If you live in Scotland and are struggling with your finances and need to know more about a trust deed or any other debt solutions, then this article is for you.
There are debt advisers available who will be able to explain more and while a trust deed may not be for you, there are other debt solutions available.
Essentially, a trust deed is an arrangement between you and your creditors, that is the people you owe money to, and it’s a legally binding agreement.
The aim of a trust deed is to pass your property and assets to a trustee who will then manage your financial affairs and aiming to repay creditors as much as they possibly can.
It’s important to appreciate that when your trust deed becomes protected then your creditors will no longer be able to take action against you, for example taking you to court or trying to make you bankrupt.
However, among the criteria for being accepted for a trust deed is the need for you to have at least £5,000 worth of debt.
You will also need to make regular repayments for paying down your debt over the next four years.
Why bother with a trust deed?
So, why bother with a trust deed if it takes so long to repay your creditors?
The simple answer is that after four years, and in some cases it can be three years, if you keep up with your trust deed obligations then you will be discharged and the amount of debt that remains will be written off.
The helpful team at Scotland’s Trust Deed will have more information about whether this debt solution is for you and whether you will be able to apply for it. Their advice will be impartial and confidential.
Another potential debt solution for people living in Scotland is the debt arrangement scheme, which was created by the Scottish government.
The aim of the scheme is to help Scots manage their debts effectively.
Again, there is a need to apply and have your application approved so you make one regular repayment to a distributor who then shares the money between your creditors.
Application for a debt arrangement scheme
It’s important to appreciate that an approved money adviser will be needed to make the application for a debt arrangement scheme on your behalf; you cannot apply directly.
For more help and information about the debt arrangement scheme, speak with the Scotland’s Trust Deed team.
There’s also the opportunity of a sequestration, or bankruptcy, for people living in Scotland.
Bankruptcy may appeal if you have no money remaining after your bills have been met to repay debts or you’re living on so little that it will take many years for you to repay creditors under the current arrangements.
Also, creditors can apply to have you sequestrated but it’s important to seek proper debt advice from professionals before you consider pursuing this course of action.
Scots who are struggling with debts
For those Scots who are struggling with debts, and who do not want to concern themselves with legal arrangements such as a trust deed or a debt arrangement scheme, then there are other ways to repay their debts.
If you have money remaining at the end of the month then you’ll need to tackle urgent debts first. There’s no doubt that some debts will be more urgent since they have serious consequences for non-repayment.
For example, not paying your mortgage on time could lead to your home being repossessed by the bank or building society.
You can also contact creditors yourself to negotiate a new repayment deal or discuss a loan consolidation with a lender.
Whichever route you want to take to a debt-free life, and you live in Scotland, then you should contact Scotland’s Trust Deed and speak with their friendly team of debt advisers who can offer impartial advice about what debt solution routes may be available to you.