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If you are considering getting into a trust deed, then you need to know exactly what you’re getting into. Basically, a trust deed is a debt solution in Scotland that has many advantages.
So, if you have a lot of debt and feel as though you’re at the end of your wits, then it may be time for you to talk to Scotland Debt Solutions. We actually take a close look at your particular situation and create a path so that you can enjoy a future that is debt free.
With that said, we will cover a couple of advantages of trust deeds for you to consider.
It is not likely that you would have to sell your home so that you can get the money to pay your creditors. However, if you can’t get the equity from your assets, then this is a last option for you to think about.
You will have to pay one payment on a weekly or monthly basis. This is calculated using standard tools that also keep in mind your basic cost of living.
So, if your circumstances change, then the Trustee will look at the new circumstances and then decide on if your contribution should be increased or decreased.
In the event that you have creditors harassing you, then simply provide their contact information to your Trustee and they will contact them and let them know that they have to deal with them and to cease calling/contacting you.
When you enter a trust deed, all creditors won’t be able to take court action on you or try to start a bankruptcy petition once your trust deed has protected status. Once the trust deed period is over, this is usually in 4 years, you will be free of debt. This depends on particular debts like student loans as well as criminal fines which are not discharged.
Once you have sufficient creditors that give the okay on trust deed repayments, your trust deed will gain protected status. This essentially means that you won’t have any additional charges or interest which will ensure that your debts don’t get bigger. In most cases, creditors typically agree to this since it will ensure a better return for them than if you had to declare bankruptcy.
In the event that you have a business, you would still be able to continue running your business. You will still be able to be the Director of a limited company once there are no restrictions by the articles of association. They also need to be adjusted to show that you have a trust deed. If you have a job, the trust deed will most likely not affect it. With that said, make sure that you review your employment contract. After the trust deed is protected, you won’t have to deal with earnings arrestments.
