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Trust Deed Services Scotland

A protected trust deed is available for debtors in Scotland. It is not available for debtors in Northern Ireland, Wales or England.
A protected trust deed is essentially a legally binding agreement. A debtor makes reduced payments for a period of four years. Following this period, the unsecured debts are written off. Repayment to debtors for a period of four years is arranged with the aid of an Insolvency Practitioner.

A trust deed is a kind of insolvency. The unsecured debts should exceed the value of assets for a debtor to be eligible for a trust deed. The assets may be houses or vehicles.

The unsecured debts may include store card, personal loans and credit card debt.

A solution similar to trust deeds is Individual Voluntary Arrangement (IVA). But it has different advantages, risks and fees associated with it.

There are certain benefits that Trust Deeds come with:

Once the trust deed is approved, creditors wouldn’t bother you for repayments. They wouldn’t add more charges or interests to your debts. They can’t take any legal action either.

While a debtor may be required to sell some assets, he is permitted to keep one vehicle which is worth £3,000.

Even while a protected trust deed is a formal solution, a debtor need not appear in court.

A few risk factors are associated with trust deeds as well:

Charges for the services of Insolvency Practitioner are derived from the debtor’s monthly payment towards the trust deed. A debtor should be aware about the percentage of charges that this would be.

A trust deed may even render its effects over the debtor’s terms of employment. It is best to consult with the HR department regarding what these would be.

In the event that a trust deed fails, there would be a risk of bankruptcy.

Trust deeds also lay an influence over credit ratings. They are affected for a period of six years, starting from the date wherein the arrangement was agreed upon.

There are certain very important factors to consider with protected trust deeds. Before going ahead with the decision of entering into a protected trust deed, one must seek expert financial advice. They would be in the best position to offer unbiased advice over the situation.

A few of the top points to consider include:

There can be some typical outcomes related with a trust deed arrangement. In the event that one enters into a trust deed and then rents his own property, his landlord may terminate his tenancy agreement.

A homeowner entering into a trust deed agreement may have to release equity from his property.

Similarly it is very important to communicate with the trustee in case the financial situation undergoes a change. Events such as inheriting money or losing employment must be reported to the trustee.

It is then only the debts that are included in the trust deed will be written off following a period of four years.

Another important consequence of a trust deed arrangement is that the debtor may be required to live within a budget for a period of four years. While this affects employment, it also renders effects over any hire purchase agreements that a debtor may have.
The debtor’s details are also added to a public register which is known as register of insolvencies. This would be for a period of five years.

 

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Lorem ipsum, in graphical and textual context, refers to filler text that is placed in a document or visual presentation.

What does Lorem Ipsum mean?

Lorem ipsum, in graphical and textual context, refers to filler text that is placed in a document or visual presentation.

What does Lorem Ipsum mean?

Lorem ipsum, in graphical and textual context, refers to filler text that is placed in a document or visual presentation.

What does Lorem Ipsum mean?

Lorem ipsum, in graphical and textual context, refers to filler text that is placed in a document or visual presentation.

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