The Scottish trust deed is actually a form of solution for debt that is almost similar to the IVA of the England, Northern Ireland and Wales. The trust deed is formatted so that a debtor and creditor are able to have a mutual agreement and it becomes beneficial for both the parties. The Scottish trust deed is made for the debtor to help the individual avoid bankruptcy and it also enables the creditor to avail some payment which would not be possible if the debtor is bankrupt. This is a form of debt help for the people of Scotland and at times, this proves to be a good solution if you are in a condition that you do not have any other option than going bankrupt.
It is also a fact that a huge number of people are not sure about the functioning of the Scottish trust deeds and also the positioning of the assets. Before we delve deep into the complete discussion of assets, it is really important for the people to know how the Scottish deeds actually work and also whether you are eligible for a Scottish trust deed or not. If you are having any unsuccessful debts like the overdrafts, credit cards, or store cards for which it is becoming very tough for you to make the full repayments, then a trust deed is definitely going to help you. But at the same time, you need to remember that this will not be of much help if you are not able to pay the secure debts like the mortgages or the loans. Still, if you are unable to repay the loans, because you have to complete the payments of credit cards, then you can opt for the Scottish trust deeds as it helps in consolidating the unsecured debts and also you shall have the option of maintaining the mortgages.
The first thing that you need to look out for is an insolvency practitioner. This will be the person who will be appointed as your trustee and at the initial stages, he/she will determine the overall earnings and expenditures. The necessary expenditures like any utility bills, mortgages, council taxes, secured loans and car finances will be reduced from the overall income along with the essential amount for living. The amount that is left after deducting the above mentioned expenses will be distributed within the creditors. The division will be on certain equal proportions.
According to this protected trust deed website, the amount that is offered to the creditors will be paid continuously for the next three years and they will have the time period of five weeks for objecting to the amount that has been discussed initially between the creditor and debtor. If no objection is reached within this period of time then it will be considered as acceptance; and the same thing happens if more than half of the creditors do not object then it is also an acceptance. A trust deed is definitely one of the better options you can opt for securing all the unsecured debts that you may have.