When it comes to tackling debt, there are a number of different options available that can help you to get on top of your finances and take control. If you live in Scotland, and are struggling to meet your debt repayments, then one solution worth considering is a Trust Deed. Here we take a closer look at what Trust Deeds are, and how they could benefit you.
What is a Trust Deed?
A Trust Deed is a formal and legally binding agreement between you and your creditors and allows you to repay your unsecured debts without declaring bankruptcy. As part of this agreement, you agree to pay back an affordable amount each month, over a certain period of time. After this period (typically 48 months) has ended, you’re discharged from any outstanding liabilities included in the Trust Deed.
Trust Deeds can only be arranged through a trustee, and these individuals must be qualified insolvency practitioners.
What is a Protected Trust Deed?
Providing it meets certain requirements, a Trust Deed can also be listed on the Register of Insolvencies as a protected Trust Deed. Once a Trust Deed becomes protected, providing you comply with the terms of the Trust Deed, your creditors can take no further action to recover the debts they’re owed.
Why Consider a Trust Deed?
There are a number of reasons why an individual might choose to take out a Trust Deed and these can have a number of advantages. For example, your trustee will be responsible for dealing with your creditors and any interest and charges on your debts will be frozen from the date you sign the Trust Deed.
If you’re considering taking out a Trust Deed, then it’s essential you seek professional, expert advice. Here at Debt Advisory Services (Scotland) Limited we have many years of experience providing debt advice and are able to offer a range of debt solutions including Trust Deeds. If you’d like more information or advice about Trust Deeds in Scotland, please don’t hesitate to contact us today, by giving us a call on 0800 011 2322, to speak to a member of our friendly team.