If you feel as if you’re mired in a debt situation, then don’t worry there are ways to get out of it. One option for you may be to set up a trust deed for your creditors. This would be a binding agreement between you and your creditors that would be enforced by law. Basically, what would happen is that the assets and property that you have would be given to someone, working as a trustee, who will arrange your finances with the express purpose of paying back your creditors. Once a deed like this has become protected, then your creditors will not be able to send you into bankruptcy. However, once this deed exists, you will need to keep making payments on your debts for the next four years. Once you have filled the requirements of the trust deed, then you will be liberated to some extent and many of your debts will be forgiven.
To be eligible for this, your debt must have at least five thousand pounds of debt. If you don’t have this much debt, then you will not be able to get a trust deed.
You will need to find a person who is qualified to act as a trustee. This person should be an insolvency practitioner.
Also, only a protected trust deed will prevent creditors from taking action against you. Therefore, if your trust deed is not protected, this means that only creditors who have consented to the trust deed need to follow its’ rules. Also, the creditors that don’t agree with the trust deed can still try to force you to pay them through the courts. So, you should try as hard as possible to get your trust deed protected, or there is the possibility that your creditors can still bankrupt you. Since, most trust deeds that are protected do not allow you to only put down some of what you own. This means that you will probably have to put down everything you own on the line. Again, this means everything you own excluding household essentials. A trust deed that does not include terms like this will not be a protected trust deed.
If you are the manager of a limited company, then you probably won’t be allowed to have a trust deed. You need to find this out for yourself. Also, getting a trust deed may prevent you from holding public office in the future. Again, the best way to make sure this is not the case is to research for yourself. Also, once you have signed a protected trust deed, this means that you will not be able to apply for the DPP (debt payment programme) under the DAS. Also, if you are in the DPP already, then you cannot sign a trust deed.
So, getting a trust deed may be the best way to stave off potential bankruptcy. However, you need to make sure that you are also following all the rules to the letter. If you need more information go to debtadvisoryscotland.net .