A Scottish trust deed refers to a debt solution that involves a legal agreement between the debtor and a creditor, carried out through a trustee that allows the borrower to who is unable to pay up a debt; usually that of more than £8,000, to pass their estate to the trustee who in turns deals with the creditors. This agreement lasts for four years after which the lender is required to write off any remaining debt. Hence if languishing in debt, then it’s paramount to seek Trust Deed Help & Advice. Note that this is only available to persons who are Scottish residents.
Advantages of a trust deed
Offers legal protection from creditor action
The lender remains bound by the terms of the trust deed which prevents the acquisition of property to settle debts. You, therefore, get to keep your house or car that you had used to guarantee the loan. This also prevents the creditor from petitioning for your bankruptcy.
Reasonably affordable payments
The trustee evaluates your essential cost of living and uses a standard financial tool method to calculate your required monthly payment which suits your case without putting too much constraint on your other expenses.
Peace of mind
All communication with the creditor is dealt by the trustee thus eliminating the unwanted calls and letters from the lender. This allows you to focus on working knowing well all you have to do is pay the monthly contribution without any harassment.
Debt free guarantee
After the four years agree upon, you will be free of any obligations that are incorporated in the trust deed agreement. This is because any remaining debt is required to be written off.
Allows finances control
As a result of the one payment monthly schedule, you can pre-plan on your sources of income and other expenses without focusing too much attention to the preexisting loan repayments as all these costs are combined into one.
Frozen interest and additional charges
When all of your creditors agree to a trust deed, all interest rates, and fees from unsecured debts become frozen. This prevents the rise of the total debt allowing you to repay quickly.
No negative publicity
A trust deed gives you the opportunity to avoid the shame of dealing with an unpayable debt publicly. This is because your employer is not noticed and the details of the agreement are not required to be made public thus ensuring confidentiality.
Win-win situation for both parties
The debtors gets to keep their properties while the creditor cashes in on the monthly repayments which offer better returns than having the debtor declared bankrupt
From both angles of the debtor and creditor, this agreement introduces a level of sanity that is otherwise not present when it comes to dealing with bad debts.As a result, the field is leveled allowing both parties to make the best out of their situations and is therefore highly encouraged if you are running in bad debts and meet the qualifications.