Scottish Trust Deeds A Reasonable Solution for Your Bad Debts

If you are a resident of Scotland and on the verge of bankruptcy, then you can bail yourself out from the situation by resorting to Scottish Trust Deeds. A Trust Deed is typically a process by which a debtor who is in a hopeless position and unable to clear off his debts enters into an agreement with his creditors to pay a single fixed amount every month for a certain specified time period which usually ends after 3 years. At the end of this 3 year period, the remaining unpaid debts are agreed to be written off. Such an agreement or Trust Deed is under the supervision of a licensed insolvency practitioner called Trustee who acts as a via media between the debtor and creditor and all communication and negotiations are carried out by such Trustee.

Scottish Trust Deeds are legally binding. However, such a deed covers only your unsecured debts and not your secured ones. Also if creditors representing over 33% of the total debt value oppose to the arrangement in writing within 5 weeks of receiving the proposal, then the Trust Deed fails to take off. But once the Trust Deed is accepted by the creditors and becomes operational, then the debtor is protected from the creditor from any further claims or dues. On the other hand if the debtor stops making the monthly payment as per the agreement, the Trustee can exercise his jurisdiction to freeze his bank account and even apply for his bankruptcy.

The debtor transfers his assets to the Trustee for managing the cost of maintaining the deed. If he does not possess any assets or his assets are insufficient then the earnings of the debtor are also transferred to the Trustee. A certain minimum amount is required to be transferred to the Trustee and if this is not done, then the deed does not get a protective status.

When Scottish Trust Deeds come into effect, it ideally means agreeing to cooperate with the Trustees and pay an agreed monthly contribution. It also means reducing your stress levels as there is no further pressure from the creditors to pay up claims and dues. The deed also gives the debtor the right to remain in service including continuing to serve as a director of any company or carry on his business normally or continue to be in public office.

If you are a resident of Scotland and on the verge of bankruptcy, then you can bail yourself out from the situation by resorting to Scottish Trust Deeds. A Trust Deed is typically a process by which a debtor who is in a hopeless position and unable to clear off his debts enters into an agreement with his creditors to pay a single fixed amount every month for a certain specified time period which usually ends after 3 years. At the end of this 3 year period, the remaining unpaid debts are agreed to be written off. Such an agreement or Trust Deed is under the supervision of a licensed insolvency practitioner called Trustee who acts as a via media between the debtor and creditor and all communication and negotiations are carried out by such Trustee.

Scottish Trust Deeds are legally binding. However, such a deed covers only your unsecured debts and not your secured ones. Also if creditors representing over 33% of the total debt value oppose to the arrangement in writing within 5 weeks of receiving the proposal, then the Trust Deed fails to take off. But once the Trust Deed is accepted by the creditors and becomes operational, then the debtor is protected from the creditor from any further claims or dues. On the other hand if the debtor stops making the monthly payment as per the agreement, the Trustee can exercise his jurisdiction to freeze his bank account and even apply for his bankruptcy.

The debtor transfers his assets to the Trustee for managing the cost of maintaining the deed. If he does not possess any assets or his assets are insufficient then the earnings of the debtor are also transferred to the Trustee. A certain minimum amount is required to be transferred to the Trustee and if this is not done, then the deed does not get a protective status.

When Scottish Trust Deeds come into effect, it ideally means agreeing to cooperate with the Trustees and pay an agreed monthly contribution. It also means reducing your stress levels as there is no further pressure from the creditors to pay up claims and dues. The deed also gives the debtor the right to remain in service including continuing to serve as a director of any company or carry on his business normally or continue to be in public office.