500 Word Guide To Trust Deeds
Who Might Consider A Trust Deed?
Are you struggling to keep on top of your debts? Have your debt payments fallen into arrears? Will you soon become unable to keep up with the repayments? If you are having a tough time with your debts a protected trust deed might be one of the options to consider. You’ll need to be resident in Scotland and you’ll also need to be in a position to contribute something towards your debts.
What Exactly Is A Scottish Trust Deed?
It’s a form of personal insolvency. You propose a formal compromise to your creditors (with the assistance of an insolvency practitioner). This compromise will involve making payments from your income and/or releasing the value of certain assets that you might own. Where the proposal is subsequently accepted (and becomes a protected trust deed) the arrangement becomes legally binding on you, the creditors and your trustee. It’s possible that some of your debt will be written-off as a result of this compromise after a certain period of time.
When Should You Go Ahead With A Protected Trust Deed?
You should first seek advice from a qualified debt adviser or insolvency practitioner to discover what all of your debt resolution options are. Each option will have pros and cons depending upon your own personal circumstances. Once you have weighed up the advantages and disadvantages of each available option you should be ready to make a final decision.
Where Can You Get Good Quality Advice?
Lots of people have set themselves up as “debt advisers”. Many have no qualifications and some are primarily motivated by making money from you. Money advisers at your Local Authority or CAB could be a good source of advice. Insolvency practitioner firms, such as those represented within the forum of this site, are typically well-regulated and well-trained. Our own in-house team of debt advisers are each professionally qualified to offer advice on all debt resolution options.
Why Should You Choose A Trust Deed?
Actually… maybe you shouldn’t! Depending upon your unique circumstances it might be that sequestration (bankruptcy) or the debt arrangement scheme could be more suitable for you. Sometimes people prefer trust deeds versus bankruptcy due to the stigma they perceive is associated with the latter. Sometimes people prefer protected trust deeds in comparison to DAS (the debt arrangement scheme) because the repayment term might be shorter. On each and every occasion professional and personalised advice is required so that you can confidently make an informed decision which you don’t later regret.
How Do You Go About Starting Trust Deeds?
You’ll need to contact and appoint a trustee. This is an insolvency practitioner who is legally entitled to arrange these debt compromises. There are plenty of good firms out there. There are also a few that seem to get regular poor client feedback and/or charge excessive fees. Two Scottish insolvency practitioner firms that we feel very comfortable about recommending are represented on this site by Kevin & David.
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