A Trust Deed is a debt solution which is available to people who line in Scotland.
Seen to be equivalent to an Individual Voluntary Arrangement (IVA) or Bankruptcy and it is normally used if your debts are over £10,000.
Although considered to be an informal bankruptcy, a Trust Deed is regulated by The Bankruptcy (Scotland) Act 1985.
The main purpose of a Trust Deed is to help the applicant pay off their debts with the help of a trustee and is normally put into place when the debtor does not have sufficient income to pay off their unsecured debts.
The Trust Deed is setup by sitting down with your Insolvency Practitioner and going through all the details.
The Trust Deed is then signed after which the IP will present the Trust Deed to the creditors.
It's important that the Trust Deed is protected and getting two thirds of the creditors to agree to the Trust Deed does this.
A protected Trust Deed ensures that the creditors, including those who may not have agreed, cannot enforce their debt further.
The Benefits of a Trust Deed Once a debtor has met with an Insolvency Practitioner (trustee) and established how much can be paid each month the Trust Deed can be completed and put into place in a very short period of time.
This is normally around 7 days.
When the Trust Deed is started it means that all interest payments relating to your unsecured debts must be stopped by all your creditors.
This will obviously help to keep your debts to a minimum for the duration of the Trust Deed.
A Trust Deed is normally completed in 3 years after which all your debt would be paid off.
You should take this opportunity to educate yourself on better financial control as after the 3 years is up you don't want to find yourself on the same path that lead to the Trust Deed.
Unlike a bankruptcy the details of your Trust Deed will not be made public so you can keep this information from your employers, which could help you keep your job.
Not all employers are sympathetic to your debt problems.
Another great benefit of the Trust Deed is that your Insolvency Practitioner handles the whole process.
They will handle all the correspondence with the creditor, which takes away a lot of the stress associated with dealing with creditors who can be very demanding when it comes to payments.
Once the Trust Deed is in place you will only have to pay a single monthly payment towards your debt.
A Trust Deed can be a very effective way to get out of debt.
You should always use the service of a paid or free debt counsellor to learn about the pros and cons of a Trust Deed before committing yourself to this route of debt help.
Seen to be equivalent to an Individual Voluntary Arrangement (IVA) or Bankruptcy and it is normally used if your debts are over £10,000.
Although considered to be an informal bankruptcy, a Trust Deed is regulated by The Bankruptcy (Scotland) Act 1985.
The main purpose of a Trust Deed is to help the applicant pay off their debts with the help of a trustee and is normally put into place when the debtor does not have sufficient income to pay off their unsecured debts.
The Trust Deed is setup by sitting down with your Insolvency Practitioner and going through all the details.
The Trust Deed is then signed after which the IP will present the Trust Deed to the creditors.
It's important that the Trust Deed is protected and getting two thirds of the creditors to agree to the Trust Deed does this.
A protected Trust Deed ensures that the creditors, including those who may not have agreed, cannot enforce their debt further.
The Benefits of a Trust Deed Once a debtor has met with an Insolvency Practitioner (trustee) and established how much can be paid each month the Trust Deed can be completed and put into place in a very short period of time.
This is normally around 7 days.
When the Trust Deed is started it means that all interest payments relating to your unsecured debts must be stopped by all your creditors.
This will obviously help to keep your debts to a minimum for the duration of the Trust Deed.
A Trust Deed is normally completed in 3 years after which all your debt would be paid off.
You should take this opportunity to educate yourself on better financial control as after the 3 years is up you don't want to find yourself on the same path that lead to the Trust Deed.
Unlike a bankruptcy the details of your Trust Deed will not be made public so you can keep this information from your employers, which could help you keep your job.
Not all employers are sympathetic to your debt problems.
Another great benefit of the Trust Deed is that your Insolvency Practitioner handles the whole process.
They will handle all the correspondence with the creditor, which takes away a lot of the stress associated with dealing with creditors who can be very demanding when it comes to payments.
Once the Trust Deed is in place you will only have to pay a single monthly payment towards your debt.
A Trust Deed can be a very effective way to get out of debt.
You should always use the service of a paid or free debt counsellor to learn about the pros and cons of a Trust Deed before committing yourself to this route of debt help.