Sequestration isn't the only solution to those struggling with debts in Scotland. We can offer a trust deed, which could see you debt free in just 3 years, and have interest and charges stopped.
Please see our Trust Deed Questions page for more information, or enquire online to talk to a trained advisor
A Trust Deed is a legal process that is only available to residents of Scotland. A Trust Deed offers debtors an alterative to bankruptcy that allows them to take control of their financial situation.
Until fairly recently bankruptcy had been the only option to most people who were struggling to pay back their debts. The serious implications of bankruptcy on people's present financial state and future ability to obtain credit - or even take on certain employment positions - means that a trust deed is now looked to as a more favourable option.
A Trust Deed is a legal arrangement through the courts where you, with the help of an Insolvency Practitioner (IP), will arrange to make single, regular, and reduced monthly payments towards your debts.
The monthly payments are worked out to ensure that all of your essential bills are paid for first. Your monthly essential outgoings are subtracted from your monthly income, leaving you with your disposable income. The disposable income you are left with is paid to your creditors.
Your Insolvency Practitioner will ask you to provide them with details of all of your outstanding debts in order that they can work out an offer for each party. Each creditor will be offered a different settlement amount depending upon how much you owe them and the nature of the debt. For example, you may have Inland Revenue debts that are lower than what you owe to a credit card company, but the Inland Revenue would normally receive a larger percentage of the debt owed.
Your monthly disposable income, any assets, savings or investments you have will also be taken into consideration when creating an offer for your creditors.
Once two thirds of your creditors have agreed to the proposed arrangement your Trust Deed will become 'Protected'. Protected status means that all the creditors will accept the balance of the trust deed as 'full and final settlement' at the end of the arrangement. It also means that any further interest charges will be frozen and the creditors cannot take any further action against you unless you fail to keep to your monthly payments.
A Trust Deed is usually set over a term of three years, with the remainder of your debts being written off at the end of the arrangement.