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This home page for Trust Deed Scotland website contains comprehensive information about these official, government backed programs. Those who are suffering from debt may find relief through these plans. While participation is voluntary, the agreements are formal and binding. They have many benefits to both the debtors as well as the creditors.
In order to qualify for this beneficial program, debtors must meet three criteria. Each participant must be a resident of Scotland. In addition, she or he must have a level of unsecured personal debt which is at least £10,000. Finally, each candidate must have a full-time or part-time job. Self-employed individuals are eligible. However, they must verify their income, which usually involves submission of the business' financial statements from the prior six months. To verify eligibility, please contact a representative in our office.
A formal Trust Deed arrangement functions in the following way. A debtor turns over all her or his financial information to a trustee. The submitted data must include details about all income, assets, and expenses. In addition, all debt information must be submitted to the trustee.
A Trustee is also known as an Insolvency Practitioner. Usually, these professionals have backgrounds in accounting. Throughout the United Kingdom, a licensed or authorized insolvency practitioner is required for all formal insolvency proceedings. Licenses are issued by several professional organizations, including the Insolvency Practitioners Association, The Law Society, the Association of Chartered and Certified Accountants, and the Law Society of Northern Ireland. In addition, the Institutes of Chartered Accountants of Scotland, England and Wales, and Ireland are authorized to issue these licenses. Insolvency practitioners must comply with specified regulations, and submit to routine inspections by regulators. To locate an accredited, competent trustee, please contact us.
After receiving the details of a debtor's income, expenses, and debts, the trustee conducts an in-depth assessment. During this analysis, the trustee calculates income, financial assets, living expenses, and level of debt. While assets may include homes and vehicles, in many cases, the debtor may retain them.
The trustee develops a manageable monthly payment plan, based upon all their calculations. Then, she or he proposes the plan to the debtor. If it is agreed upon, the proposal is then submitted to the creditors. When all parties accept the terms of the agreement, it becomes formal.
There is no fee for the trustee's services. Rather, their services are covered by a portion of the debtor's monthly payment. An important facet of this government-backed program is the fact that creditors must forfeit a small portion of the debt which is owed to them in order to cover the services of trust companies. To receive free advice, please contact our office.
It generally takes two to four weeks for the trustee to develop the proposal. Then, the creditors have a two-week time period in which to review the proposal, accept or reject it, and return it to the trustee. Some creditors have minimum levels of repayments, and may reject the plans if they fall below this threshold. However, the trustees are aware of generally acceptable limits, so rejections are not common. More details about these financial components are available from the representatives in our office.
When a Trust Deed Scotland becomes registered as protected, it prevents any further action from creditors. They may not petition the courts for bankruptcy (sequestration) of the debtor. From the moment of enactment, all communications from creditors must be addressed to the trustee, who acts on behalf of the debtor. These agreements do not involve the court system, and do not appear as public notices in newspapers.
The formal Trust Deed usually involves a 36-month repayment plan. However, in some cases, the time frame can be extended to 48 months. During this period, the trustee collects all payments, and monitors the debtor's finances. The debtor's credit file will show a default status during this time, which means no new credit agreements may be entered into.
The content on this home page for Scottish Trust Deed website is designed to provide a fundamental outline of the program. This official government plan has helped many individuals and families escape the overwhelming burden of debt. After compliance with the 36-month repayment plan, the debtor's credit rating is restored, and she or he becomes debt-free. For more detailed information about this beneficial program, please contact us on 0141 345 2904.
