Scottish trust deeds are a debt solution for people who have a minimum of £5,000 of debt, it is a personal insolvency solution for UK residents, designed to enable them to remove debt much quicker than if they didn’t take on a trust deed.
If debts remain unaddressed by people struggling there is every chance the debts would become worse
How Is The Trust Deed Different To Other Debt Solutions?
The Scottish trust deed (Scotlands’ own version of the IVA – Individual Voluntary Arrangement) is a debt solution which is backed by insolvency laws, more specifically the insolvency act 1986.
It has more legal powers than a more standard debt management plan, as a debt management plan is a more informal arrangement to help people become debt free, and there is no fixed period with a debt management plan.
Trust Deeds are an alternative to debt management plans, with more formal legal powers and the opportunity to actually write off the majority of your debt as opposed to
Trust deeds are the more popular option for people who are struggling with their finances.
Scottish trust deeds are one solution for people when they need help with debts which tend to be higher than what people would place in a debt management plan (DMP) they are they sort of debts which people would consider a more drastic solution (such as bankruptcy, in Scotland what is known as ‘sequestration’, which is the Scottish version of bankruptcy.
How Much Debt Can A Scottish Trust Deed Write Off?
There is no upper limit to the amount of debt which a Scottish trust deed could write off, in fact the larger the debt the better the more advantageous the scheme is for the person dealing with debt.
People have been known to write off debts above £100k with a Scottish trust deed, as you may imagine the trust deed is a very powerful government backed debt solution.
For English, Welsh Or Northern Irish Readers:
There is the IVA (Individual Voluntary Arrangement) which is a debt solution just like the trust deed, except it generally lasts around 5-6 years, you can find out more about IVA services here.
What Happens If I Don’t Currently Have A Job?
It’s not necessarily a requirement to have a paid job before taking on either a Scottish trust deed or an IVA, however if you are on benefits or universal credit you must have a minimum of £80 per month in disposable income, this is so you can afford the monthly repayments.
It is very important to keep up with the repayments with the IVA or the trust deed scheme because if the schedule is broken it can result in a default and the agreement breaks.
If the agreement breaks, the lenders can petition to make you bankrupt, due to violations of the agreement which was agreed by the lenders and the courts.
Help is at hand with there being well over 70 debt management companies’ all over the UK.
There has never been more help available for people living in the UK who are struggling with debt.
