Say Yes To Scottish Trust Deeds for Debt Relief
Lack of funds creates enough problems in life. You have to postpone some transactions and pay the creditors first. The payments to the creditors are the biggest priority. Do not lose hope if you are unable to arrange funds, as you can go for effective debt solutions. For a fresh start, Scottish trust deeds provide you ultimate protection from the creditors for the recovery of debt. Situations may arise where you put in a lot of efforts, but you were not able to collect funds. A Scottish trust deed is basically an agreement between the debtors and the creditors for a fixed tenure. The tenure is for four years where the borrower has to pay a fixed amount of money every month to the creditors. It is an amount approved by consent of both the parties with the help of an Insolvency Practitioner.
The insolvency practitioner charges professional fees for the drafting of the trust deed agreement between the two parties. The amount charged is deducted from the amount paid to the creditors as settlement. The insolvency practitioner is a qualified professional offering his support and knowledge for settlement of debt disputes between the creditors and the borrowers.
With his intervention, the borrowers get a lot of support in clearing their debts legally with the creditors. The insolvency practitioner acts as trustee for the trust deed and offers great support to the borrower. If you are struggling with the payments, being a resident of Scotland, you can apply for the relief under a Scottish trust deed. Visit trustdeedcalculator.co.uk for more information.
The services offered by the insolvency practitioner are-
- Drafting the proposal- The practitioner will go through your financial health and accordingly advise to form a practical budget for making monthly payments. He will accordingly draft the proposal for the trust deed to present before the creditors for their consent.
- Negotiate with the creditors- The proposal drafted is sent to the creditors with all the details of the trust deed and the amount proposed for the fixed tenure. The creditors have to respond within five weeks. If there are no objections made against the deed or if the creditors do not respond, the trust deed is assumed to be accepted. Thereby, it achieves a protected status providing a relief to the borrower.
- Completing the formalities- When the trust deed is signed, the nominated trustee enters all the important information. Thereafter, within seven days, it is the responsibility of the trustee to provide a notification to all the creditors by sending a copy of the trust deed, claim for financial statement and entry made to the Register of Insolvencies.
- Protections to the borrower- Once the trust deed gets the protection status, the creditors have no right to ask for recovery of debts from the borrowers. The interest and charges are frozen and do not accumulate to the increase of the debt amount. If you have equity, you can release it to the trustee who would pay to the creditors. The insolvency practitioner is there for you to advice on financial matters to get rid of your debt as soon as possible.
Why will your creditors agree to Trust deeds?
As of now you must have heard about the trust deeds of Scotland. These deeds help you out when you are facing unsecured debts and are almost on the verge of bankruptcy. However, when it comes to trust deeds, people prefer to do their own research online. And if you’re a resident of England, Wales and Northern Ireland, you should be looking at IVA which is explained at http://www.ivapros.co.uk.
Most debtors of Scotland tend to have a common question: “will my creditors accept my trust deed request?” Even though this is a very common question, the answer is not that simple. You need a certain percentage of your creditors to accept your arrangement to get this arrangement approved. You do not need them all to approve it.
The fact however is that the creditors do have a valid reason to accept your proposal. This is because, if you are really facing bankruptcy and they can sense that they are going to get nothing from you, they will prefer getting at least something and accepting the trust deed process. So there are a lot of scenarios when the creditors are actually okay with you paying off only a certain percentage of your debt. The reasons can be as follows:
- When the debtor is not able to pay off: Every year, thousands of Scotland residents face the problem of bankruptcy. How can they be helped in such a scenario? The best thing is to accept whatever percentage is coming to their way. So in a way the creditors accommodate the debtors.
- Trust deeds are a better solution: Whenever such a situation of bankruptcy or similar circumstance arises, the trust deeds actually make sure that the creditors are paid fair and square. These things are handled by the insolvency practitioners; hence the creditors are able to see that whatever they are being paid is the best that could be paid by this debtor.
- The expertise of the insolvency practitioner firm: Creditors know that the companies have been dealing with creditors for a long time; hence they already know what the creditors are expecting. They can also strike a conversation with the insolvency practitioner, explaining to them these problems.
- Talks are in with the creditors too: The trustees talk to the creditors and the debtors alike and then come to the conclusion about how much the debtor should be paying off to get out of this situation. Of course the creditor’s needs are taken into consideration.
These are some of the reasons why your creditor will agree to your trust deed. If that is the sole reason you are not getting a debt payment solution, then you should reconsider. Most importantly, if you think bankruptcy is the only solution before you, then you should definitely consider getting trust deeds of Scotland.
Advantages of Trust deeds
There are other debt solutions such as getting a debt arrangement Scheme and so on, but if you are solely looking at trust deeds, here are the few perks of trust deeds which you might want to know about:
- Your trustee will deal with all the creditors. You will not have to interact with them.
- Once the trust deed has been sealed as “protected” your creditors will not be able to take any legal action against you.
- You can just make one single payment each month throughout your term. This payment will be distributed among your creditors. You do not have to worry about paying each creditor individually.
- Even though a trust deed can go until 3 years, it usually lasts for 48 months. Once it is over, your excess debt will be written off and your creditors cannot ask you to return the sum anymore.
- It is highly unlikely that you will be pushed to sell your house. If you are able to release the equity from your other assets, you can definitely avoid this step.
- If you have your own business, you might even be able to continue trading.
- It is highly unlikely that it will affect your job however. You should always check with the terms and agreements of your employment before going with trust deeds.
- Once a trust deed is granted the protected status, it will help you uplift and prevent earning statements.
For more information on trust deeds, visit trust deed Scotlands website here.