Those concerned with debt are well advised to take the time to learn as much as possible about the options available to them. In this section you will be able to find descrptions written by subject experts of the various solutions. As well as describing how they work you will be able to learn about the strengths and possible drawbacks of each option. Which should you choose? That depends on your circumstances and priorities. We trust that this section of Debt Divas will give you the information that you need to make an informed choice.

IVA Trust Deed Debt Management Plan Remortgage & Secured Loan Bankruptcy

This is a voluntary agreement between a debtor and his/her creditors to repay part of what they owe. A trust deed transfers the debtors rights to everything that they own to a trustee who will sell them to pay creditors part of what is owed to them. A trust deed will normally include a contribution from income for a specified period; this is usually 36 months but can vary.

The trustee must be a Licensed Insolvency Practitioner.

An ordinary trust deed is not binding on creditors unless they agree to its terms. A voluntary trust deed is advertised in the Edinburgh Gazette and providing no objections are received within 5 weeks of the advert it becomes protected.

Protected Trust Deed

A protected trust deed is binding on all creditors. Providing the debtor complies with the terms of their protected trust deed (“PTD”), the creditors can take no further action to pursue the debt or to make the debtor bankrupt.

Advantages

• Your Trustee deals with your creditors on your behalf.
• Unlike sequestration (bankruptcy) a Trust Deed is not advertised in local newspapers.
• You make just one payment per month from your disposable (surplus) income.
• When you Trust Deed becomes protected your creditors cannot take further action against you, arrest your earnings or continue to charge interest.
• It is possible for individuals to hold certain public offices, remain as directors and for companies to continue to trade.
• Trust Deeds normally last three years and at the end of that term the remaining debt is effectively written off.
• Trust Deeds are usually more flexible and cost less to administer than sequestration.

Disadvantages

• Existing arrestments or diligences will still be effective.
• You cannot be a director of a limited company.
• It will affect your credit rating.
• If you fail to keep up repayments then bankruptcy proceedings will probably be commenced against you.
• Any material equity in your property will need to be realised for the benefit of your creditors .

Alternatives

• Debt Management Plan
• Debt Arrangement Scheme
• Bankruptcy

Quick Reply Form

Use this reply form to find out quickly what options are available to you.

Just fill out the simple questions, it's that easy!

The information you provide will be kept in the strictest of confidence and will not be used for marketing purposes and will only be used to give you the best solution for your debt problems.

Click Here

 

 

 

 

 

Fees |Complaints Procedure | Other Sources Of Help | Credit Rating