All of your assets are transferred voluntarily to a trustee, who then manages and sells them to pay off your creditors. Simply put, it is a mechanism that allows you to repay your debts over a specified period of time. Your monthly payments are based on your ability to pay, and after the term of your contract, any remaining debts are forgiven. This typically includes a 36-month contribution from your income, though this may vary. The trustee must be a licensed professional. The law requires insolvency practitioners to be members of an authorized governing body.
What are you making a commitment to? You are engaging into an agreement to repay your debts, typically at a reduced interest rate. Therefore, you consent to:
o Work together with the Trustee
o Pay the monthly contribution agreed upon
o Accept no further credit
o Notify the Trustee if you receive more than £200 in cash.
What is the status of the interest and fees? The day you sign the Trust Deed, all interest and fees associated with your debts will be frozen.
Advantages of a Deed of Trust?
o You are alleviated of a substantial amount of stress because the Trustee handles all inquiries from your creditors.
o It is typically more adaptable and feasible financially than sequestration.
o Unlike sequestration, it also permits the debtor to hold certain public offices.
o Companies may be able to continue operations, and individuals may retain their directorships.
o The information is not made public (in contrast to sequestration).
Consider before signing.
Signing a trust deed is a significant action; you must ensure that you fully comprehend the document.
Before signing, you must consult the Trustee about the document's subsequent effects. Consider alternatives to a trust deed for clarity of thought. A Debt Management Plan and a Debt Payment Plan are the alternatives. The Trustee should provide you with a copy of the Scottish Government's Debt Advice and Information Package.""
" - https://www.affordablecebu.com/