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Trust Deeds Versus Sequestration

When a person is facing sequestration, creditors may be behaving badly and forcing a person to experience stress and pressure.

An individual may have spent a great amount of time trying to uncover the best solution for overwhelming debt.  A Trust Deed Scotland may be considered, but it may be difficult to take action.

A person may feel vulnerable and suffering from a variety of emotions.  Fear, frustration, and anger may be just a few feelings that are clouding judgment.  A person may be hoping to find the right answer to overcome a loss of confidence that has been left behind by financial difficulty.  Even though a person may feel resentment over losing control there are ways that may help.

At the most desperate times, a person may want to give up and enter sequestration.

However, a majority of people do not use this path as an escape.  Some people persevere and raise the pride that remains within.  Most people do not want to enter the sequestration process.  Even though it can erase the problem, individuals feel that there is a better way to solve the problem.  It is a fact that things can be resolved in a better manner.  This is where a Trust Deed comes into place.

Defeat is never the right decision. Giving up all pride and entering into sequestration is not always the answer. There are certain advantages that come with a Trust Deed.

Benefits Of A Trust Deed Scotland
The biggest benefit of this arrangement is that creditors are not allowed to make contact.

Creditors cannot badger a person to pay money if a Protected Trust Deed is in place.  The only form of communication can only take place with an Insolvency Practitioner.  This will lessen a great deal of stress from the situation.  With sequestration, this is not the case.  A creditor can still demand payment up to the time of sequestration.  Certain individuals have stated that creditors may resort to trickery, even when sequestration is in place.

There is no stigma attached.  Trust Deeds are considered much less negative than a sequestration. This is a major reason why the aib has reported a drop in sequestration. There is also only a small chance that anyone will find out about a Trust Deed.  Even if it is uncovered, it can be simply explained away. 

Restore Confidence and Self Esteem
When a person enters sequestration, it can greatly lower self esteem. It can lead to guilt and a low feeling for a long time.  On the other hand, a Trust Deed can help to rebuild confidence and help a person gain better control over personal financial responsibility.

Skills For Financial Management
The process of sequestration will not help a person correct poor financial habits that have contributed to debt.  This means that there will be a possibility of recreating the same mistakes and entering a vicious circle of never ending debt.  A Trust Deed will help a person to learn a better way to budget money and live within means.  This will give a solid foundation that will be a good place to build a financial future.

Protect A Career With A Trust Deed
When a person has a certain job, sequestration may be forbidden.  For example, when a person has a job that deals with financial matters or holds a public office, it may be impossible to enter this process.  A Trust Deed is less risky and may help a person keep a career in the previously mentioned fields. 

Negatives That Are Associated With A Trust Deed
Even though a Trust Deed can be helpful, it may have certain disadvantages.  It is essential to understand all of the issues that surround any financial product.  This will help a person make the best decision possible.

The Length Of The Agreement
This agreement make take a few years to pay off. A person will need to make payments for up to three years after the contract has been approved.  A person cannot reestablish credit until the payment plan has been completed and discharged. 

Sequestration is much quicker.  A person may be free from debt in a matter of weeks instead of years.  This means that it will be easier to concentrate on rebuilding credit.

The Effects On Credit Ratings
A person's credit rating will be negatively affected by Trust Deeds. However, this may also be true for sequestration as well.

Property May Need To Be Sold
Part of the process of applying for Trust Deeds is that an Insolvency Practitioner is entrusted with assets for valuation.  Property fits into these assets, especially if there is equity in the property.  It may be necessary to remortgage the property at the start and finish of the process in order to release equity to creditors.  Many people find that selling is one of the few ways to achieve the large amount of money that will be needed to pay off lenders.  It may be possible for family members to pay this sum, but may be unlikely.  Many people do not have the resources to receive an advance on inheritance. 

If there is no equity in the property, nothing can be released.  However, an IP has the ability to sell the property for up to three years after sequestration.

Even though this may seem bad, there is more flexibility allowed in a Trust Deed than in the sequestration process.  During sequestration, a person will almost definitely need to remortgage or sell property to pay creditors.

Sequestration may be one way to erase debt, but there may be better ways around the situation.  Money can be a touchy subject.  Many people place pride in financial matters.  Being able to manage money may be over after a person enters sequestration.  This can lead to a lifelong battle.

 

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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