Scottish IVA - The Trust Deed Debt Solution
Staying out of debt can be tough, especially in a recession.
With the current financial climate, more and more individuals are becoming bankrupt.
Most governments world-wide have a form of legislation to help individuals avoid personal bankruptcy and in most of the UK there is an Individual Voluntary Arrangements (IVA).
The Scottish IVA equivalent is called a trust deed, which is also sometimes referred to as a protected trust deed.
The debtor requests help from an insolvency practitioner who then deals with the creditors directly.
For it to become 'protected' the creditors who are owed 66% or more of the total debt amount must agree to repayment.
The disposable income is arranged between the individual and their trustee and this is then communicated to the creditors.
Any funds left over after living expenses are calculated are then divided up between the creditors.
A person does not need to be in employment BUT they must be able to demonstrate that there is a regular monthly disposable income.
The Scottish IVA can benefit an individual as follows: It can help write off up to 90% of the original debt amount.
The creditors agree to write off debt that is left over after the period of 36 months when the trust deed ends.
36 months is a typical period, however in some cases a trust deed can last for 4 or 5 years.
If in doubt an individual should speak to a professional Scottish IVA adviser and clarify this prior to signing an agreement.
A Trust Deed helps to repair credit rating long term.
It is likely that an individual with multiple debts will have had default notices served against them or missed payments.
The end result is that there credit rating will have been affected.
It will harm an individual's credit rating for up to 6 years and you will find it hard to get further credit after the trust deed has ended.
A key difference between a trust deed and sequestration (Scottish bankruptcy) is that withyou can rebuild your credit and even eventually have further credit cards, loans or mortgages.
Keep your assets.
In most chances, you will be able to keep your house and car.
It helps to deal with the situation.
Signing a Scottish IVA shows your creditors that you have the intention to resolve the debt.
Scottish IVA's reduce the number of payments made monthly to creditors.
With this solution, one single monthly payment is made to creditors.
Many people in debt find that interest and charges are built up by late payment, caused by forgetfulness or administrative errors on their creditors part.
Peace of mind.
Most people in debt can describe the same feelings of stress and depression.
Constant telephone calls by debt collectors, demand letters and even doorstep collection agencies will have had at one stage or another, an effect on the mental health of the individual.
You should research companies that offer these services prior to signing an agreement and ask for details of all fees to be declared before choosing your provider.
With the current financial climate, more and more individuals are becoming bankrupt.
Most governments world-wide have a form of legislation to help individuals avoid personal bankruptcy and in most of the UK there is an Individual Voluntary Arrangements (IVA).
The Scottish IVA equivalent is called a trust deed, which is also sometimes referred to as a protected trust deed.
The debtor requests help from an insolvency practitioner who then deals with the creditors directly.
For it to become 'protected' the creditors who are owed 66% or more of the total debt amount must agree to repayment.
The disposable income is arranged between the individual and their trustee and this is then communicated to the creditors.
Any funds left over after living expenses are calculated are then divided up between the creditors.
A person does not need to be in employment BUT they must be able to demonstrate that there is a regular monthly disposable income.
The Scottish IVA can benefit an individual as follows: It can help write off up to 90% of the original debt amount.
The creditors agree to write off debt that is left over after the period of 36 months when the trust deed ends.
36 months is a typical period, however in some cases a trust deed can last for 4 or 5 years.
If in doubt an individual should speak to a professional Scottish IVA adviser and clarify this prior to signing an agreement.
A Trust Deed helps to repair credit rating long term.
It is likely that an individual with multiple debts will have had default notices served against them or missed payments.
The end result is that there credit rating will have been affected.
It will harm an individual's credit rating for up to 6 years and you will find it hard to get further credit after the trust deed has ended.
A key difference between a trust deed and sequestration (Scottish bankruptcy) is that withyou can rebuild your credit and even eventually have further credit cards, loans or mortgages.
Keep your assets.
In most chances, you will be able to keep your house and car.
It helps to deal with the situation.
Signing a Scottish IVA shows your creditors that you have the intention to resolve the debt.
Scottish IVA's reduce the number of payments made monthly to creditors.
With this solution, one single monthly payment is made to creditors.
Many people in debt find that interest and charges are built up by late payment, caused by forgetfulness or administrative errors on their creditors part.
Peace of mind.
Most people in debt can describe the same feelings of stress and depression.
Constant telephone calls by debt collectors, demand letters and even doorstep collection agencies will have had at one stage or another, an effect on the mental health of the individual.
You should research companies that offer these services prior to signing an agreement and ask for details of all fees to be declared before choosing your provider.
