A protected trust deed of Scotland is basically a legally binding arrangement between a debtor and his creditors that lasts for a time period of 4 years. Although, it is a legal agreement and it can be carried out only by a licensed insolvency practitioner, whose role will be confined in the deed as the trustee. This deed is only applicable for the people of Scotland. To get more information about this trust deed, you can check out this link www.DebtAdvisoryScotland.net.
A Scottish trust deed helps to reduce the payable amount to creditors and helps decide the monthly payment to the trustee. Moreover, it also provides protection from the creditors taking legal action against you and thereby protects your home and car from possession.
What are the advantages associated with Scottish trust deed?
The advantages associated with Scottish trust deed are as follows –
- Payments are made based on your current financial situation and circumstances.
- Your trustee or the debt advisor will contact your creditors on your behalf and set you free from unwanted calls and letters.
- All administration related tasks will be performed by this insolvency practitioner.
- Once the trust deed becomes protected, the creditors cannot take any legal action against you to recover debts.
- It will give you proper financial control over your expenses.
- The payments will be made to the creditors as per your monthly income. The fees and the expense of the trustee will be agreed between the debtor and the creditors.
How does a Scottish trust deed work?
First, you choose a debt advisory firm and consult with an insolvency practitioner, who will actually act as the trustee in the deed. The practitioner will fix a certain meeting with you to discuss your present financial conditions and circumstances. This will help them to draw a proper realistic budget, and they can also determine your level of affordability towards paying off debts.
They will figure out a single monthly payment, which will replace your multiple monthly payments to creditors. Once the deed is done, it needs to be submitted to the creditors for approval. It is an important step towards securing you from the legal actions taken by creditors. To choose a trustee for your trust deed, visit this link www.DebtAdvisoryScotland.net.
Once the trust deed is signed by the creditors, the trustee will send your creditors a proposal mentioning how much you are proposed to pay, how much money the creditors will receive per month over the time period of the deed. Creditors will be given five weeks to either accept or reject the proposal. If no objection comes up from the creditors or if the number of objection is less than one third, then the trust deed will get the protected status.
Once the trust deed gets the protected status, your creditors cannot take any legal action against you to recover debts.
Once you pay off all your debts over the confined time period of the deed which is four years, a discharge letter will be issued on your name confirming the position. The creditors, who are included in this deed, cannot chase you further for any of their due payment.
Therefore, a protected trust deed of Scotland serves a useful purpose. To get more information about it and to choose a professional trustee, you can click on this link www.DebtAdvisoryScotland.net. They will provide you impartial and confidential advice on entering a trust deed.