Do you live in Scotland? Are you in debt? If you are, then you might want to consider getting a Scottish trust deed. If you do not know much about this, and want to learn more, then continue to read the rest of this article. It will explain what it is and how they work.
Trust Deed Scotland: What Is It
A trust deed is an agreement that is voluntary. If you were to enter into such an agreement, then it would be between you (the debtor) and your creditors. Basically, it is a way for you to help you and other Scots repay their debts. It is an alternative to bankruptcy, but there are a few things you should know about this type of agreement, such as how they work. The next section will explain that, as well as provide you with other useful information.
How Do They Work
In order to get a trust deed, you need to qualify for one. If you live in Scotland, then you already meet one of the most important requirements. If you were told by a professional that you do qualify for a deed, the next step is to find a firm that can handle the process for you. The site trustdeeds.net can offer you excellent advice.
Once you have found a firm you want to do business with, the next thing you will do is have your financial circumstances confirmed. Other details may be collected from you, and eventually you will be presented with documentation, or the agreement. You will need to sign the agreement, and you will be legally committed to the terms of it.
The firm you are using will send your creditors the proposal and they will have some time to either agree to the proposal or reject it.
If your creditors accept your proposal, you will need to make a minimum payment every single month, on a date that you have agreed on. It is important to note that if you default on your agreement, the chances are you will be forced to file bankruptcy or figure something else out because the terms of the agreement will likely become void. It is very important to make your payments on time.
The Pros And Cons
There are some pros and cons you should be aware of. Some of the pros worth mentioning are as followed:
1. Length Of The Program-
When you enter into the agreement, you will usually be given a few years to pay your debt off.
2. Lower Payments-
If you try to pay your debt off on your own, without a deed, you could end up making a high payment to numerous creditors. However, when you have a Scottish trust deed, the payment you have to make will be an affordable one, and you could be debt free within a few years.
3. Prevent Legal Action Against You-
If you abide by the terms of the agreement, your creditors will not be able to take legal action against you. Just make your payments and you will be fine.
As for the cons, some of the cons you should be aware of are:
1. Bankruptcy Is Likely If You’re Default-
If you default on the agreement, you could be forced to file bankruptcy. As you can see, there are more pros than cons, and getting a deed is one of the best ways to become debt free. Visit trustdeeds.net and find out more information about obtaining a deed.
IVA's are individual voluntary arrangements and is an alternative to bankruptcy; especially for those who live in the United Kingdom. Keep in mind, this debt option was first established by the Insolvency Act of 1986 and is known as a formal repayment proposal.
This process begins by first discussing your circumstances with an adviser to see if this choice is the right debt solution for you. In most cases, other alternatives are discussed with you at that time. Then, once you have decided to proceed with this debt solution, you will discuss with your adviser on how much you can pay each month into this arrangement. Keep in mind, you will also need to give some documentation to your adviser such as a driving license or passport, a recent utility bill, details of your creditors, three recent monthly bank statements, a mortgage redemption statement, the original credit agreement on a car you own, and possibly other documents.
Next, you and your adviser will put together your IVA proposal so that it can be presented to your creditors. Be careful not to be pressured into making payments you can't afford. Once you feel satisfied with your proposal, a meeting with the creditors will be made and then your proposal will be sent to your creditors for them to consider.
The next step is the voting and modifications. Keep in mind that creditors may vote in advance of the meeting date. They can accept or reject your proposal; that is their choice. Modifications may also be needed and you will need 75 percent of your creditors to vote in favour of your proposal before it is approved.
Then, once it is approved, a Chairman's report will be made. This will include information on the meeting, how the creditors voted and any modifications that were made to your IVA. If your IVA is not approved, other options will be discussed such as bankruptcy or a debt management plan. Once your application and form have been approved, your monthly contributions will be put into a client bank account in your name. Keep in mind, any fees associated with your IVA will be withdrawn from the money paid into this account before any money is paid to creditors.
Then, every year there will be an annual review to see if or how your circumstances have changed. Such changes might be an increase in salary or an increase in any bills that you have obtained. If there has been a noticeable increase in your salary, you will probably have to increase your contributions.
Most importantly, if you are unable at any point to make your monthly contribution, you need to contact your company quickly to see what you need to do next. If you do not contact your company and continue to miss payments you risk the demise of your IVA.
There are various benefits with his option such as lasting up to five years, finding peace of mind from your creditors, finding a drop in interest and late payment charges and enjoying the fact that there is no adverse effect on your status as a debtor. Keep in mind that if you choose bankruptcy, there are restrictions on certain employees such as those who work as accountants.
Most importantly, as long as you adhere to the terms of the IVA, your creditors cannot interfere with the process. It is important to note, too, that IVA's are safe and reliable; as long as you follow the terms of the agreement. An IVA register is required.
Other benefits are protecting you against legal action. To be clear, this is a legally binding agreement and once it is in place, your creditors will have no right to take legal action against you. In addition, your creditors are not allowed to speak with you. They can only communicate with your practitioner. One disadvantage with IVA is that you can't cancel your IVA. Check out IVA companies soon. Find the peace you deserve.
To conclude, for some this is an option that many like because it protects them from bankruptcy. Apply for an IVA today! Find out how this process can help you.