasgow, Edinburgh, Falkirk and Aberdeen.
Protected Trust Deed Help
Protected Trust Deed In Scotland
A Protected Trust Deed gives a person living in Scotland that is struggling with the burden of unmanageable debts, the opportunity to come to an affordable agreement with their unsecured creditors.
A Scottish Trust Deed, which usually lasts for 3 years, is an alternative to bankruptcy, or as it is called in Scotland sequestration.
After the Protected Trust Deed has been approved by the required formula of creditors, it becomes a legally binding agreement that all creditors must adhere to, legally under the terms of this agreement, creditors must put a freeze on all interest and charges including late payment fees or other similar penalties.
Due to a Protected Trust Deed being a legally binding agreement, it must be administered by a licensed Insolvency Practitioner. The insolvency practitioner’s main role and duty is to act as the Trustee for the duration of the Protected Trust Deed.
One of the insolvency practitioner’s roles is to liaise between the person in the trust deed and their creditors. Another part of the insolvency practitioner’s role is to ensure the person in the trust deed pays as much as he can afford into the trust deed for its entire duration thus ensuring as much money as possible is paid back to creditors , they are also responsible for ensuring creditors stop all harassment of the person in the trust deed.
Payments into the trust deed are paid on a monthly basis and are given directly to the Trustee. They are set at an affordable level, based monies left over after reasonable living allowances for the applicant have been deducted. A duty of the Trustee's is to distribute the money to your creditors throughout the arrangement,. The trustee has to ensure fair and proportionate distribution back to each of the creditors.
The Trustee can amend the Trust Deed payments at any time, if the person in the trust deeds personal /financial position either deteriorate or improve through the duration of the Trust Deed. The Trustees job is to monitor the financial position throughout the arrangement ensuring his/her financial input remains fair and reasonable.
Trust Deed Scotland
Once the Trust Deed has been completed (Approx 36 months) the applicant is legally free of debt. If there is any sums of money outstanding at the end of the term of the trust deed this money is written off by the creditors.
Before you consider entering a trust deed you must have at least £10,000 in unsecured debts, in addition the debt should be owed to at least 3 different creditors.
For a trust deed to be considered for approval by creditors you must be able to repay at least 10% of the debt. This percentage is after the Trustee has deducted his fees for administrating your Protected Trust Deed.
A Protected Trust Deed gives a person living in Scotland that is struggling with the burden of unmanageable debts, the opportunity to come to an affordable agreement with their unsecured creditors.
A Scottish Trust Deed, which usually lasts for 3 years, is an alternative to bankruptcy, or as it is called in Scotland sequestration.
After the Protected Trust Deed has been approved by the required formula of creditors, it becomes a legally binding agreement that all creditors must adhere to, legally under the terms of this agreement, creditors must put a freeze on all interest and charges including late payment fees or other similar penalties.
Due to a Protected Trust Deed being a legally binding agreement, it must be administered by a licensed Insolvency Practitioner. The insolvency practitioner’s main role and duty is to act as the Trustee for the duration of the Protected Trust Deed.
One of the insolvency practitioner’s roles is to liaise between the person in the trust deed and their creditors. Another part of the insolvency practitioner’s role is to ensure the person in the trust deed pays as much as he can afford into the trust deed for its entire duration thus ensuring as much money as possible is paid back to creditors , they are also responsible for ensuring creditors stop all harassment of the person in the trust deed.
Payments into the trust deed are paid on a monthly basis and are given directly to the Trustee. They are set at an affordable level, based monies left over after reasonable living allowances for the applicant have been deducted. A duty of the Trustee's is to distribute the money to your creditors throughout the arrangement,. The trustee has to ensure fair and proportionate distribution back to each of the creditors.
The Trustee can amend the Trust Deed payments at any time, if the person in the trust deeds personal /financial position either deteriorate or improve through the duration of the Trust Deed. The Trustees job is to monitor the financial position throughout the arrangement ensuring his/her financial input remains fair and reasonable.
Trust Deed Scotland
Once the Trust Deed has been completed (Approx 36 months) the applicant is legally free of debt. If there is any sums of money outstanding at the end of the term of the trust deed this money is written off by the creditors.
Before you consider entering a trust deed you must have at least £10,000 in unsecured debts, in addition the debt should be owed to at least 3 different creditors.
For a trust deed to be considered for approval by creditors you must be able to repay at least 10% of the debt. This percentage is after the Trustee has deducted his fees for administrating your Protected Trust Deed.
Friday, 9 December 2011
Trust Deeds: Benefits and Who Qualifies?
Unless you have experienced serious debt problems or have known someone who has you probably don’t know what a Trust Deed is . Many people believe is to do with the property market (Deed of Trust), however a Scottish Trust Deed is a debt solution available to residents of Scotland to help them regain control of their finances which for many varied reasons have become out of control leaving the person with insufficient funds to meet their financial obligations
So What is a Scottish Trust Deed?
A Scottish Trust Deed is a legally binding agreement entered into with yourself and your creditors in order to repay an agreed affordable sum of money towards your debts over a set period, Typically this is usually 36 months (3 years), after this period any outstanding debt is written off. This is the Scottish equivalent of an IVA (Individual Voluntary Arrangement). However the criteria is different between the two with a Scottish trust Deed being the more favorable Being a legally binding agreement, a Trust Deed must be conducted by a qualified insolvency practitioner .They will arrange meetings with your creditors on your behalf, and distribute payments accordingly. The insolvency practitioner is thereafter known as the 'Trustee' for your case.
Do I qualify for a Trust Deed?
A Scottish Trust Deed will not be suitable for everyone to qualify you must owe a minimum of £10,000, be in employment, be able to contribute at least £150 towards your debts. You must also reside in Scotland.
How long does it last for? Typically a Scottish Trust Deed will last for 36 months (3 years). Once you have completed your trust deed any remaining debt written off by your creditors.
Trust Deeds are not suitable for everyone
Whilst looking into all solutions available it is important to not a trust deed is not suitable for everyone. They are typically designed for people who are in difficulty repaying their debts and cannot find an alternative solution to their debt problems. You may have over extended yourself taking out too much credit, suffered a salary cut or experienced redundancy, all of which are justifiable reasons to explore this particular Debt Solution. It may also be able to protect your assets for example your car or your home from the risk of repossession by the banks.
An added advantage behind a trust deed is that interest and charges are frozen. This means the debt will not accumulate and once the trust deed is “protected “ you will be free from the harassing phone calls and the endless stream of threatening letters will be a thing of the past.
What is the downside of entering a Trust Deed?
There are downsides to entering a trust deed . Your credit file will be marked thus warning potential creditors of your previous conduct .This will typically stay on your file for approximately 6 years before you have a “clean slate” .Due to your credit file having defaults against it you would also have serious difficulty remortgaging etc through this period.
So What is a Scottish Trust Deed?
A Scottish Trust Deed is a legally binding agreement entered into with yourself and your creditors in order to repay an agreed affordable sum of money towards your debts over a set period, Typically this is usually 36 months (3 years), after this period any outstanding debt is written off. This is the Scottish equivalent of an IVA (Individual Voluntary Arrangement). However the criteria is different between the two with a Scottish trust Deed being the more favorable Being a legally binding agreement, a Trust Deed must be conducted by a qualified insolvency practitioner .They will arrange meetings with your creditors on your behalf, and distribute payments accordingly. The insolvency practitioner is thereafter known as the 'Trustee' for your case.
Do I qualify for a Trust Deed?
A Scottish Trust Deed will not be suitable for everyone to qualify you must owe a minimum of £10,000, be in employment, be able to contribute at least £150 towards your debts. You must also reside in Scotland.
How long does it last for? Typically a Scottish Trust Deed will last for 36 months (3 years). Once you have completed your trust deed any remaining debt written off by your creditors.
Trust Deeds are not suitable for everyone
Whilst looking into all solutions available it is important to not a trust deed is not suitable for everyone. They are typically designed for people who are in difficulty repaying their debts and cannot find an alternative solution to their debt problems. You may have over extended yourself taking out too much credit, suffered a salary cut or experienced redundancy, all of which are justifiable reasons to explore this particular Debt Solution. It may also be able to protect your assets for example your car or your home from the risk of repossession by the banks.
An added advantage behind a trust deed is that interest and charges are frozen. This means the debt will not accumulate and once the trust deed is “protected “ you will be free from the harassing phone calls and the endless stream of threatening letters will be a thing of the past.
What is the downside of entering a Trust Deed?
There are downsides to entering a trust deed . Your credit file will be marked thus warning potential creditors of your previous conduct .This will typically stay on your file for approximately 6 years before you have a “clean slate” .Due to your credit file having defaults against it you would also have serious difficulty remortgaging etc through this period.
Best Trust Deed Scotland
Trust Deeds for People in Scotland
There is not many feelings worse than having debt you cannot afford to repay. While sometimes they happen because of bad decisions, sometimes it is just because of bad luck. Either way, you need to get it sorted out and stop the pressure of being scared to answer the telephone or the door. If you are in Scotland you are in luck.
People in Scotland are more fortunate when it comes to debt because the government has been proactive helping people that are debt laden. This has meant that in Scotland the amount of debt is lower than the rest of the UK. Also the Scottish legal system is independent from the UK and the Scottish people have better options.
There are a variety of options you can take to pay of your creditors. Every solution varies from person to person depending on your financial situation however one of the best as long as you reach the criteria is a Protected Trust Deed.this is not the same as the LILA sequestration for people with low income low asset.It is an easier option and stops sequestration almost 9500 Scots go for this option each year.
Best IVA
England, Wales and Northern Ireland have something similar this is called an IVA, Individual Voluntary Arrangement though the Protected Trust Deed is a far better option and to understand that you need to understand about the Protected Trust deed.
Protected Trust Deeds are a good way to stay solvent when all other options are not suitable. When you have tried to pay your debt but just cant this must be unsecured debt. Your mortgage is not part of this. It is mainly for store cards, credit cards anything not secured. What they will do is put all the unsecured debt together.
Once all these debts are calculated the future trustee of your Protected Deed Trust will negotiate an arrangement with the creditors that they will be happy with and they will agree to write the rest of the debt off. It is not ideal for the creditors but they realise that a little is better than nothing.
Once the Protected Trust deed is put in place it will take six weeks to begin then you will receive only one monthly bill. The letters and phone calls will stop as this is law and the payments will only last for three years. It is five years with an IVA anywhere else in the UK.
The Protect Trust Deed does have an effect on your credit rating, although it will be paid in three years it will effect you credit rating for six years making it very hard for you to get credit. However it is still better than not paying anything back to your creditors.
There is not many feelings worse than having debt you cannot afford to repay. While sometimes they happen because of bad decisions, sometimes it is just because of bad luck. Either way, you need to get it sorted out and stop the pressure of being scared to answer the telephone or the door. If you are in Scotland you are in luck.
People in Scotland are more fortunate when it comes to debt because the government has been proactive helping people that are debt laden. This has meant that in Scotland the amount of debt is lower than the rest of the UK. Also the Scottish legal system is independent from the UK and the Scottish people have better options.
There are a variety of options you can take to pay of your creditors. Every solution varies from person to person depending on your financial situation however one of the best as long as you reach the criteria is a Protected Trust Deed.this is not the same as the LILA sequestration for people with low income low asset.It is an easier option and stops sequestration almost 9500 Scots go for this option each year.
Best IVA
England, Wales and Northern Ireland have something similar this is called an IVA, Individual Voluntary Arrangement though the Protected Trust Deed is a far better option and to understand that you need to understand about the Protected Trust deed.
Protected Trust Deeds are a good way to stay solvent when all other options are not suitable. When you have tried to pay your debt but just cant this must be unsecured debt. Your mortgage is not part of this. It is mainly for store cards, credit cards anything not secured. What they will do is put all the unsecured debt together.
Once all these debts are calculated the future trustee of your Protected Deed Trust will negotiate an arrangement with the creditors that they will be happy with and they will agree to write the rest of the debt off. It is not ideal for the creditors but they realise that a little is better than nothing.
Once the Protected Trust deed is put in place it will take six weeks to begin then you will receive only one monthly bill. The letters and phone calls will stop as this is law and the payments will only last for three years. It is five years with an IVA anywhere else in the UK.
The Protect Trust Deed does have an effect on your credit rating, although it will be paid in three years it will effect you credit rating for six years making it very hard for you to get credit. However it is still better than not paying anything back to your creditors.
Scottish Trust Deeds
There is a number of solutions for people living in Scotland who have financial problems they are struggling with. One of the options available to people in Scotland is called a Scottish Trust Deed.
So what is a Scottish Trust Deed?
A Trust Deed is a legally binding arrangement for Scottish citizens giving them the opportunity to consolidate their loans to help clear their unsecured debts. Using this solution debts are restructured and paid back at a rate you can afford over a period of time. Typically this solution will last for a period of 36 months, at the end of the solution the creditors will agree to write off outstanding and unpaid debt. Someone entering a trust deed will make one regular monthly payment to their appointed trustee .Your payment is then redistributed (via your trustee) to your creditors on a pro rata basis. The exact amount you will pay into your protected trust deed will depend on your financial position; this is ascertained once a full income and expenditure has been conducted.
So what is the benefit of a Trust Deed?
For people with unmanageable debt problems it offers a number of advantages. Due to the debts being consolidated into an affordable monthly payment the debtor will no longer struggle to meet their monthly obligations to their creditors. As the arrangement has a fixed time period once the trust deed has been approved you will know exactly when you are free from the burden of debt. Once the deed comes into effect (approximately 6weeks) all interest and charges relating to the debt are frozen. Creditors thereafter will not be able to take further legal action in relation to the debt. Once the trust deed has been completed any outstanding debt is written off.
How do I go about entering a Trust Deed ?
As a Scottish Trust Deed is a legally binding arrangement it must be administered and managed by an Insolvency Practitioner licensed to operate in Scotland. It is the Insolvency Practitioners responsibility to collate all relevant information regarding your income, expenditure and a full list of debtors. Once the insolvency practitioner has accrued this information they will put a proposal to your creditors for approval. Under Scottish law the proposal will be automatically accepted unless a majority of creditors object in writing within five weeks. Once the proposal is accepted it becomes known as a Protected Trust Deed.
Will a Scottish Trust Deed be suitable for me?
There is certain criteria you need to meet in order to qualify for a Trust Deed and as a result they are not suitable for everyone. As a general rule you will need to have debts of at least £8000 with the debt owed to 3 or more separate creditors. You will also need to be in employment with sufficient disposable income to be able to make a monthly contribution to your debts.
IVA Advice provides information on Scottish Trust Deeds, Individual Voluntary Arrangements and alternative debt solutions. Our debt advisors have helped many people throughout the UK to solve their financial problems.
So what is a Scottish Trust Deed?
A Trust Deed is a legally binding arrangement for Scottish citizens giving them the opportunity to consolidate their loans to help clear their unsecured debts. Using this solution debts are restructured and paid back at a rate you can afford over a period of time. Typically this solution will last for a period of 36 months, at the end of the solution the creditors will agree to write off outstanding and unpaid debt. Someone entering a trust deed will make one regular monthly payment to their appointed trustee .Your payment is then redistributed (via your trustee) to your creditors on a pro rata basis. The exact amount you will pay into your protected trust deed will depend on your financial position; this is ascertained once a full income and expenditure has been conducted.
So what is the benefit of a Trust Deed?
For people with unmanageable debt problems it offers a number of advantages. Due to the debts being consolidated into an affordable monthly payment the debtor will no longer struggle to meet their monthly obligations to their creditors. As the arrangement has a fixed time period once the trust deed has been approved you will know exactly when you are free from the burden of debt. Once the deed comes into effect (approximately 6weeks) all interest and charges relating to the debt are frozen. Creditors thereafter will not be able to take further legal action in relation to the debt. Once the trust deed has been completed any outstanding debt is written off.
How do I go about entering a Trust Deed ?
As a Scottish Trust Deed is a legally binding arrangement it must be administered and managed by an Insolvency Practitioner licensed to operate in Scotland. It is the Insolvency Practitioners responsibility to collate all relevant information regarding your income, expenditure and a full list of debtors. Once the insolvency practitioner has accrued this information they will put a proposal to your creditors for approval. Under Scottish law the proposal will be automatically accepted unless a majority of creditors object in writing within five weeks. Once the proposal is accepted it becomes known as a Protected Trust Deed.
Will a Scottish Trust Deed be suitable for me?
There is certain criteria you need to meet in order to qualify for a Trust Deed and as a result they are not suitable for everyone. As a general rule you will need to have debts of at least £8000 with the debt owed to 3 or more separate creditors. You will also need to be in employment with sufficient disposable income to be able to make a monthly contribution to your debts.
IVA Advice provides information on Scottish Trust Deeds, Individual Voluntary Arrangements and alternative debt solutions. Our debt advisors have helped many people throughout the UK to solve their financial problems.
Advice On Trust Deeds Scotland
Trust Deed Debt Help
So your Trust deed is over and now you have to get your life back in order. I had a Trust Deed that finished in July 2009, what a wonderful feeling to be completely debt free. I knew I would have to begin at the start to repair the bad credit rating as I knew that one day I wanted to own my own property. So after looking into it I began to repair the damage that I had done to myself financially.
The first thing I had to do was make sure the information held on my credit file was correct. There is one place to go for a free credit check this is Experian they offer one month free but you must remember to cancel after the month so they don’t charge you. I became a member with Experian online so I could get a look instantly at my report, however I stress again you must remember to cancel.
Other companies may have different information on you depending on which company your creditors reported to.
Scottish Debt Advice
First thing you need to do is confirm that all creditors that were in your Trust Deed have the correct default date on file, this should be the date you signed the Trust Deed. It is vital that this date is correct so that your defaults fall away at the correct time. To get this fixed you will need to write to each creditor confirming the start date of your Trust Deed and enclose a copy of the Trust Deed.
Next you need to receive for a discharge letter from your Trustee, this will be automatic but can take a few weeks to arrive, and the trustee will issue a letter confirming that all your creditors have been paid off. If nothing arrives don’t hesitate to contact your trustee to find out what the situation is.
Once the trustee has sent your discharge letter all creditors should update your credit file to say payment is settled os satisfied. Some creditors will do this automatically other you will have to get in touch with to make them do this.
Once you receive your letter check your credit file to make sure the creditors have amended you file tow that it has been settled. If it has not you will need to write to the creditors enclosing a copy of your discharge letter, by law your creditors are required to do this and that the information given is correct. There are some template letters available on the internet; I have added a copy of the letter I used. I used the same letter to get my default date amended and to get my file marked as settled.
The creditors will take up to six weeks to update your file, However if they have not done it in that time you can phone and chase them up reminding them that they are required to do this by law. Once I sent my creditors letters they all updated my file and I did not need to contact them again.
Some creditors may have sold your loan onto someone else, if the new creditor does not update your file or respond to your letter contact the original creditor as you signed the agreement with them and they still have a responsibility for making sure the correct information is on your report.
Trust Deed Scotland Debt Help
You will get the contact details for your creditors on your credit report however you will need your account number. If you can not find your account number call your creditor they will be able to give you a reference number at least.
From the date you signed your trust deed all the defaults will stay on your file for six years.
Once your report is accurate it's time to think about rebuilding your credit. There are some things you can do, first upgraded bank account from a basic current account to a current account with a debit card they would not allow a credit card, I also wanted a Vanquis credit card, the APR is high but I just wanted to rebuild my rating, use this only once a month and always clear the balance never use it if you cannot afford to clear it, that way you do not pay interest and get a good report every month in your credit file. I also got a Litttlewoods account and adopted the same philosophy remember to always pay off in full.
Also don’t forget credit searches leave prints on your file so try to keep your applications to a minimum and don’t apply for anything you don’t think you’ll get. It is also worth applying for a small overdraft to build a good relationship with your bank.
So your Trust deed is over and now you have to get your life back in order. I had a Trust Deed that finished in July 2009, what a wonderful feeling to be completely debt free. I knew I would have to begin at the start to repair the bad credit rating as I knew that one day I wanted to own my own property. So after looking into it I began to repair the damage that I had done to myself financially.
The first thing I had to do was make sure the information held on my credit file was correct. There is one place to go for a free credit check this is Experian they offer one month free but you must remember to cancel after the month so they don’t charge you. I became a member with Experian online so I could get a look instantly at my report, however I stress again you must remember to cancel.
Other companies may have different information on you depending on which company your creditors reported to.
Scottish Debt Advice
First thing you need to do is confirm that all creditors that were in your Trust Deed have the correct default date on file, this should be the date you signed the Trust Deed. It is vital that this date is correct so that your defaults fall away at the correct time. To get this fixed you will need to write to each creditor confirming the start date of your Trust Deed and enclose a copy of the Trust Deed.
Next you need to receive for a discharge letter from your Trustee, this will be automatic but can take a few weeks to arrive, and the trustee will issue a letter confirming that all your creditors have been paid off. If nothing arrives don’t hesitate to contact your trustee to find out what the situation is.
Once the trustee has sent your discharge letter all creditors should update your credit file to say payment is settled os satisfied. Some creditors will do this automatically other you will have to get in touch with to make them do this.
Once you receive your letter check your credit file to make sure the creditors have amended you file tow that it has been settled. If it has not you will need to write to the creditors enclosing a copy of your discharge letter, by law your creditors are required to do this and that the information given is correct. There are some template letters available on the internet; I have added a copy of the letter I used. I used the same letter to get my default date amended and to get my file marked as settled.
The creditors will take up to six weeks to update your file, However if they have not done it in that time you can phone and chase them up reminding them that they are required to do this by law. Once I sent my creditors letters they all updated my file and I did not need to contact them again.
Some creditors may have sold your loan onto someone else, if the new creditor does not update your file or respond to your letter contact the original creditor as you signed the agreement with them and they still have a responsibility for making sure the correct information is on your report.
Trust Deed Scotland Debt Help
You will get the contact details for your creditors on your credit report however you will need your account number. If you can not find your account number call your creditor they will be able to give you a reference number at least.
From the date you signed your trust deed all the defaults will stay on your file for six years.
Once your report is accurate it's time to think about rebuilding your credit. There are some things you can do, first upgraded bank account from a basic current account to a current account with a debit card they would not allow a credit card, I also wanted a Vanquis credit card, the APR is high but I just wanted to rebuild my rating, use this only once a month and always clear the balance never use it if you cannot afford to clear it, that way you do not pay interest and get a good report every month in your credit file. I also got a Litttlewoods account and adopted the same philosophy remember to always pay off in full.
Also don’t forget credit searches leave prints on your file so try to keep your applications to a minimum and don’t apply for anything you don’t think you’ll get. It is also worth applying for a small overdraft to build a good relationship with your bank.
Trust Deed Support Help
Trust Deed in Scotland
Anyone who has overstretched the amount of credit they have taken out will understand the stress of trying to meet their payment obligations. This is sometimes due to the result of poor decision making, however often it is just bad luck or unfortunate timing. Whatever the reason or cause it is important to find a way of re taking control and put an end to the endless phone calls chasing you for payment. If you happen to live in Scotland there is a solution which may help you do that.
Fortunately for people living in Scotland they are more fortunate than those living in other areas of the UK when it comes to debt as the government has been proactive about supporting people with unmanageable levels of debt. As a result the levels of debt in Scotland are lower than in other areas within the UK. In addition, the Scottish legal system has different laws to the rest of the U.K., they have more favorable options.
There are different solutions you can explore to restructure your finances to allow you to pay off your bills. The best solution varies dependent on your particular situation however one of the best options may be a Protected Trust Deed. This solution differs from a LILA route which is designed for people with low income and low assets. A protected trust deed is the better option as it prevents sequestration with almost 9,000 Scots a year using this option to resolve their financial difficulties.
IVA Debt Help
England, Wales, and Northern Ireland have a different solution which is similar, it is called an IVA, (Individual Voluntary Arrangement) .A Protected Trust Deed is however a better solution, to realize exactly why you first need to understand the criteria behind a Protected Trust Deed.
Protected Trust Deeds are an excellent route to remaining solvent when other options have been exhausted. You have attempted to honor your unsecured debt obligations however this is no longer going to be possible for a variety of reasons. All unsecured debts are grouped together; unsecured debts are typically credit cards, store cards, personal loans, overdraughts etc.
After these debts are compiled, you need to choose a trustee for your Protected Deed Trust .There role will be to liaise with the creditors and come to an acceptable arrangement on your behalf which they find acceptable leaving them to write off the outstanding debt. Whilst .lenders are never happy to write off debt they equally understand it makes sense to come to an arrangement which will see them received at least a percentage of their money back.
After the arrangement is in position , on average this takes about six weeks, you will then make one monthly contribution to your trustee . Once your protected trust deed is in place it becomes illegal for you to receive phone calls or letters from your creditors as they have agreed to your debt solution .Payments will be made into your protected trust deed for 3 years which is 2 years shorter than the IVA solution used in England, Wales and Northern Ireland .
A Protected Trust Deed will leave a mark on your credit file which will remain for a total of 6 years , this can result in difficulties obtaining credit after you have completed your protected trust deed however, after 6 years you should find accessing credit much simpler. To regain control of your finances and stop the sleepless nights its likely to be a small price to pay.
Anyone who has overstretched the amount of credit they have taken out will understand the stress of trying to meet their payment obligations. This is sometimes due to the result of poor decision making, however often it is just bad luck or unfortunate timing. Whatever the reason or cause it is important to find a way of re taking control and put an end to the endless phone calls chasing you for payment. If you happen to live in Scotland there is a solution which may help you do that.
Fortunately for people living in Scotland they are more fortunate than those living in other areas of the UK when it comes to debt as the government has been proactive about supporting people with unmanageable levels of debt. As a result the levels of debt in Scotland are lower than in other areas within the UK. In addition, the Scottish legal system has different laws to the rest of the U.K., they have more favorable options.
There are different solutions you can explore to restructure your finances to allow you to pay off your bills. The best solution varies dependent on your particular situation however one of the best options may be a Protected Trust Deed. This solution differs from a LILA route which is designed for people with low income and low assets. A protected trust deed is the better option as it prevents sequestration with almost 9,000 Scots a year using this option to resolve their financial difficulties.
IVA Debt Help
England, Wales, and Northern Ireland have a different solution which is similar, it is called an IVA, (Individual Voluntary Arrangement) .A Protected Trust Deed is however a better solution, to realize exactly why you first need to understand the criteria behind a Protected Trust Deed.
Protected Trust Deeds are an excellent route to remaining solvent when other options have been exhausted. You have attempted to honor your unsecured debt obligations however this is no longer going to be possible for a variety of reasons. All unsecured debts are grouped together; unsecured debts are typically credit cards, store cards, personal loans, overdraughts etc.
After these debts are compiled, you need to choose a trustee for your Protected Deed Trust .There role will be to liaise with the creditors and come to an acceptable arrangement on your behalf which they find acceptable leaving them to write off the outstanding debt. Whilst .lenders are never happy to write off debt they equally understand it makes sense to come to an arrangement which will see them received at least a percentage of their money back.
After the arrangement is in position , on average this takes about six weeks, you will then make one monthly contribution to your trustee . Once your protected trust deed is in place it becomes illegal for you to receive phone calls or letters from your creditors as they have agreed to your debt solution .Payments will be made into your protected trust deed for 3 years which is 2 years shorter than the IVA solution used in England, Wales and Northern Ireland .
A Protected Trust Deed will leave a mark on your credit file which will remain for a total of 6 years , this can result in difficulties obtaining credit after you have completed your protected trust deed however, after 6 years you should find accessing credit much simpler. To regain control of your finances and stop the sleepless nights its likely to be a small price to pay.
Trust Deed Scotland Debt Help
There are lots of debt help programs available for consumers struggling with money. From money manager to debt advice and debt settlement to debt consolidation, some form of help exists for all types of problems.
Finding the best debt help can become frightening. This article offers an view of the various debt reduction solutions, along with ways to find further information.
Budgeting is the best way it will cost least and have the best results. This debt reduction plan allows debtors to manage a financial plan based on their income and expenses. People who spend more than they have coming in can use money manager tool to differentiate between necessary and unnecessary expense and should stop all unnecessary expense.
Perhaps the largest expenditure is the daily expenses most people don't even realize they are spending. The morning paper enroute to the train station. ; the last minute lunch; snacks from the works machine; dinner at your favourite restaurant; weekend trip to the cinema.
These expenses have a large impact on your budget. If you're having problems making ends meet, take time to look where your money is actually going. Chances are you will not even realise. The plan is to spend less money than you earn and to be able to pay your creditors money manager tool is there to make this possible.
For those who are unable to do this we recommend you call Debt Suppport Trust a charity that has been set up to give people free impartial advice over the telephone they will offer you the best advice to suit your particular situation.
Debt Support Trust helps clients through the whole process and will give advice on how to budget. Debt advisors will help you find the best solution and advise you well on how to get out of debt. Debt Support Trust will advice you how to negotiate with creditors to reduce the interest rate and freeze charges they will email you a letter to help with this process.
If you are unable to repay your debt and considering bankruptcy, Debt Support Trust will look at your income and expenditure and consider any other options if it is the only option they will advise you how best to do it.
Always use a charity when ever you require debt advice this is more than ever a time when you do not want to cause any additional expense. .
Debt Support Trust helps you negotiations with creditors to reduce outstanding balances. If they recommend a Debt management plan they will pass you on to free of charge company who are well connected within the credit industry and can sometimes lower outstanding balances by as much as 60-percent.
Fee charging providers generally charge a start-up fee, along with a monthly maintenance fee. These fees can be quite costly, so it is a good idea to sit down with a pencil and paper and calculate the true savings.
Debt management plans will have a negative impact on your credit report, but is not as bad as bankruptcy or repossession. Should you decide to go into a debt management plan, be certain to conduct extensive research and make certain you are dealing with a reputable and licensed organization?
Debt management plans would look at any equity you may have in your property and would recommend that you take out a loan against your property to pay off your debt.
However with the current mortgage crisis, getting a home equity loans has literally become an nearly impossible task. Also, it can be very dangerous to use your home to pay off debts. Debt management plans can place your home at risk if you are unable to make your home equity loan payments.
Finding the best debt help can become frightening. This article offers an view of the various debt reduction solutions, along with ways to find further information.
Budgeting is the best way it will cost least and have the best results. This debt reduction plan allows debtors to manage a financial plan based on their income and expenses. People who spend more than they have coming in can use money manager tool to differentiate between necessary and unnecessary expense and should stop all unnecessary expense.
Perhaps the largest expenditure is the daily expenses most people don't even realize they are spending. The morning paper enroute to the train station. ; the last minute lunch; snacks from the works machine; dinner at your favourite restaurant; weekend trip to the cinema.
These expenses have a large impact on your budget. If you're having problems making ends meet, take time to look where your money is actually going. Chances are you will not even realise. The plan is to spend less money than you earn and to be able to pay your creditors money manager tool is there to make this possible.
For those who are unable to do this we recommend you call Debt Suppport Trust a charity that has been set up to give people free impartial advice over the telephone they will offer you the best advice to suit your particular situation.
Debt Support Trust helps clients through the whole process and will give advice on how to budget. Debt advisors will help you find the best solution and advise you well on how to get out of debt. Debt Support Trust will advice you how to negotiate with creditors to reduce the interest rate and freeze charges they will email you a letter to help with this process.
If you are unable to repay your debt and considering bankruptcy, Debt Support Trust will look at your income and expenditure and consider any other options if it is the only option they will advise you how best to do it.
Always use a charity when ever you require debt advice this is more than ever a time when you do not want to cause any additional expense. .
Debt Support Trust helps you negotiations with creditors to reduce outstanding balances. If they recommend a Debt management plan they will pass you on to free of charge company who are well connected within the credit industry and can sometimes lower outstanding balances by as much as 60-percent.
Fee charging providers generally charge a start-up fee, along with a monthly maintenance fee. These fees can be quite costly, so it is a good idea to sit down with a pencil and paper and calculate the true savings.
Debt management plans will have a negative impact on your credit report, but is not as bad as bankruptcy or repossession. Should you decide to go into a debt management plan, be certain to conduct extensive research and make certain you are dealing with a reputable and licensed organization?
Debt management plans would look at any equity you may have in your property and would recommend that you take out a loan against your property to pay off your debt.
However with the current mortgage crisis, getting a home equity loans has literally become an nearly impossible task. Also, it can be very dangerous to use your home to pay off debts. Debt management plans can place your home at risk if you are unable to make your home equity loan payments.
Monday, 14 November 2011
Trust Deed Scotland Help
Trust deeds Scotland provide a debt solution for the people who face financial problems. It's an agreement between the debtors and creditors for a debt repayment. It is an option availed to avoid bankruptcy and accept easy payment plan, whereas the creditors also benefit by getting their amount in a safe way. Trust deeds Scotland is considered the best solution if you find yourself in the bankruptcy situation and have no other financial way to get rid of your debts. The first thing you should understand is that how Trust deeds Scotland works, and when you should go for this kind of a solution. If there are debts that are unsecured and there is no possible way that you can repay then trust deeds are the best solution to your anxiety. It is considered the better way out if you want to combine your unsecured debts and also managing mortgage payments side by side.
Initially for Trust deeds Scotland you have to appoint a bankruptcy practitioner as a trustee, who will find out your inflow and outflow amount. What are your expenses and other spending such as, mortgage, taxes, bills and secured loans? Then what is left from the income of the debtor will be divided among creditors in proportion. Later on offer is given to the creditors to decide the monthly amount for 3 years of time; they can object the offer within 5 weeks. A proposal is accepted if no objection is filed or half of the creditors don't object and if total objections are not greater than the third chunk of total money you owe. Then you can start making monthly payments to them till the 3 years of time when debts are considered as fully paid.
Trust deeds Scotland will be of great help if your creditors recognize the agreement and consider it the right option; because otherwise would get less money if they file bankruptcy forcibly. The point of concern for the debtors is what will happen to their assets? All the assets that are considered unessential to the creditor are sold by the trustee and added to the trust fund. All expensive commodities or vehicles that are not vital for creditor will be sold before the actual payment proportions of the creditors are calculated by the trustee.
The equity on your house or property if present has to be realized. After selling it you can add the money in the fund and once the debt amount is cleared than the profit remaining unlike insolvency won't be forced to sell out. Any family member or trustee can help to get a secure loan on the equity worth. The amount of loan you get will be added to the trust, thus reducing the monthly repayment amount because it will be taken directly from your income. Trust deeds Scotland help residents of Scotland to pay their debts without getting bankrupt. You might lose all the assets and other possessions of worth but it is far better option than bankruptcy that ruins personal integrity and market reputation.
Friday, 11 November 2011
News: Scots paying off their debts
SCOTS are paying off their debts at a higher rate than any other part of the UK, but the country as a whole is fearful that credit is becoming increasingly hard to come by, a new report revealed.
More than one in four Scots (28 per cent) have lower levels of debt than this time last year – a figure that has grown rapidly in the past three months.
But the research also shows there is deep unease about the availability of credit over the next 12 months, with two-thirds of people worrying that access to cash will dry up at a time when household incomes are struggling to keep pace with escalating inflation.
A regional breakdown of the statistics revealed that Glaswegians have been paying off debts at a higher rate than Scotland as a whole, with 32 per cent reporting being less in debt now than a year ago – an increase of ten percentage points from July.
In Edinburgh, 19 per cent are less in debt than a year ago, a figure beating other capital cities in the UK – with London showing 15 per cent and Cardiff 4 per cent.
The figures are part of the latest Credit Confidential Credit Index, undertaken with the Centre for Economics and Business Research, whose findings showed that debt levels across every region of the UK are falling for the first time this year, at an average rate of 10 per cent.
The south-west of England showed the lowest figures with 3 per cent compared to the much higher levels in Scotland.
The figures follow the announcement by the British Bankers’ Association last month that in August UK consumers had paid back £100 million more in credit cards and personal debt than they had borrowed in July.
Economist Jonathan Davis said that a possible reason for Scots paying backing more debt was that the economy had a heavy reliance on public-sector employment.
“Instead of actually paying off debt, what I suspect is that the lenders are lending less because there’s more risk of loss from the Scots, because a higher proportion of the economy is public sector and when that gets hammered, so does Scotland,” he said.
“There’s no way on earth that it is because Scots are actively paying down debt because nobody has any money, what with the rising cost of living without similar pay rises, rising unemployment, falling full-time employment.”
The report also showed that fears among consumers about the drying-up of credit have risen since mid-summer, with 67 per cent of people believing that it will be increasingly hard to get credit, up from 62 per cent in July.
A spokesman for Citizens Advice Scotland voiced caution about taking the figures on face value, stating that debt remained a “massive problem” for Scotland.
“The availability of credit is a major concern, and again it is those on the lowest incomes who are most likely to be penalised,” he said.
“For those who are struggling day by day on the poverty line, credit is a fact of life. You have to borrow sometimes – not for luxuries, but just to put food on the table. People need access to affordable credit, and if low-cost credit options are not available they will have no choice but to turn to loan sharks and high-rate lenders.
“Overall, debt remains a massive problem in Scotland.”
Scottish Trust Deed Introducers
Promotion in the press, on the television and on the radio alert many individuals to the possible option of a protected trust deed to deal with their debts. A lot of this marketing originates from the largest protected trust deed providers who have the biggest budgets. Due to the size of their call centres and processing centres, these operators are sometimes referred to amongst industry experts as "trust deed factories". Plenty of people may respond positively to the idea of a factory-type operation as it suggests speed and efficiency.
Lots of people however require a strong level of expert personal communication both prior to and throughout one of the most significant financial decisions they will ever make. The key to excellent personal interaction is having a committed high-level contact during the whole trust deed process that won't fluctuate frequently. This isn't always available with the largest trust deed providers. Quite justifiably many debtors also hope to have access to the Insolvency Practitioner (IP) who will be their "Trustee". This is occasionally unavailable at the bigger providers where the IP concerned may just be too busy to talk to individual debtors.
Scottish trust deed "introducers" also produce a lot of the media advertisements. These introducers work at the start of the Scottish trust deed process to introduce debtors to protected trust deed operators; they don't deal with your case themselves. The most effective introducers should provide their clients with professional advice on other debt resolution options, e.g. DMPs, bankruptcy or the debt arrangement scheme. Unfortunately there are some introducers that don't employ qualified advisors. You should be wary of these, particularly since a protected trust deed is such a huge financial decision. Financial motivation may be present for introducers; therefore they will probably recommend the financial advisor that's paying the most rather than one with the best customer service. Before committing to any one operator search for information and read reviews so you have a clearer idea of the customer service you should expect.
Lots of people however require a strong level of expert personal communication both prior to and throughout one of the most significant financial decisions they will ever make. The key to excellent personal interaction is having a committed high-level contact during the whole trust deed process that won't fluctuate frequently. This isn't always available with the largest trust deed providers. Quite justifiably many debtors also hope to have access to the Insolvency Practitioner (IP) who will be their "Trustee". This is occasionally unavailable at the bigger providers where the IP concerned may just be too busy to talk to individual debtors.
Scottish trust deed "introducers" also produce a lot of the media advertisements. These introducers work at the start of the Scottish trust deed process to introduce debtors to protected trust deed operators; they don't deal with your case themselves. The most effective introducers should provide their clients with professional advice on other debt resolution options, e.g. DMPs, bankruptcy or the debt arrangement scheme. Unfortunately there are some introducers that don't employ qualified advisors. You should be wary of these, particularly since a protected trust deed is such a huge financial decision. Financial motivation may be present for introducers; therefore they will probably recommend the financial advisor that's paying the most rather than one with the best customer service. Before committing to any one operator search for information and read reviews so you have a clearer idea of the customer service you should expect.
As well as large trust deed businesses there are also a number of medium-sized companies specialising in this field. Focusing on only Scottish trust deeds and personal debt they possess the expert knowledge to deliver professional personal interaction to their clients. As a consequence of their manageable size they will probably offer one advisor to contact throughout the process, meaning consistency for the client. An advantage of this is that it minimises the risk of confusion as your case will not be handled by numerous departments. It is likely that you will be able to speak to a Trustee directly regarding your Scottish trust deed, enabling them to respond to your questions and give you reassurance if that is what you need.
Conventional accountancy firms provide help with tax, auditing and other services in addition to trust deed insolvency services. Except for companies that have specialist trust deed departments they may be missing some of the trust deed expertise found elsewhere. Where they do have dedicated trust deed departments they are likely to provide equal benefits to a debtor that may be present at a medium-sized trust deed specialist. Continuity of contact with well-trained people working beyond a call centre environment will usually be in the interests of the debtor.
Individual Insolvency Practitioners (or those functioning with little assistance) also sometimes supply Scottish trust deed services and advice. In some circumstances sole practitioners in this environment might not be completely up to speed with current creditor acceptance criteria and other issues of great importance. It may be worth considering a different more specialised source of Scottish trust deed advice.
Conventional accountancy firms provide help with tax, auditing and other services in addition to trust deed insolvency services. Except for companies that have specialist trust deed departments they may be missing some of the trust deed expertise found elsewhere. Where they do have dedicated trust deed departments they are likely to provide equal benefits to a debtor that may be present at a medium-sized trust deed specialist. Continuity of contact with well-trained people working beyond a call centre environment will usually be in the interests of the debtor.
Individual Insolvency Practitioners (or those functioning with little assistance) also sometimes supply Scottish trust deed services and advice. In some circumstances sole practitioners in this environment might not be completely up to speed with current creditor acceptance criteria and other issues of great importance. It may be worth considering a different more specialised source of Scottish trust deed advice.
Monday, 24 October 2011
IVA and Trust Deed Debt Advice
IVA and Trust Deed Debt
The difference between an IVA and a Trust Deed is minimal, although significant. In Scotland, the debt solution is called a Protected Trust Deed, while the rest of the UK calls it an IVA. The difference is the law.
Both debt solutions enable you to repay a proportion of your debt (what you can afford) and have the rest written off. However, there are subtle differences between an IVA and Trust Deed for instance;
- They are governed by a different legal system
- An IVA lasts usually for a minimum of 5 years (6 if you have property)
- A Trust deed usually lasts for a minimum of 3 years
- If you have equity in your property in an IVA then the solution can last for an extra year
- If you have equity in your property in a Trust Deed then you must remortgage or refinance (possibly even sell) the house
- The minimum amount of unsecured debt to enter a Trust Deed is typically £10,000, whereas it's £12,500 in an IVA
- When you put the proposal to your creditors the system is completely different (1/3rd in value must accept or majority in number of creditors for a Trust Deed, in an IVA its 75% must accept)
The benefits of an IVA and Trust Deed
There are both benefits and negatives of an IVA and Trust Deed. The benefits include;
- Only repay what you can afford each month
- Stop creditors pestering you; the IVA / Trust Deed company will look after that
- The solution is legally binding so if your creditors agree to your IVA / Trust Deed then they can't go back on the agreement
The negatives of an IVA and Trust Deed
- The IVA and Trust Deed will have a negative impact on your credit rating
- If the solution fails you would face Bankruptcy
- Your creditors don't have to accept your proposal so make it as good as possible
The difference between an IVA and a Trust Deed is minimal, although significant. In Scotland, the debt solution is called a Protected Trust Deed, while the rest of the UK calls it an IVA. The difference is the law.
Both debt solutions enable you to repay a proportion of your debt (what you can afford) and have the rest written off. However, there are subtle differences between an IVA and Trust Deed for instance;
- They are governed by a different legal system
- An IVA lasts usually for a minimum of 5 years (6 if you have property)
- A Trust deed usually lasts for a minimum of 3 years
- If you have equity in your property in an IVA then the solution can last for an extra year
- If you have equity in your property in a Trust Deed then you must remortgage or refinance (possibly even sell) the house
- The minimum amount of unsecured debt to enter a Trust Deed is typically £10,000, whereas it's £12,500 in an IVA
- When you put the proposal to your creditors the system is completely different (1/3rd in value must accept or majority in number of creditors for a Trust Deed, in an IVA its 75% must accept)
The benefits of an IVA and Trust Deed
There are both benefits and negatives of an IVA and Trust Deed. The benefits include;
- Only repay what you can afford each month
- Stop creditors pestering you; the IVA / Trust Deed company will look after that
- The solution is legally binding so if your creditors agree to your IVA / Trust Deed then they can't go back on the agreement
The negatives of an IVA and Trust Deed
- The IVA and Trust Deed will have a negative impact on your credit rating
- If the solution fails you would face Bankruptcy
- Your creditors don't have to accept your proposal so make it as good as possible
Sunday, 23 October 2011
Tips on getting credit
Essential Tips on How to Get a Credit Card
Banks and their marketing associates and divisions are vying with one another to capture a thick slice of the "credit card pie." Offers by phone and mail of free credit cards, pre-approved credit cards, cards with special bonanzas, money back schemes, low introductory rates, and umpteen other perks pour in tempting you everyday.
A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.
Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.
Before you decide find out
The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.
The other side is that you can get carried away and live beyond your means, ultimately falling into debt.
To be eligible you need:
There are many kinds of credit cards to choose from. Unsecured standard and classic cards are those with a credit limit of £2000 and generally charge higher interest rates and offer lower or less favorable terms than the platinum and gold cards. Unsecured platinum and gold cards are for people with high credit ratings, and the limits for these cards are between £2000 to £100,000.
Here are a few links that will give information and opportunities to apply for cards online:
Tips:
Choose wisely and live debt free.
A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.
Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.
Before you decide find out
The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.
The other side is that you can get carried away and live beyond your means, ultimately falling into debt.
To be eligible you need:
- To be at least 18 years old.
- Have some income or the backing of credit worthy parents.
- Have an operational bank account.
- A telephone.
- A good credit rating. Your monthly expenses must not equal or exceed your income. Ideal expenses must account for approximately 50% of your income.
- To get a Visa or Master card your income must exceed £12,000 a year. Or, you need to apply for a secured credit card where you pay upfront a certain amount of money as security deposit.
Here are a few links that will give information and opportunities to apply for cards online:
- Visa at www.usa.visa.com/?country=us&ep=v_gg_new provides information, gives tips, and has listed a number of financial institutions that offer Visa cards and a wide range of services. One can apply for a card online.
- MasterCard International at www.mastercard.com/index.html is comprehensive with information, advice, and options of choosing and applying for a card online. They have an online form which when filled will give information of which card would be ideal and a channel which provides instant comparison of various card options.
- CreditCards.com at http://www.creditcards.com/ has articles, FAQs, a site map, and online application channels.
- Pick a card because it has the lowest APR.
- Pick a card because all its terms and conditions have been carefully vetted by you. Read the fine print.
- Never pick a card because it is free for a year or life.
- Do not choose a card because it offers a low introductory rate.
- Do not choose a card because it has a cash back policy or great rewards programs.
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