TRUST DEEDS AND THEIR MEANING

Want to publish news and articles on this website for more links, traffic and greater exposure? Use our article submission service. If you wish to see your article in Google News, try out our press release distribution service. Latest Breaking News - Finance - Viewing: Trust deeds and their meaning Thursday, September 10, 2009 "Trust deeds" – Scottish version of an IVA – explaining what it is why someone would want one. Trust Deeds Trust Deeds are the Scottish equivalent of an IVA. There are a number of significant differences between these two methods of debt solution. What is a trust deed? A trust deed works in a similar way to an IVA in that you have to make a formal application to your creditors through an Insolvency Practitioner, who can then vote to accept or reject it. The trust deed proposal put to your creditors will be for an affordable monthly amount to be paid over 3 years as opposed to the 5 years in an IVA. If you maintain your agreed payments for these 3 years, then any remaining debt you have will be written off by your creditors. The payments you make will be collected by your Insolvency Practitioner and distributed amongst your creditors. They will take their own fees for the administration of the trust deed from the money you pay. Once your trust deed application has been accepted by the majority of your creditors or more than two thirds by value, it then becomes protected and is legally binding on you and your creditors. Do I qualify for a trust deed? Many of the basic criteria for being eligible for a trust deed in Scotland are the same as those for an Individual Voluntary Arrangement; Your unsecured debts should total at least £15,000, you should owe money to at least 3 different creditors, a regular source if income is required to make your agreed monthly repayment, an income and expenditure calculation will be made to check that you have at least £200 spare after paying secured debts and reasonable living expenses You will also need to be resident in Scotland to be eligible. What types of people have protected trust deeds? People commonly apply for trust deeds in Scotland for many of the same reasons as people in other parts of the country apply for IVAs; To avoid the stigma and implications of bankruptcy (known as sequestration in Scotland), to find a lasting solution to unmanageable debt problems, want to stay in control over what happens to their home and job, are willing to make personal sacrifices to become debt free. Living with a protected trust deed isn't easy; your monthly disposable income will be used for the benefit of your creditors, so you'll need to be ready to accept changes to the way you live. 5. differences between an IVA and a trust deed A protected trust deed usually lasts for 3 years rather than 5 with an IVA, if you fail to make your repayments you will face sequestration, the Scottish equivalent of bankruptcy, you'll need the agreement of two thirds of your creditors by value for your trust deed to proceed, with an IVA it's 75%, your credit rating will typically be adversely affected for 4 years with a trust deed rather than 6 years with an IVA, a protected trust deed comes under the jurisdiction of Scots Law Contact us now to explore the possibility of a trust deed as a debt solution for you. Get more information on Trust Deeds and Trust Deeds UK. Note: You are free to reprint this article as long as the text links remain intact. Article Views: 91

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