The Government of Scotland has introduced a system called protected trust deed in order to safeguard their citizens who are badly affected by debts. This scheme is broadly welcomed by many people who are suffering from bad debts and finding very difficult to settle the loan amount. Under this scheme, a trustee will be appointed and they will access all your loan details and provide a solution on how to repay the loan amount in a scheduled manner. The agreement is called Protected Trust Deed and it will be executed in between you and all your creditors. You can find more updated news regarding trust deed at scottishlegal.com. The agreement period will be four years and can be extended in case of any demand.
· You have to approach a licensed legal adviser or and approved insolvency practitioner in order to execute a protected trust deed. They will act as a trustee for you and all your creditors. The trustee then evaluates the value of your asset and how much can pay on a monthly or weekly basis after keeping in mind your living expenses, other emergency and important expenses. Once the agreement is executed, you will have to pay only one fixed amount and there is no need to pay many different types of payment to your creditors.
· Then trustee will check with your creditors and the trust deed will be executed only if the majority of the creditors are agreeing for executing the trust deed. This settlement process will be published by the registrar of the insolvencies. Your creditors are having five weeks time to consider about this settlement method. They have the option either oppose or accept the agreement. If the majority of the creditors are accepting the proposal and then the trust deed will be executed.
· Keep in mind that this scheme can be executed only when your debt amount is more than the prescribed minimum threshold limit set by the Government of Scotland. Once the agreement is executed your creditors cannot file any bankruptcy case against you. Also, the settlement amount will be fixed and your creditors cannot take further charges and interest for the amount what they are provided to you in the form a loan.
· Your trustee may take over the possession of your assets if there is no other option to settle the dues. Once the agreement period is over and all the payments are completed as per the settlement terms. You will be discharged from all the dues which are including in the trust deed.
· The payment settlement method is calculated only based on your eligibility criteria and keeping in mind to safeguard your living expenses.
· Once the trust deed is executed the trustees will take in-charge of your debts and your creditors have to contact them for any matter in future.
· Your creditors cannot take any legal actions against you who are part of the trust deed
· Once the agreement period is over you will be totally free from all dues and you can start a peaceful life.
· There is no problem with your job and even you can continue your job during the agreement period of four years.