www.trustdeedscotland.info will be launching a new site shortly filled with everything you need to know when you are in debt and need help in Scotland.
What is a Trust Deed?
With the current financial crisis, it is hard for some people to get out of debt. People who lose their jobs may find themselves in a financial bind. In order to repay their debts, it is important to make use of various helpful government programs such as Scottish trust deeds.
For people in Scotland with bad debts, there is a way out of the situation that allow them to repair credit standing called a trust deed. The Scottish trust deed is program by the government which helps people get rid of their debts. In this arrangement, the real property of the debtor is transferred to a trustee who will deal with the creditors.
Trust deed Scotland is for people who have exhausted all means to pay off debts but still find themselves in debt. When a debtor enters into the trust deeds Scotland agreement, he is required to pay a fix amount for a period usually three years. If he faithfully pays the agreed amount within three years, the remaining debt will be written off after three years.
The trust deed is supervised formally by a licensed insolvency practitioner called a Trustee. The Trustee will ensure that the debtor makes payments to the creditor monthly. He also mediates between the creditor and debtor while the agreement is in place. All negotiations between the two parties are initiated by the Trustee.
Trust deeds Scotland agreement is legally binding. However, the said arrangement is only limited to unsecured loans or debts such as credit cards, store cards and other unsecured lines of credit. Secured loans of the debtor will not be part of the agreement. If a third of the creditors will oppose the proposed arrangement of the debtor in writing with five weeks of receiving the proposal, the said trust deed Scotland arrangement will not push through.
If the creditor accepts the proposed payment arrangement, then the debtor is protected from any actions by the creditor. If the debtor does not have assets to transfer to the Trustee, then his salary will be the one transferred. There is a minimum amount of earnings required to be able to qualify for the Scottish trust deed arrangement. If the debtor does not meet the minimum amount then he might not be able to avail of trust deeds.
Scottish trust deeds are usually in place six weeks after the agreement is accepted by the creditors. The debtor will receive one bill each month that needs to be paid. If he fails to pay the said monthly bill, the Trustee may freeze his bank account or apply for bankruptcy in the debtor’s behalf.
Once the debtor pays off the debts in three years’ time, the credit rating may not go up within six years. After six years, the unpaid debts will no longer show in the credit standing. If the debtor pays regularly and promptly, he is allowed to go into other credit arrangements while still under the Scottish trust deed arrangement. He is also allowed to stay self-employed or stay employed by companies.