Debt Help & Advice

Scottish Trust deeds:

Creditors lend money based on the understanding that you will repay the money but your personal situation may have changed. You may have lost your job or fallen sick but the result is that you cannot make your monthly loan payments. This unpaid debt can give anyone sleepless nights. Most creditors are willing to work with you but in the end, they do want their money back. If you cannot pay back their money, they will use legal, public and private means to recover their debts. In case you are facing such a situation, we urge you not to worry. You can declare an insolvency through a Scottish Creditor Agreement and still be standing after the creditors have been paid off. The process may seem complicated but it works and it's a far better alternative to declaring bankruptcy.

What is This Deed?

A Scottish creditor agreement is a legal agreement between you and your creditors in which you agree to pay back a set amount of money over a period of four years. A licensed insolvency practitioner will assess your loans and your income and plan the deed accordingly. This deed is only applicable on Scottish citizens who have more than £5,000 in debt. At the end of four years, any remaining debt is written off and you are debt-free.

How Does It Work?

• Once you realize you cannot pay back your loans, you have to contact an insolvency expert right away.
• The expert will assess your debt and income. He will then ask for details about your loans. Make sure you provide as much detail as possible as it will result in a much better agreement between you and your creditors.
• The IP will then plan a monthly payment amount that will go towards paying off your unsecured debts. Please note that this means you will only have to make one payment to the IP who will then pay your creditors according to the deed agreement.
• Once the deed is accepted and signed, the IP will then contact your creditors and discuss the repayment process with them. The creditors are also notified about how much payment they can expect every month.
• A notice is then place in the Register of Insolvencies to notify all creditors. Creditors have anywhere from three to five weeks to accept or object to the proposal. If there are no objections and if 75% of the creditors accept the deed, then the deed gains legal protected status. In case creditors do not respond, it is considered that they have accepted the terms of the agreement.
• The creditor-borrower agreement comes into effect and you have to start making payments. You will not lose your assets and you will not have to sell anything but if you have a lot of equity in your home, it may be released to pay off the creditors.
• You should know that the deed will affect your credit rating.
• Once all payments are made over four years, you will be given a discharge letter that states that you are clear of your loans and you cannot be pursued for the balance of the amount still due to them.

Who is Eligible for a Credit Rating Scottish Trust Deed?

The basic qualifications are simple
• You should be a Scottish citizen
• You have more than £5,000 in debt to two or more creditors and you are currently insolvent.
• You can make a monthly payment of at least £80.
• You owe money to at least two creditors.

What Are the Benefits?

There are several benefits to getting a deed agreement as soon as possible. For example, the agreement is just for four years and you will be clear of debt in 48 months or less. These agreements are simple and easy to set up and you can continue running any business that you have at present. You can pay back only the amount that you can currently afford. As a result, more than 50% of your loan is written off and you are debt-free quickly.