If you have been struggling to clear your daily bills or cope up with the interests of the loan repayment and other financial problems, there are a lot of options that are available to you for clearing off your debts. The Scottish trust deeds will be immensely beneficial for those who have been in trouble repaying the amount of money owned by the creditors. This is a legally binding agreement that will help your creditors to receive a certain amount of monthly payment from your income. It is definitely better to pay a consolidated amount of money to the insolvency practitioner or the trustee who will deal with the creditors than paying each creditor individually per month.
When you go for a Trust deed, the amount of repay will be deducted from your total amount of repayment or money owed to the creditors and nothing will be added to it. Furthermore, no additional charges will be added up to you for setting up a Scottish trust deed and it will last for a period of 36 months. If you are able to make a constant payment of the agreed monthly amount, then the rest of the amount will be written off and you can become absolutely free of debts. Once you have come to an agreement, the creditors will have no right to bother you and you will have the complete freedom from all the harassment if you keep paying the monthly amount to the creditors.
However, there are certain negative factors like you will not be allowed to take any credits, but this factor should not be of much concern. One of the major reasons that the creditors tend to accept the terms of Scottish trust deeds because, if you are not able to return any amount of money at that time then you can apply for bankruptcy. That will provide the creditors with even less amount of return. Thus, even if they are reluctant, the creditors agree to the terms of trust deeds.
A protected trust deed is such that is legally bound to all the creditors. After you have applied for a trust deed, each creditor must be informed and they will be provided 5 weeks for objecting to the agreement. If more than one third of the numbers of creditors accept to the terms and conditions of the trust deed, it will be considered as accepted even if other creditors do not agree. One of the benefits of applying for such deeds is your home will not be seized in the name of debt repayment. You can easily calculate the amount of repayment by using the IVA Calculator found on the home page of IVA Pros.