Trust Deeds (Scotland only)
Trust Deeds apply only in Scotland and are formal
arrangements with creditors, similar to an IVA
for residents in England.
In this case, a debtor grants a deed in favour
of the trustee, transferring their assets to the
trustee for the benefit of creditors.
The Trust Deed may be registered as "protected",
( provided certain conditions are met). This prevents
creditors from petitioning for the debtor’s sequestration
or taking any other steps to recover debts due
to them. The consequences of signing a Trust Deed
will be different for each individual or partnership
due to variations in financial and personal circumstances.
Plus points.
All correspondence from creditors are dealt with
by the Trustee, relieving the pressure off the
debtor and placing the debtor in control of the
his or her financial situation rather than creditors
and reduces the costs as a trust Deed is usually
more flexible and less costly to administer than
sequestration. It also allows debtors the right
to fulfil certain public offices - this is not
be the case with sequestration.
Minus points.
Existing arrestments and other diligence will
still be effective, for instance
- Home owners may be forced to sell if creditors
cannot be paid in full from other sources
- Debtors cannot trade on their own account
or hold directorships of a limited company.
Taking professional advice is generally the
best route to resolving debt problems. For us
to asses which type of debt solution is most likely
to help you out,
click here.
If you would like further advice on wether a
Trust Deed is right for you, enter your details
below and we'll contact you. Our resident debt
adviser, Wally Stone has over 20 years experience
in finding the right debt solution for people
in any situation. You can call him on 0845
466 0364 for advice on IVA's or other
debt issues.
|
