Monday, 12 December 2011

Effective Way To Get Debt Help

For people living in Scotland there is a debt solution available to them called a Trust Deed. This is the Scottish equivalent of an Individual Voluntary Arrangement (IVA) It is typically used where you have debts over £10,000.A Trust Deed is regulated by The Bankruptcy (Scotland) Act 1985.

A Trust Deed has the benefit of helping the person using this solution to pay off their debts at an affordable level over a period of typically 3yrs. A trustee is appointed to look after both the person in the trust deed and also the creditors.
An insolvency practitioner (IP) would carry out a complete income and expenditure to establish a true and accurate statement of affairs .This is done in order to calculate what can reasonably be paid towards the debts. The Trust Deed is thereafter presented by the IP to the creditors for their approval.

Two thirds of the creditors must agree to the Trust Deed for it to be accepted and become legally binding. A protected Trust Deed ensures that creditors must stop all interest and charges as well as telephone calls and letters etc and best of all they cannot enforce their debt further.

What is the Benefits of a Trust Deed

When the Trust Deed has been approved it means that all interest payments and charges become frozen relating to your unsecured debts and no other fees can be added by your creditors. This helps to ensure your debts are kept to a minimum for the duration of the Trust Deed.

The duration of a Trust Deed is usually completed in 3 years after which all outstanding debt would be written off. Many people during this period take time to reflect on why their finances became so unmanageable in order to ensure they avoid making the same errors again once they have completed the protected trust deed.
One major benefit with a Trust Deed is that (unlike bankruptcy) it is not made public therefore you can keep this information private and no one will know you have entered the solution, which on some lines of employment will ensure you keep your job. Some employers are less than sympathetic to your debt problems.

Another benefit to remember when entering a Trust Deed is that your Insolvency Practitioner deals with the whole process on your behalf. They will deal with all correspondence with creditors, thus removing a lot of stress associated with resolving your financial problems.

Once the Trust Deed has been approved and all arrangements are in place you will only make one single monthly payment towards your debt.

A Trust Deed can be an effective way to resolve serious debt problems, however you should always seek advice from a free debt counselling service to receive all information you require to make an informed decision .


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