As the name of the deed would tell you, we are going to be talking about the Trust Deed that is applicable to Scottish people. Debt is a big worry that many people are involved in nowadays but there are arrangements that are available to get out of this problem so you can always opt for Trust Deed but many people ask can you get an IVA in Scotland? Even though IVA is a famous option among debt settlers but it is not for people of Scotland but Scottish Trust Deed is a great option and if you want to go for it then you would need to hire an insolvency practitioner(IP). Listed below are the functions of a Trust Deed, highlighting it’s benefits and the prospect of a stress-free life:
For the benefit of your unsecured creditors, a Trust Deed is an agreement between you and a licensed insolvency practitioner.
A complete check of your affordability will be carried out, and the payment that one would make each month would be equal to your income, minus all your day to day expenses which will ensure a much more peaceful life.
It usually takes about four years for the monthly installments to be made, but it can take longer.
One of the most beneficial aspect of a Trust Deed is that the remaining debt is written off at the end of the agreement.
Another stress-free element that comes along with a Trust Deed is that on the date of commencement, all or any interests or fees on your debt are frozen.
Lack of Contact With Creditors:
After the Trust Deed comes into motion, creditors are not to contact you any longer.
Lack of Legal Action Against The Individual:
If the individual should stick to the terms of the agreement, the creditors cannot take any legal action against him.
Administration By The IP:
On entering a Trust Deed, the IP who prepared the agreement also becomes the individual’s Trustee, and it becomes their job to manage and administer the respective individual’s Trust Deed.