Due to the current economy scenario, more and more people are found struggling with their financial problems. In Scotland debt problem has almost become like a fact of life. But one should be able to identify when it can be solved internally and when the need to take help from experts / externally. There are qualified professionals and companies who will suggest solutions which are the best as per the situation.
In such situations all a person can think and all he wants is to get away from the huge burden of debts. But in such matters one needs to think hard and only then can you manage to come to some practical solutions.
In such situation a Scottish trust deed is a very helpful arrangement made which is like a win-win situation for both the debtor and the creditor. Is this term new to you? Let’s see what is a Scottish trust deed, how it works and advantages for the same.
A trust deed is a legal agreement between and individual and the creditor when an individual is not able to pay off his significant dues (if the person has debts of more than £8000). It normally lasts for 4 years. It is a mandate that this agreement can be carried out only through an Insolvency Practitioner who is also known as a Trustee.
Let’s see how this deed works in favour for both the parties:
The trustee or the Insolvency Practitioner will first understand the current circumstances that you’re in and will try to chalk out a budget taking into consideration your income, expenses and debts whether they are unsecured or secured. Then he would be in a position to suggest to you about your affordable monthly onetime payment towards your creditor.
If things work out legally and are fine with you, a deed is prepared and is then shared with all the creditors. It will detail what sum would you be able to pay, about assets and how would they be dealt and exactly what amount can the creditor expect over this deed.
It is not necessary for a creditor to oblige with this deed. But if 65% of them agree then this deed will be said as Protected which means that no legal action can be taken by the creditors and they need to abide by the terms of the Trust Deed in Scotland. And you can now start making payments regularly as mentioned and agreed by in the deed. Once all payments have been made and the terms complied with, the creditor would be discharged from the debt.
You might also be thinking what the advantages are if I need to opt for a Trust deed. Let’s check out the advantages on the same:
- Individual budget is considered and only then a monthly amount is fixed.
- Get rid of unwanted pressurising calls or communications from Creditors.
- The creditors would not be able to take any further legal action once the deed is protected.
- Costs for these deeds are not a headache by the debtor as it needs to be agreed by the trustee and the creditor.
If you need more information on this matter, contact us at www.debtadvisoryscotland.net