Trust deed creditors

More and more people in Scotland are looking towards Scottish trust deeds which are the equivalent of IVAs in England. As a consequence the number of trust deed creditors is set to grow substantially in Scotland but what exactly is a trust deed creditor and what rights do they have?

The first thing to make clear is that if you go down the route of a trust deed in Scotland then effectively you are handing over control of your financial affairs and your assets to a trust deed trustee. They will contact your creditors with a proposal which will detail your debts, your assets, your income and a proposed repayment plan where possible. If the agreement is ratified by the majority of creditors then a legally binding agreement will be signed by all parties and their repayment plan put into place.

The trust deed trustee will be in charge of administering the trust deed arrangement, disposing of any assets where applicable and also collecting the various income payments over the term of the agreement. It is worth remembering that a trust deed is likely to impact upon you credit rating and can in some situations prevent them you from doing certain specialised jobs. However, a protected trust deed does protect the client from future bankruptcy proceedings and in many cases can be a godsend.

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