What are Scottish Trust Deeds?
In the UK, a legally-governed procedure for individuals who are high on debt and have difficulty paying off their debt exists. This is called a Protected Trust Deed (PTD) available to those residing in Scotland. Also called Scottish Trust Deeds, they are equivalent to the Individual Voluntary Agreement or IVA legislation for the rest of the UK.
It is an alternative procedure to claim payments from borrowers who have extremely unmanageable levels of debt that may be unaffordable to pay off. Scottish Trust Deeds, like IVA’s, allow the debtors a fixed period of time to settle their debts. The amount to be paid will be on a case to case basis, depending on the debtor’s current financial situation. At the end of the payment period, any remaining balance will be written off.
The Trust Deed has been tailor-made for insolvent debtors or those who do not have much income to repay the minimum payment requirements of their debts.
A Trust Deed will secure the monthly payment to be made based on the individual’s current finances so they only pay what they can afford, as compared to sticking with the originally-high monthly payment scheme they might have trouble handling. Although, the creditors have the option to either accept or reject the debtors’ trust deed proposals or accept them with modifications but only with the consent of the debtors.
No response from the creditors would automatically mean that they accept the proposals given to them. As soon as an agreement between the creditors and the debtors is reached, no further action can be taken against the debtors and freezing of all interest and charges will take effect. With Scottish Trust Deeds, debtors can:
(1) automatically write off all unaffordable debt,
(2) avail of a tailored monthly payment,
(3) avail a typical fixed payment period of 36 months,
(4) have peace of mind from creditors, and
(5) wipe out interest and charges from existing debt.
Debtors should be willing to commit to making a monthly payment over a fixed period of time and cooperate with a licensed Insolvency Practitioner, also known as a trustee. The trustee will serve as an unbiased mediator or honest broker between the creditors and the debtors and will examine whether the proposal being drafted is both fair and realistic to all parties concerned. The finished draft copy of the proposal is then sent to the debtor for approval.
The trustee ensures that both the creditors and debtors interests are protected by assuming the role as supervisor that monitors the progress of the Trust Deed and the adherence of its terms and conditions. So, for those struggling on debt and would want a debt-free future ahead, the Scottish Trust Deeds might just be the best solution to reach this goal. Alternative fast UK loans are available by all major lenders.