How to Apply for a Trust Deed in Scotland
Medicine can be very good. For example, medicine for jaundice can be good, but it is good only if you actually have jaundice. A similar thing can be said of the trust deed in Scotland. This option for reducing and managing your debts is good only if you are eligible for it. The trust deed is available only to those who would most likely face sequestration or bankruptcy if this were not an option. However, it does not assist with small or informal debts. If you owe £500 to your brother or parents then you will have to make other arrangements to pay them.
Secondly, and relevant to the name of this option, you have to be a resident of Scotland. If you are a resident of the rest of the U.K. or another part of the globe then you will need to find out the rules and options that are available in your location. If you were a resident of Scotland at one time and if your debts are from Scotland then we suggest that you seek out a qualified advocate to see if and how you can be considered a resident of Scotland, and what this entails.
Thirdly, and similar to what was alluded to in the beginning, the normal repayment that you are having now must be onerous or burdensome. For very many people, having £20,000 in debts would qualify for being a burden and may cause them to be on the brink of bankruptcy. However, if you are earning £100,000 per year then it is less likely that this amount is overly burdensome to you.
These debts are of just unsecured debts. If you have a loan in which the bank is holding a £10,000 fixed deposit as collateral or security then you may be forced to close the fixed deposit in order to repay the loan in full. At the same time, though, the trust deed will help protect your home and necessary vehicle. If, however, you have a vacation home, then you may be forced to sell it. On the other hand, if you are receiving rental income from it, then it is possible to keep it. All of this will have to be disclosed by you to the consultant who will help arrange a mutually agreeable and beneficial agreement.
If you meet these criteria then it is extremely easy to apply for the trust deed. A third party, such as IVA Pros, will bring together all parties to come to an agreement to what is realistic, viable and mutually beneficial. The creditors do have a grace period of 30 days (or up to five weeks) to raise further objections but if there are none, then the agreement becomes legally binding to all participants.