Welcome to the new website for HJS Recovery We will regularly be uploading debt related news and will be able to interact with you using social media. Keep checking back here for more news soon. ...
Scottish Trust Deeds
Scottish trust deeds help borrowers struggling to pay their debts reduce their payments to an affordable amount.
The aim is to help borrowers repay their creditors as much as they can afford from their earnings and in return lenders will freeze interest and charges and then wipe out any remaining debt at the end of the agreement.
A Scottish trust deed transfers the borrower’s rights over their assets, like their home and car, to the insolvency practitioner running the trust.
Under the deed, the borrower’s responsibilities are -
- Paying in a regular, affordable monthly payment for the agreed term of the deed, which is typically 36 months. The amount depends on how much disposable income is left after deducting priority livings costs, like mortgage or rent payments, utilities, food and other bills.
- Paying a lump sum from any assets - sometimes the borrower’s other assets, like a home, car or cash in the bank are included in the deed
The agreed repayment is all a borrower pays unless they reciveve an unexpected lump sum, when some or all of the lump sum will need to be paid into the trust.
In return, creditors agree -
- To stop adding interest or charges to debts
- To put a hold on any legal action
- To write off any remaining balance on debts at the end of the deed
New borrowing started while the deed is running is not included in the deal, so repayments must be met in full and the credit provider can start legal action.
Before entering in to an agreement, it’s essential to take Scottish trust deeds advice from a qualified professional who can talk through the options.
The costs of setting up a deed are taken from the agreed payments into the trust.
Once a borrower has found Scottish trust deeds help and agreed to enter the arrangement, the legal work takes up to four weeks to complete.
When the deed is underway, the firms owed money cannot contact borrowers directly by law, the point of contact for both sides is the insolvency practitioner running the deed.
A trust deed is unprotected or protected - an ordinary, unprotected deed is not binding on creditors unless they agree to the terms, while a protected deed gives both sides of the agreement extra safeguards.
In order for the trust deed to become protected the total number of creditors who object must not be more than half of all creditors in number and a third or more in value. Creditors who do not respond to the insolvency practitioner within five weeks are deemed to have agreed to protect the deed.
Providing a borrower sticks to the repayment terms of a protected trust deed, credit providers cannot take action to bankrupt them, but borrowers are also barred from applying for bankruptcy or arranging a debt repayment programme.
A Scottish trust deed is a serious insolvency solution that affects a borrower’s credit rating.
HJS Recovery helped me sort out my crippling debt problems with both professionalism and kindness. Never judgemental, they agreed a repayment with my creditors that I could afford and now I am completely debt free.
Mr B from Bournemouth
Read more Testimonials
Our Offices:
© Copyright HJS Recovery HJS Recovery LLP
Registered in England No. OC364606
Registered in England No. OC364606
