The Scottish Trust Deed

Those of us who have struggled with debt will know how much this can be a source of worry in on our lives. It just hangs over us and fills our life with uncertainty. It is therefore always best if we can escape this debt as soon as possible. If you are currently struggling with debt and are unable to make even the minimum repayments then one possible solution is the Scottish trust deed. This is a similar type of solution as the Individual Voluntary Arrangement (IVA) that is available in other parts of the UK. It can allow you to write off as much as 90% of your debts.

The Reasons People Choose a Scottish Trust Deed

There are some very good reasons for why people decided to choose the Scottish Trust deed (also known as the protected trust) to solve their debt problems. The benefits of doing so include:

• It should mean that you will be able to protect some of your assets. When people go bankrupt they may lose control over all their assets. When you choose a trust deed you can protect certain assets such as your house and your car.
• One of the most wonderful things about the Scottish Trust deed is that it means that you will not have to pay back all the money you owe. In some cases you may only end up paying 10% of your actual debt and this will be in easy instalments over a three year period.
• Once your creditors agree to this arrangement they will not be able to take further action against you. This means that you are then completely free of your debt problems so long as you meet the minimum repayment. This will remove a huge cause of misery in your life.

How to Arrange a Scottish Trust Deed

It will not be possible for you to arrange a Scottish Trust deed without professional help. You need the services of professional to assess your situation and set the agreement up. They will decide on the fairest arrangement between you and the creditor. They will never suggest anything that you will not be able to afford. Once they have a suitable plan they will then take this to your creditor on your behalf. If they agree to this you will then be on your way to complete freedom from debt. Of course the creditor is not obligated to accept the Scottish Trust deed but they often will if they feel it is the best option on the table.

Negatives Associated with the Scottish Trust Deed

There are a few negatives associated with the Scottish Trust Deed including:

• It is likely to impact your ability to borrow money in the future
• Your name will be printed in the Edinburgh Gazette
• You will usually have to pay a fee to the professional organising the Scottish Trust Deed. Of course the money you save will more than cover this.