If you find yourself swamped by debts and you cannot see a way of coping with them, there is a way to make them manageable that will fit into almost any budget.
Of the many debt management options available, the easiest solution in some cases is to reduce all the payments you are having difficulty with into one affordable monthly payment through what is known as a Trust Deed.
What is a Trust Deed?
A protected Trust Deed in Scotland is a formal, legal arrangement between you and your creditors. This generally spans a four-year period, although a greater length of time can be considered. It is a legal agreement that can only be carried out through a licensed Insolvency Practitioner because they are legally qualified to act as the Trustee.
How do Trust Deeds work?
Scottish Trust Deeds can only be arranged by Debt Advisory Services (Scotland) are these are only available to official residents of Scotland. They are designed to help people who are unable to cover the amount of money necessary to repay their debts when these debts amount in total to more than £8,000. Once the Trust Deed has expired, any money still owed is written off, though there are some exceptions to this, which you will be made aware of from the outset.
Protecting Your Assets
Trust Deeds are important because they offer protection from creditors taking legal action against you, and prevent your home and car from being repossessed. Once it is officially recorded in the Register of Insolvencies as a Protected Trust Deed, provided all applicable conditions are met, it then becomes ‘protected’.
When a Trust Deed in Scotland becomes protected, no further action can be taken against you by your creditors for the recovery of the money you owe them – this includes taking any legal action, or attempts at repossessing any of your property, vehicles, or belongings. Provided you meet the conditions of the Trust Deed, the balance of any unsecured debts is generally written off after the Trust Deed has successfully completed its life span.
Looking for advice on Trust Deeds? Contact us at Debt Advisory Services today.