Everything You Need to Know About Scottish Trust Deeds

• What is a Scottish Trust Deed?

It is a protected trust deed, which is overseen by the Accountant in Bankruptcy, within a formal and conscious agreement used by Scottish residents between the debtor and the creditor, where the person in debt provides small amounts of money to the creditor over a long period of time to get his debt written off.

All your belongings are passed to trustees, who will take care of your financial affair and make sure you're able to pay off the maximum amount of debt possible for that month.

• When will Trust Deeds become an option for you?

1. In case you have debt over £5,000
2. You need to have enough income to make a regular contribution to your debt. You might not be eligible to set up Scottish Trust Deeds if your only source of income is from profits.
3. You need to have belongings worth the price of the money you borrowed. In case you fail to pay the money back, your assets can be sold off to achieve the task.

• Advantages of Scottish Trust Deeds

1. The people who you borrowed money from can no longer contact you and instead have to deal with your trustee regarding financial matters.
2. If you're thinking about setting up Scottish Trust Deeds, you might want to apply to the Accountant in Bankruptcy to stop your creditors from taking money from you by the use of aggressive steps like arresting your bank account.
3. You will not be barred from some specific kinds of employment or public offices as you'd fall under the category of bankruptcy.
4. Your Scottish Trust Deeds will come to an end in about four years (called discharge), and most of your debt will be paid off, and you will not have to worry about paying them back.