Scottish Trust Deeds

Advice On Scottish Trust Deeds

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Advice On Using An IVA (for residents of England, Wales and Northern Ireland)

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Advice On Using A Scottish Trust Deed

Debt is a big problem around the world. Many people in Scotland land in serious debt and do not know where to turn. If you are one of these people you may want to consider Scottish trust deeds as a way out. There are two types of Scottish trust deeds that you can apply for. They are the unprotected trust deed and the protected trust. Most people will go for the protected trust deed.

What Are Scottish Trust Deeds?

Trust deeds allow people in Scotland a way out of their debt problems without going bankrupt. It is an agreement you make in which you will transfer your assets to a trustee who will in turn sell the assets to pay off your debt. A trustee must be a licensed insolvency practitioner. Household items that are essential to your life cannot be taken from you, but you may have to sell your home and vehicle to pay your debts.

You also may have to pay some of the money you earn in order to pay your debts. It is important to make Scottish trust deeds pleasing to your creditors too. They must accept the terms of one of these agreements if they are to leave you alone and not force a sequestration (bankruptcy) on you.

Once an agreement is made up you do not have to bother with your creditors any longer. The trustee that you hire will deal with them from then on.

Protected Scottish Trust Deed

There are benefits to having Scottish trust deeds protected. Once it becomes protected your creditors will no longer be able to bother you about the money you owe. This includes any creditors who objected to the trust deed.

An article must be published in the Edinburgh Gazette in order to make this agreement protected. The notice or article must be sent to all of your creditors. The creditors then have five weeks to object to the agreement. They can force a bankruptcy on you as long as it is in the five week period, but this happens very rarely. Most creditors will accept a protected trust deed since they are going to get some of what is owed to them.

If by chance a majority of your creditors do object, the Scottish trust deed will not become protected. In this case you may have to file to have yourself sequestrated or made bankrupt. Your creditors can also try to have a sequestration forced on you if they believe they will get more money out of you that way.

Since these agreements are posted in the Edinburgh Gazette you can expect to have bad credit for the duration of the agreement. It will be very difficult to purchase anything on credit. Besides being in the Gazette it will also be posted in the Register of Insolvencies. You may also find that you can lose your job in some cases due to one of these agreements. A director of a company could lose their position or be stopped by the company from filing a Scottish trust deed. Some public office positions are also hard to keep with this agreement.

After A Trust Deed Is Complete

You will not get your property back once a trust deed is finished. You have to remember your property and other assets were sold to get the money to pay your creditors. If there is money left over after paying off the debts that money will be returned to you. This agreement generally takes three years to complete. There are times when it can run up to five years, however. After this agreement is complete your credit can return to normal and you can get a fresh start. It will not affect your credit as long as a bankruptcy would.

Bankruptcy

You may have to go bankrupt if you cannot get a protected Scottish trust deed. No one wants to have a sequestration on their credit but sometimes it is necessary to get out from under the debt your find yourself in. Your creditors have the right to force this on you too if they believe they can get more of their money out of you in this way. You will lose many of your assets in a bankruptcy as well, but your credit will be affected for a much longer period of time.

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