If you live in Scotland and are struggling to repay unsecured debts, a Trust Deed might well be the solution to debt worries.
What are Trust Deeds?
A Scottish Trust Deed is essentially an agreement between a debtor and his or her creditors. It’s a legally binding agreement and is made with the help of a Licensed Insolvency Practitioner, known as a Trustee.
Essentially, a Trustee will put together a repayment proposal for your creditors, based on what you income and your assets would realistically allow you to afford. The repayment period is agreed to run over a set period of time, most commonly three years, at the end of which your debts are considered to have been settled in full.
Once the Trust Deed has been ‘protected,’ your creditors can are legally bound to it and can no longer contact you.
Am I Eligible for a Trust Deed?
In order to be eligible for a Scottish Trust Deed, you must be resident in Scotland. It’s also worth noting that only unsecured debts can be included in Trust Deeds (that is to say no debts that are secured against your property, such as your mortgage). There is no minimum or maximum debt amount specified. Each application is instead looked at individually based on the applicant’s personal circumstances.
Get in touch today to find out whether you could be eligible for a Scottish Trust Deed.
Struggling with debt but not a resident of Scotland? Find out more about the IVA.
