Trust deeds are not the end of the world!

As the UK recession continues to grab hold we are seeing more and more people around the UK suffering from growing debts and unable to cover every day living expenses. However, for those in Scotland looking towards a possible trust deed to protect them from their creditors they need to remember that a trust deed is not the end of the world!

Those who bury their head in the sand and hope that their debt problems will go away are the ones who could possibly lose everything while those who are more proactive and look towards trust deeds (the Scottish alternative to IVAs and other arrangements with creditors) are the ones who can at least maintain a relatively normal life. While there are obviously downsides to trust deeds, as there are with any arrangement with creditors where debts cannot be repaid, it is far better to act sooner rather than later.

The Scottish authorities are very keen to protect consumers where possible and if they do fall into severe financial trouble they still require a certain degree protection to be given time to get their affairs in order. Any creditor would prefer to receive a percentage of their debt as opposed to bankruptcy where they would likely receive very little, if anything, so acting in the short term could be beneficial to all parties involved.

As with any financial transaction, it is vital that you approach professional advisers so that you are able to choose the best possible option for yourself.

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