Introduction to a Trust Deed in Scotland
In you are struggling to keep on top of your bills and find yourself living on a month-to-month basis, there is a fair chance that you are using payday loans or further credit in order to serve your debts.
If this sounds like you – you are not alone
In the first three months of 2011, over two thousand Scottish residents used a Trust Deed in Scotland to resolve their financial burden.
A Trust Deed in Scotland, uses government legislation to clear debts and get you back on track but there are a number of falsities that surround Trust Deeds in Scotland
This false perception is created not only by word-of-mouth opinion but by debt collectors and lenders who do not always have the correct level of knowledge on Trust Deeds in Scotland, or at least to the same level of knowledge as the English, Welsh and Northern Irish equivalent known as an Individual Voluntary Arrangement.
Trust Deeds explained
Trust Deeds can be setup without the need of assessment fees, setup fees or any other hidden charges. A Trust Deed is a solution to debt and any reasonable Trust Deed company will not charge setup fees.
Trust Deeds can clear unsecured debts from £10,000 and up to £100,000. Sometimes this figure can be higher but it depends on the offer of repayment and other factors such as assets.
A Trust Deed in Scotland will last a typical period of 36 months. Some Trust Deeds can last 48 months or longer, there will be a setup time of 4-6 weeks usually and there can sometimes be administrative delays with discharge from Trust Deeds. This is not uncommon.
Trust Deeds in Scotland will freeze interest and charges and write off a percentage of the debt. As part of the legislation, the Trust Deed proposal is designed to not only to allow you to repay your debt but to write off some of the debt too. Most lenders would prefer a person to seek a Trust Deed over Sequestration so in most cases a reasonable offer of repayment has a high chance of being accepted (Protected) if this does not look likely, a reputable money advisor will inform you of this prior to formerly applying for the Trust Deed.
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Trust Deeds are a voluntary action taken by yourself and the process is administered by an Insolvency Practitioner who shall appoint a person as your ‘Trustee’
There is no court action. As a Trust Deed is a voluntary action taken up by yourself, it is a civil agreement between yourself and your creditors.
Your Trust Deed will not appear in the local newspaper. The Trust Deed is posted in the Edinburgh Gazette, a formality of the Trust Deed application but this is a publication paid for and read by individuals in the financial sector, usually creditors.
Not all your creditors need to agree to the proposal. 66% of the debt total must agree but again this would be explained prior to signing the Trust Deed and no reputable Trust Deed company would refer you for a Trust Deed if they felt there is a high risk of Trust Deed rejection.
A Trust Deed can be taken up by Scottish residents who have resided in Scotland for the previous 6 months. This means that any UK or EU national who has lived in Scotland for the previous six months can apply for a Trust Deed, assuming of course that only UK debt is included.
Other aspects for consideration regarding Trust Deeds in Scotland
For a comprehensive introduction to Trust Deeds, you should be aware of other factors that will influence your decision to apply for a Trust Deed in Scotland.
Your credit rating will be affect while on the Trust Deed and a number of years after. Once complete you will need to rebuild your credit history.
Homeowners with surplus equity are generally unsuitable for Trust Deeds in Scotland. You should discuss this with your Trust Deed advisor and you should insist that the house valuation is carried out by the firm that you choose free-of-charge. Any reasonable Trust Deed introducer will agree to this.
There are other options in Scotland for managing your finances. You can use debt consolidation loans (consider this carefully before pursuing and generally only consider if you can reasonably afford and you can write off some of the debts) or Debt Arrangement Schemes which are a more practical way of clearing debts. For some Sequestration (Scottish Bankruptcy) may be more desirably, though it is often a last resort.
To fully understand a Trust Deed in Scotland and you find out if you would qualify for a Trust Deed you can speak to Trust Deed Scotland today for a confidential consultation. All advice offered by Trust Deed Scotland is free and without obligation.
Trust Deed Scotland as seen on Scottish Television (STV) are a leading introducer of Trust Deeds.
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