Trust Deeds - Scotland
Protected Trust Deeds - (Scotland Only)
1: A Protected Trust Deed in Scotland is a Scottish Insolvency solution.
2: The Scottish Trust Deed is the equivalent to the IVA used elsewhere throughout the UK.
3: Trust Deeds are only available in Scotland.
4: Protected Trust Deeds usually last for 4 years or 48 months but can go on for longer in certain cases.
5: When entering a Trust Deed a person would be expected to disclose all of their income and expenditure details in order to establish a disposable income.
6: The disposable income is the amount agreed upon which the individual will contribute on a monthly basis towards their protected trust deed.
7: The debtor will agree to pay the creditor/s an amount each month, after 48 monthly payments the debtor would be free of the debt and any remainder owed would be written off by the respective creditor/s.
8: There is a meeting of creditors where the Protected Trust Deeds is proposed, the majority creditor has the right to object, their acceptance is pivotal to the Trust Deed going ahead.
9: A Trust Deed is not always the best debt solution for people who are struggling and continue to do so.
10: Only a licensed insolvency practitioner can manage and supervise a trust deed. A Scottish insolvency practitioner is a qualified individual who practices insolvency in Scotland.
11: All trust deed fees and costs should be disclosed to the debtor prior to the protected trust deed proceeding and NO upfront fees should be charged to the debtor.