The number of people who find themselves in financial distress is increasing throughout the world. Fortunately, for the residents of Scotland, the government has created Scottish Trust Deeds, which are saving about 7,500 people each year from the need to file for bankruptcy and lose their homes and possessions. Below are some important facts that you should be aware of when you are considering turning to this type of debt resolution.
Qualifying for Trust Deeds Scotland
Having a home in Scotland, but citizenship in another country will not enable you to take advantage of this type of help. The person applying for the Trust Deed, must be a citizen of Scotland. This programme is uniquely Scottish and is designed to help the residents of the country. Each year about 45% of the men and 55% of the women in Scotland, with an average debt of £32,652 receive this type of debt help Scotland.
You must be employed and have at least £10,000 in unsecured debt to qualify for the programme. The programme will normally last for three years, so having a secure income will be important in assuring that you will be able to pay the contribution throughout the period that the Deed is in place.
How Do I Find An Insolvency Practitioner?
Since the Scottish programme has started, there have been hundreds of marketing companies and debt advisors come on the scene. Since there are no regulations on who can be a debt advisor, it is important for you to follow some important steps to assure that you are find the advisor that will meet your needs.
A reputable company will have a Consumer Credit License and be licensed with the Office of Fair Trading. They will also have a Compliance Procedure and a “cooling-off period” for you to consider the advice and options that they provide. The company will not try to rush you and will answer all of your questions so that you feel confident that you have made the best decisions.
Only an Insolvency Practitioner can set up Trust Deeds in Scotland. Most marketing providers work with one Practitioner. However, their fees and charges vary, so it will be important to learn what the charges will be before you sign a contract with the provider. Reputable companies will tell you what their fees and charges are and how long it will be before your programme is started.
What Does The Debt Advisor Do?
Debt Advisors provide many services, in addition to preparing the information that the Insolvency Practitioner will need. Most people are in debt because they were not provided with enough options about how to control their unsecured debt and spending. When you need debt help Scotland professionals will provide you with the advice and training that you need to benefit from the programme and be out of debt within the three years that you will be paying the debt.
The advisor will discuss the debts that are not eligible to be included in the Protected Trust Deed. A person who is paying child support or has benefit deductions cannot include these debts in their Trust Deed. There are also some occupations that have a requirement in the employment contract that they be notified if you are going to apply for a Scottish Trust Deed. If you are uncertain about whether or not you need to notify your employer, it will be important to read your employment contract carefully.
The advisor will discuss the assets that you may need to give up in order to satisfy creditors. While an older car that is used for commuting to work may not be a saleable asset, a new vehicle that has a large outgo will probably need to go. You may also need to free up some of the equity in your home to satisfy creditors and reduce your monthly contribution for the Protected Trust Deed further.
Summary
The relationship that you begin with a Scottish Trust Deeds professional will last for at least three years. Therefore, it will be important that you compare Advisors, make sure that you are comfortable with the services they provide. Some providers offer a broad range of services while others have a limited scope. When you are attempting to reduce debt without losing your home or other possessions, the Scottish Trust Deeds programme is designed to help you achieve your goal.