Scottish Trust Deed

[glitter18]

Has anyone ever taken one of these out??  Any info would be great.

Thanks

[Peter Pedant]

STOP!

you dont need us - you need a lawyer!

Scotland has a different legal system to England, and one the big differences is Land and Equity.

[zmudge]

A Scottish Trust Deed is a legal process giving persons living in Scotland who are struggling with unmanageable debt the opportunity to make a formal proposal to their creditors to clear their debt. All creditors are circulated with the proposal and providing no creditors who have claims totalling greater than 1/3 of the total debts vote (within five weeks) to reject the proposals then the Scottish Trust Deed becomes protected and legally binding upon all of the creditors that were circulated. Through this creditors are often paid less than actually owed. The pressure of being in debt is reduced as all correspondence, including  queries from creditors, is handled by the Trustee. Equity from a home is released into the Scottish Trust Deed usually as part of the final settlement. However, there are mechanisms that can be put in place to protect a home such as "buy-back" or extra contributions. Entry into a ScottishTrust Deed is not prohibited if a person has CCJ's against them. It makes no difference whether a person is a tenant or homeowner or still living with parents. A persons credit rating is adversely affected by going into a Scottish Trust Deed. The Trust Deed usually lasts for 3 years.