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What is a Scottish Trust Deed and how could it help you?

Trust DeedsA Scottish Trust Deed (Scottish version of the IVA) is a broad and wide-ranging solution to your financial difficulties. Rather than describe what it is, it may be better to say what it is not. It is not bankruptcy and is, therefore, an alternative to it.

Both, though, are formal and legally-binding contracts or agreements between you and those to whom you are obligated to pay. Both have to be approved in a court of law and both you and your creditors have to abide by all the terms of it.

Most people in dire financial straits do choose the Scottish Trust Deed, and perhaps rightly so. It can be preferable if you 1) are the owner of a business; 2) are the owner of a home or other assets (such as a vehicle) that you do not want to lose; 3) may be terminated in your employment as a police officer, in the armed forces, or in other security fields if you were to become bankrupt; 4) are or will be a designated power-of-attorney on behalf of someone else; 5) do have some spare income each month which will be used to pay off the obligations; and 6) want to avoid the social implications of bankruptcy.

In addition, a Scottish Trust Deed (IVA) has a less (or no) negative impact on other things. For example, you are free to keep and maintain your bank account. There is no need to inform them that you have a Scottish Trust Deed. On the other hand, if you declare bankruptcy then your bank account will most likely be closed, and it may be difficult or impossible to open an account at another bank. Without a bank account, without a debit card linked to your account, you will have to pay for everything in cash. How will you get the cash? You can get it from negotiating your paycheque, but how will you negotiate that without a bank account?

Because you are reading this, you may be at a point in which your creditors are attempting to get you into bankruptcy. This is beneficial to them (or, at least, the threat of bankruptcy is beneficial to them) but is it beneficial to you? By taking advantage of a Scottish Trust Deed by clicking http://www.debtadvisoryscotland.net/trust-deed-in-scotland.php, you can stop or avoid any bankruptcy proceedings.

Most of all–and as alluded to throughout our site–a Scottish Trust Deed is very flexible and covers almost all options and situations. However, there are some limitations or disadvantages to having this. It is for a term of three to five years. A lot can happen during this time–hopefully good, but perhaps bad. If you have another financial emergency, such as that created by a medical expense, or are unable to keep up with the payments as stipulated in the Scottish Trust Deed agreement, then your creditors may force you into bankruptcy. In other words, all that time and effort in getting the Scottish Trust Deed will have been for naught.

In addition, your creditors may not agree to your having a Scottish Trust Deed based on your debts, income, assets or other issue.

In these cases, as well as others, bankruptcy can actually be favourable if you do not own a home and you have little or no spare income in which to repay your creditors. You may also have to pay your creditors less than you would otherwise, and it can be for a shorter period of time.

To find out how these features can help you in your specific situation, visit Debt Advisory Scotland.