Scottish Trust Deed

A Scottish Trust Deed is a very similar financial arrangement to an individual voluntary arrangement (IVA) which effectively gives an individual more breathing space with regards to their finances by putting forward a reasonable payment plan which could see a significant part of their debt written off. The Scottish Trust Deed industry continues to grow as more and more financial problems emerge from the dust of the UK economic recession. As and when the economy does begin to move back towards growth we will continue to see a growing number of people applying for Scottish Trust Deeds because of the time lag between problems occurring and problems being addressed and sorted.

A Scottish Trust Deed is a legally binding agreement between debtors and creditors which should effectively draw a line under a person’s financial troubles and allow all parties involved to move forward. Banks and creditors have realised that there is no point chasing individuals for money they have not got as this has a cost to all parties involved. Therefore, a number of banks and financial companies are now looking to put in place an array of Scottish Trust Deeds which will allow people to repay part of the debt, calculated on their income and their expenditure, and finally see them debt free at the end of the Trust Deed period.

While there are obvious issues with regards to credit ratings and credit in the future the truth is that many who have been through a Scottish Trust Deed and or sequestration will be very wary of taking on any debt in the future anyhow. You must also remember that any credit rating issues will not last forever and as long as you learn your lesson when your Trust Deed or sequestration is in place then there is no reason why you cannot eventually enjoy a more traditional financial existence.

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