If you are living in
Scotland and have taken on too much debt, and if you now cannot pay it all back
then you may be looking at Scottish Trust Deeds. A trust deed is where the
debtor and creditor have agreed on an alternative payment plan. It is voluntary
on both sides and means that part of the debt will have to be paid back.
The trust deed is set up by a trustee. They will work out together the whole agreement and will manage it. http://www.trustdeedscotland.org.uk/ A trustee is an insolvency practitioner, and as such is regulated by law and also by their own regulatory body.
A trust deed will set out the detail of the monthly payments that will be made to creditors. The payments will be made for three years, and after this time any debt that has not been paid off will have to be canceled by the creditor. It is not a method of getting out of a loan as it can only be set up if the person is unable to make the current monthly payments.
A person considering setting up a trust deed would have to give all their financial details to the trustee. They would have to give details of the amount owed, and the amount that they think they can afford every month. http://www.trustdeedscotland.org.uk/sequestration/ They would also have to give details of all other relevant information such as other debts, rent or mortgage.
If someone owes money to more than one creditor, then it can all be set up in one single trust deed. Once the trustee has all the details, then they will contact all the creditors on behalf of the debtor. They will try to get them to agree to a new payment scheme.
A trust deed is advantageous as it lessens the stress of dealing with debt, as all correspondence comes through the trustee. http://www.trustdeedscotland.org.uk/iva/ It is less severe than bankruptcy as it is not published anywhere. If the debtor holds a position of public office, then it may be possible for them to retain this. If someone is a director of a company, then they may be able to continue trading.
Once the trust deed has been agreed to by all parties, then it is protected. This means that after the three year period is up the creditors have no choice but to write off any remaining debt. The debtor has a responsibility to make the monthly payments and to declare any unexpected windfalls which are over two hundred pounds. They must also not take on any more credit during this period.
It is quite likely to affect any property that is owned by the debtor, as the lenders will expect to have the right to claim any equity. If the debtor is in this position, then this may not be a good idea for them. They should get specialist advice from somewhere like Debt help Scotland as to the alternatives to Scottish trust deeds. Any decision to take out one of these trust deeds should involve a lot of thought and discussion with a professional as they are very serious and can affect quite a lot of things in a person's life.
The trust deed is set up by a trustee. They will work out together the whole agreement and will manage it. http://www.trustdeedscotland.org.uk/ A trustee is an insolvency practitioner, and as such is regulated by law and also by their own regulatory body.
A trust deed will set out the detail of the monthly payments that will be made to creditors. The payments will be made for three years, and after this time any debt that has not been paid off will have to be canceled by the creditor. It is not a method of getting out of a loan as it can only be set up if the person is unable to make the current monthly payments.
A person considering setting up a trust deed would have to give all their financial details to the trustee. They would have to give details of the amount owed, and the amount that they think they can afford every month. http://www.trustdeedscotland.org.uk/sequestration/ They would also have to give details of all other relevant information such as other debts, rent or mortgage.
If someone owes money to more than one creditor, then it can all be set up in one single trust deed. Once the trustee has all the details, then they will contact all the creditors on behalf of the debtor. They will try to get them to agree to a new payment scheme.
A trust deed is advantageous as it lessens the stress of dealing with debt, as all correspondence comes through the trustee. http://www.trustdeedscotland.org.uk/iva/ It is less severe than bankruptcy as it is not published anywhere. If the debtor holds a position of public office, then it may be possible for them to retain this. If someone is a director of a company, then they may be able to continue trading.
Once the trust deed has been agreed to by all parties, then it is protected. This means that after the three year period is up the creditors have no choice but to write off any remaining debt. The debtor has a responsibility to make the monthly payments and to declare any unexpected windfalls which are over two hundred pounds. They must also not take on any more credit during this period.
It is quite likely to affect any property that is owned by the debtor, as the lenders will expect to have the right to claim any equity. If the debtor is in this position, then this may not be a good idea for them. They should get specialist advice from somewhere like Debt help Scotland as to the alternatives to Scottish trust deeds. Any decision to take out one of these trust deeds should involve a lot of thought and discussion with a professional as they are very serious and can affect quite a lot of things in a person's life.
