Trust Deed serves As the Best Go-To Option for People in debt
A Trust Deed is a debt solution in Scotland to help its people facing severe debt problems. In this solution, the debtor is given an opportunity to repay a proportion of the pending debt over a period of time, which, in most cases is 36 months. In this process, a loan repayment deal is made between the debtor and the creditors. The debtor is given a chance to repay the existing loans in the best of his repayment capacity while maintaining a moderate lifestyle.
A Trust Deed is beneficial to both the concerned parties (debtor and creditor), as the debtor gets an opportunity to repay his loan in a better manner and avoid bankruptcy, at the same time, the creditor gets a better repayment as compared to the other situation where the debtor declares bankruptcy. One must know that Trust Deed can be of help only when you are facing repayment of unsecured loans. For your secured loans, this solution is not helpful.
If you feel that you are not in a financial position to repay your unsecured loans and need a Trust Deed made, the first thing that you should do is approaching a licensed and expert debt advisory agency like Debt Advisory Scotland. Your agency will assign a professional Insolvency Practitioner who will study your case and work as your trustee. He will study all the details regarding your income and your essential monthly expenditure, and based on this he will prepare a repayment offer plan. He will then contact your creditors and seek their approval. They have a choice to approve or reject the offer. If more than half of your creditors accept the offer, and if the debt amount of those who have raised objection to the deed is less than one third of the total debt amount, then your Trust Deed is considered as approved. After this, you start repaying your debts as per the agreement through your trustee. On successful completion of the agreement, your remaining debts are considered as paid and you become debt free.
People in Scotland find this a better solution to deal with their debt problems than declaring themselves bankrupt. Because in bankruptcy you lose nearly all your assets, like your property, car and all other valuable assets. Plus, bankruptcy affects your credit ratings worse than a trust deed. Scottish Trust Deeds serve its citizens to avoid bankruptcy and to repay their debts in a manageable way without having to lose their home and other assets.
There are many debt advisories working in Scotland. They have expert financial advisors who work with you and become your trustees. If you want to get more information in this regard, you may contact Debt Advisory Scotland.