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Trust Deeds

A Trust deed is the Scottish equivalent of an Individual Voluntary Arrangements (IVA) utilized in England and Wales. It is a way for people to pay their debts in the longer term rather than face legal action. It is a legally binding agreement between the person that owes the money and any creditors.

It involves an intermediary known as an Insolvency Practitioner who is in effect the trustee, who works with both the person who owes the debt, and the creditors who are trying to recover their money. A trust deed is usually used as a way of avoiding bankruptcy proceedings.

The person that owns the money will need to provide the trustee with a complete breakdown of what is owed to every one of their creditors. The trustee will then produce a financial proposal, which he will present to both the individual in debt and the creditors. Often the trust deed will be legally bound as “protected”. A protected agreement means that the creditors may no longer pursue the debtor for recovery of the debts.

In addition there will be no extra interest added to the outstanding amounts. The arrangement is a private one, and no information regarding the trust deed is made public. In return the creditors will have the right to a charge on any equity there may be in your home. Meaning that when you sell it, or it is otherwise transferred, the debts will have two be paid to the creditors.

Often these arrangements may go hand-in-hand with a debt management plan; this relieves the immediate pressure from the person in debt, but allows them to make payments on their debt over a longer period of time, without the burden of additional interest.

This can be a very viable option for both sides, allowing the person in debt a large amount of peace of mind, and breathing space to pay off their loan over time, or when they sell their home. The creditors benefit by having security and the knowledge that they will eventually receive their debt payment.

Trust Deeds news

Debt help Scotland | debt advice Scotland

More people could be seeking debt help in Scotland after news from a leading source showing that a large proportion of Scottish residents chose to pay for their Christmas presents using credit cards.

Scottish bankruptcies all time high

The Insolvency Service has reported thank people in Scotland are going bankrupt at a faster rate than previously thought of. According to the Insolvency Service they say in the last twelve months bankruptcies have gone up by one third.

Debt Advice in Scotland

Citizens Advice Scotland told all about the increase they’ve seen in debt advice this year compared to last year (2008 – 2009) – apparently they’ve seen as much as a fourteen percent rise of Scottish inhabitants who have gone to the CAS for advice with their debts.

Glasgow bankruptcies all time high

In the last 6 months Scotland figures show bankruptcies have gone up considerably. One hundred and twenty eight percent in fact.

Economic downturn option for Scottish in debt

Of the 98% of Scots affected by the recession there are less of them that have ‘profited’ or made better by the situation compared to England and Wales.

Debt Management in Scotland

The Scots are not sheltered from the recession hitting everyone hard in the pocket. Even though the Scottish are fondly referred to as thrifty, they are generous with their money. A large portion of Scottish people have chosen trust deeds or declared bankruptcy recently though.

Trust Deeds – Scottish Bankruptcies Rise

In January, February and March 2009 there were over six thousand scots declaring themselves bankrupt or opting for a protected trust deed. Scottish personal insolvencies are continuing to rise too.

SNP Bankruptcy claims

James Dornan last night stood down after it was leaked he was an “undischarged bankrupt” while running a couple of charities.

If found guilty of being a charity trustee, he could end up in prison for two years.

Trust Deeds for those facing bankruptcy or insolvency

Its pretty obvious that anyone in debt before the recession is even more affected now. The government assures us it will be ok and that it will pass. You can’t help but avoid the fact that it has left devastation in the form of repossesions, redundancies, bankruptcies and more.. 

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