Months of stress and anxiety in relation to your debts will lead to a feeling of desperation. The team at Scotland’s Trust Deed have years of helping people in financial trouble and know the emotional toll it can take. Eventually, there will come a time to take control and resolve the problem and a decision needs to be made.
Sequestration (or bankruptcy as most people call it) and a Scottish Trust Deed are both options to consider and it’s important to understand the advantages and disadvantages of both.
A Scottish Trust Deed versus Sequestration
Sequestration feels as though you have lost control and given up trying to fix the problem. Scotland’s Trust Deed will help you find a solution and develop a considered plan. This will build self-confidence rather than embarrassment.
Once creditors realise your intention to go through either a Sequestration or the Trust Deed process they will increase their efforts to get money out of you by whichever means possible. With sequestration, they can be harassing you throughout the day and night right up until the moment of your bankruptcy, sometimes after. This is, of course, the last thing you need at an already stressful time. With a Protected Trust Deed, your creditors are not allowed to chase you for money directly. Communication and negotiation will be expertly handled by a Scotland’s Trust Deed Insolvency Practitioner.
A sense of purpose
A Trust Deed will develop your budgeting skills and confidence in yourself to make good financial decisions. Sequestration may be a fresh start but a Trust Deed will educate so that the same mistakes aren’t made again.
Sequestration carries a stigma which many people will do anything to avoid, including not dealing with their financial issues at all. Scotland’s Trust Deed operates a discreet service and there is no reason why anyone would find out. Even if they did discover the truth, there is no shame in taking responsibility for your finances and organising a loan repayment plan.
Your home and job
A Trust Deed will still put your home at risk but there is flexibility and Scotland’s Trust Deed will help you do everything possible to prevent it. Sequestration may require your home to be sold to release the equity and there is little to be done to prevent that from happening. If your job is within a public office or is a position with financial power, then sequestration could lead to you losing your job. A Trust Deed carries no such threat.
The speed with which you can be debt free and on your way to re-building a sound credit history is a huge positive for sequestration. A Trust Deed payment plan will last for four years and only then can you begin to work towards a good credit score.
Your credit score
Your ability to gain credit will be damaged by a Trust Deed. Phone contracts and car finance will become challenging to obtain. The same is true for sequestration however and it can, in fact, have an even more adverse effect.
If you would like to know more about sequestration or a Scottish Trust Deed, then it’s time to contact the helpful debt advisors at Scotland’s Trust Deed today.