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Scottish Trust Deeds FAQ

1. Is It Necessary To Own A Home In Order To Qualify For A Trust Deed?

No.  An agreement of this nature is open to people who own, rent, or live in a home with family or friends.  This is often a big misconception that many people do not understand.

2. If A Creditor Has Already Started Proceedings For Debt Recovery, Can A Person Still Begin This Type Of Agreement?

It will all depend on the timing of the proceedings.  A person will only be unable to enter this form of agreement if a person has already been served with a charge for payment.  This is the last step before bankruptcy, or sequestration. It cannot be overruled by a Trust Deed.  This is why it is important to get to work right away and explore all opportunities before it is too late.

3. Are All Personal Possessions Taken During This Type Of Agreement?

No.  Common personal possessions that are of low value are rarely taken during the terms of the agreement.  This is a great bonus for someone who is trying to escape bankruptcy.

4. How Long Does This Kind Of Agreement Last?

An agreement of this nature will normally last for three years.

5. What Occurs When a Person Does Not Like The Chosen Trustee?

In the beginning, it is important to share concerns about Trustees directly to the person.  If the response is less than satisfactory, it may be necessary to take the matter up with the Trustee's professional body.  If a person is still not satisfied, it may be necessary to contact the Accountant In Bankruptcy.  This is the highest level of appeal.  However, ti rarely gets this serious.

6. What Kind Of Commitment Is Necessary When Signing A Trust Deed?

Since a Trust Deed is legally binding, there is a certain level of commitment that has been made between the trustee and creditors.  A person agrees to contribute money toward outstanding debt.  When a person does not cooperate with the agreement, there is a serious breach in agreement.  The trustee can choose numerous ways to deal with this insubordination.  Hopefully, a person will be smart enough to abide by the terms of the agreement without hassle.

7. Does A Person Need To Sell A Car With This Agreement?

When a person has a great need to own a car, especially in order to get to work, a person will be able to keep the car.  However, the value must be deemed reasonable.  If a person owns an expensive car, it may be necessary to discuss other arrangements in advance of beginning the application process.  Often times, a person will need to sell an expensive car and buy a more reasonably priced model.

8. What Does It Mean When A Trust Deed Becomes Protected?

After the agreement has reached the creditors with the full details of the proposed plan, they will have the chance to reject or accept the proposal.  When only a few creditors object, the agreement will be protected.  This means that all creditors must abide by the terms of the agreement no matter what and no one can begin any new recovery action.

9. Who Is Responsible For the Fees Charged By The Scottish Trust Deed Firms?

The fees are established at the beginning of the agreement.  The fees are taken from the money that has been contributed.

10.  When Is It Best For A Person To Consider A Trust Deed as A Debt Solution?

In general terms, a Trust Deed will be a smart decision for a person's debt problems when certain assets or disposable income exists.  This will help a person pay part of the debt that is owed to creditors.  However, the level of assets or income must be less than enough to pay the full amount in the upcoming future.

11. Does the Government Approve Scottish Trust Deeds As Debt Solutions?

This agreement is not necessarily thought to be backed by the government. However, it is involved with the government's insolvency legislation and are an available debt solution to many people.

12. Is A Credit Rating Affected By A Scottish Trust Deed?

Yes.  This agreement will significantly affect a credit rating.  In fact, the details will stay on a credit report for up to six years. This is definitely something that needs to be considered before the process begins.

13. How Does A Trust Deed Really Work?

In loose terms, a Trust Deed agreement is meant to help a person who owes a great amount of money. Instead of conducting personal business, a person transfers some assets to a trustee.  This person is responsible for selling and managing the amount of money that is raised.  Creditors no longer communicate on a personal level.  This Trustee distributes the money to the creditors and is the only person who contacts these creditors.  The Trustee is also the person who sets up an suitable arrangement for payback.  This can eliminate a great amount of headaches.

14. Are There Other Solutions For Debt Management?

Each person's circumstances will dictate the possible solutions to help end debt.  Some people decide to declare bankruptcy, LILA sequestration, or other Debt Management Plans.  It is possible to learn more about these alternatives on the main menu of this website.

15. Is It Possible For A Person To Enter A Trust Deed If There Is Already An Outstanding CCJ?

Yes.  Even if a CCJ exists, a person is not excluded from the opportunity from beginning a Trust Deed.

16. What Debts Get Included in A Scottish Trust Deed?

A Person must include unsecured debts.  This usually includes bank loans, credit cards, and any other common debt.  It does not include secured debts like home loans or hired purchases.  It is important for a person to continue to pay secured debts until they are completely finished. Student loans do not qualify for this type of agreement.

17. How Much Debt Is Necessary To Enter Into This Type Of Agreement?

Actually, there is no minimum amount of debt necessary.  Each company will vary on a particular minimum that is necessary to begin the case.

18. Is A Trust Deed Considered A Legal Procedure?

Even though this type of agreement is legally binding, it is not part of the legal process that is similar to a sequestration.

19. Will A Person Be Completely Free of Debt At The End Of The Agreement?

After a person has included all unsecured debt in the Scottish Trust Deed, have no other debt, and have completed the commitment to the agreement, a person will be totally free from unsecured debt.  It is important to note that the agreement does not include secured debt.  This includes hire purchase agreements or mortgage payments.

20. Does A Person Lose The Home Through A Protected Trust Deed?

If a person meets the commitments of the Trust Deed, the home will not be taken away.  A Trust Deed is chosen by a homeowner in place of bankruptcy because it does not always mean that the home will be lost. It is highly recommended that a homeowner gets written backup regarding the equity that is held in the home before signing any agreements.  This will avoid many headaches down the line.

21. Is There Court Involvement During A Trust Deed?

No.  The courts are not involved with the Trust Deed process.

22.  What is The Length Of Time That A Trust Deed Will Last?

Normally, a Trust Deed lasts three years.  This is true when a person cooperates with the terms that have been established by the trustee and terms of the agreement.  However, certain people will be able to complete this agreement in less time.

23. When  person moves from the UK, but still has debt with UK creditors, is a Trust Deed Possible?

If a person has lived in Scotland for the last year, a Trust Deed is a viable option.

24. How Long Will It Take To Establish A Trust Deed?

Under normal circumstances, it usually takes six weeks to begin a Protected Trust Deed.  This may vary according to individual situations.

25. Can A Person Settle Debts For Less Than Is Owed Using A Trust Deed?

Yes.  The amount of money that is paid to creditors will depend on the funds that get collected throughout the process of the Trust Deed.  This depends on the monthly disposable income and assets that are available.

26. What Occurs When Personal Circumstances Change During This Process?

If a person's financial circumstances change during the process, it is required to raise payment amounts.  On the other hand, if matter get worse, it may be possible to lower or stop payments.  This is the only thing that keeps things fair to both the creditors and the people who owe debt.

 

Do I Qualify For Trust Deed?

Answer a few simple questions on the form above and our system will see if you qualify to write off up to 90% of what you cannot afford to repay.

Do I Qualify?

Totally Debt Free In 4 Years!

A typical Trust Deed arrangement will last for 4 years (unlike an IVA which is 5 years) meaning you will be back on your feet with your finances faster!.

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