As more and more people in Scotland find themselves in debt, there is a need for debt advice and debt solutions now more than ever due to the ever increasing levels of difficulty much of Scotland finds itself in.
Scottish trust deeds are one such debt solution, it is one of Scotland’s most popular debt help solutions due to its ability to write off large portions of debt for people who have £5,000 or more owed out to lenders and creditors.
What Are The Advantages Of The Scottish Trust Deed?
One low monthly payment which has been consolidated as opposed to the larger repayments (pre trust deed) which the debtor was struggling with, making the monthly payments much more manageable.
No more creditor hassle or legal action, No CCJs, no court orders, no further problems from lenders, all of this is managed by an appointed representative so the person in debt no longer needs to worry about dealing directly with their creditors or attending court hearings, the same applies for bailiff visits and other sources of unpleasant issues and general communication from lenders, this is all the responsibility of the appointed representative once the trust deed is underway.
All Interest and charges are frozen as part of the trust deed, which is an initiative designed to help people remove their debt using this debt solution.
After 4 years, any remaining debt is removed (usually without the need to sell assets and other valuables to repay the balance), enabling people to focus on improving their personal circumstances, meet the needs of daily life, and pay off their debts’ without living in fear of losing their home.
All unsecured personal debts are eligible for inclusion in a Scottish trust deed provided they are not monies owed to the crown, to the courts, secured, there are certain other personal liabilities which are not suitable for inclusion into a trust deed, such as guarantor loans, logbook loans and other types of personal credit, however other costs can be helped by addressing other personal debts which leaves more room financially to make payments to non eligible debts.
The above are the primary advantages of Scottish trust deeds, however there are other benefits such as the fact that HMRC debts’ can be included within a trust deed.
Trust deeds are relatively fast to setup, with the process not taking longer than 3-4 weeks in many cases, meaning people can start to realise the benefits of the protected trust deed without having to wait for a long period of time (subject to qualification), the qualification criteria for a deed of trust is to have a minimum of £5,000 of debt and 2 or more lenders.
For England, N Ireland and Wales residents there is another debt solution known as the IVA (Individual Voluntary arrangement) which is the equivalent to a Scottish trust deed, for more information on the IVA or a good quality IVA service, see this page.