What Is a Trust Deed and How Do You Qualify?
WHAT IS A TRUST DEED All too often, people find themselves suddenly overwhelmed with debt that they cannot pay.
It maybe because of a lack of paying attention to one's financial situation, or maybe it's because of unexpected events.
Whatever the case may be, for Scottish residents, obtaining a trust deed may be the best option to managing overwhelming debt.
It is essentially an agreement that is legally binding.
It is between you, the debtor, and an insolvency professional (the trustee).
Incorporated into this agreement is a repayment plan that is manageable, and it is also typically the result of negotiations with your creditors (creditors are not required to sign the trust deed) to ensure that they are paid, but that they are paid in a manner that enables you to survive.
This financial solution can create a repayment plan lasting for approximately three years.
It is based on how much surplus income you have each month that can be put toward tackling your debt.
Trust deeds are a good solution for anyone who has more debt than they can manage.
HOW TO QUALIFY If you find yourself in substantial debt (typically more than 10,000 pounds), applying for a trust deed may be the best solution.
To qualify, you must show that you do not have enough disposable income to repay your debts.
(Disposable income is the money you have once living expenses are deducted).
Typically, someone with at least 10,000 pounds of unpaid debts can qualify.
It is is a legally binding agreement guaranteeing to your creditors that you will pay them a certain amount.
This means that you need to show you have a steady source of income from which you will be able to take and pay on your debt.
It usually takes no more than six weeks for a debtor to obtain the deed.
It really is quite an easy process, and the benefits from obtaining one are well worth it.
ADVANTAGES OF THIS ARRANGEMENT It is essentially a way to work through your insolvency without having to go through the more formal proceedings required with actually claiming bankruptcy.
Regulated by Scotland's Bankruptcy Act of 1985, a trust deed allows someone who is deep in debt to create a manageable payback plan that exists (normally) for only three years.
The advantages to this agreement are many.
For example, once the agreement is signed, creditors are not allowed to bother you.
Your Insolvency Practitioner - the person who sets up the trust deed for you - becomes the go-between for you and the creditors.
Keeping your Insolvency Practitioner up-to-date on all of your financial going-ons is critical in ensuring that you adhere to your trust deed and maintain his trust.
It maybe because of a lack of paying attention to one's financial situation, or maybe it's because of unexpected events.
Whatever the case may be, for Scottish residents, obtaining a trust deed may be the best option to managing overwhelming debt.
It is essentially an agreement that is legally binding.
It is between you, the debtor, and an insolvency professional (the trustee).
Incorporated into this agreement is a repayment plan that is manageable, and it is also typically the result of negotiations with your creditors (creditors are not required to sign the trust deed) to ensure that they are paid, but that they are paid in a manner that enables you to survive.
This financial solution can create a repayment plan lasting for approximately three years.
It is based on how much surplus income you have each month that can be put toward tackling your debt.
Trust deeds are a good solution for anyone who has more debt than they can manage.
HOW TO QUALIFY If you find yourself in substantial debt (typically more than 10,000 pounds), applying for a trust deed may be the best solution.
To qualify, you must show that you do not have enough disposable income to repay your debts.
(Disposable income is the money you have once living expenses are deducted).
Typically, someone with at least 10,000 pounds of unpaid debts can qualify.
It is is a legally binding agreement guaranteeing to your creditors that you will pay them a certain amount.
This means that you need to show you have a steady source of income from which you will be able to take and pay on your debt.
It usually takes no more than six weeks for a debtor to obtain the deed.
It really is quite an easy process, and the benefits from obtaining one are well worth it.
ADVANTAGES OF THIS ARRANGEMENT It is essentially a way to work through your insolvency without having to go through the more formal proceedings required with actually claiming bankruptcy.
Regulated by Scotland's Bankruptcy Act of 1985, a trust deed allows someone who is deep in debt to create a manageable payback plan that exists (normally) for only three years.
The advantages to this agreement are many.
For example, once the agreement is signed, creditors are not allowed to bother you.
Your Insolvency Practitioner - the person who sets up the trust deed for you - becomes the go-between for you and the creditors.
Keeping your Insolvency Practitioner up-to-date on all of your financial going-ons is critical in ensuring that you adhere to your trust deed and maintain his trust.