Given today’s economic conditions, it is not difficult to understand why so many Scottish residents are facing financial problems. This kind of thing is compounded if you are suffering with illness, and unable to make ends meet each month. However, you may not have to consider an insolvency or bankruptcy to solve your current financial issues. A trust deed Scotland may be what you need. Combating debt when ill with a Trust Deed in Scotland might solve your problems.
Qualifying – In order to qualify for your TD or trust deed in Scotland, you must meet criteria. Also, your TD will not remove all debts. You can file for a TD if your debts are greater than your total assets. However, you should be considering drastic measures like bankruptcy. There are no financial minimum requirements. People with no income may qualify if someone else pays on their behalf.
Steps to Take – Before making a big financial decision, it is a good idea to obtain financial advice. You may check with local charities or a debt advice company. A professional service assists in all matters and makes the process simple and easy for you. They make sure that you have an insolvency practitioner or IP. The IP is your trustee and deals with creditors and your repayment.
Understanding What Happens – If you qualify and decide it is in your best interest, your trustee files the TD with the proper authorities. Once a TD is filed, creditors are prohibited from petitioning for sequestration.. However you must adhere to all of the TD terms. Your creditors have five weeks to object. If the majority agree to terms, your TD is legal. However, if you have creditors holding 1/3 or more of your total debts, they have to agree also.
Repayment – Your finances are turned over to your trustee and this person deals with your creditors. A repayment plan is established based on your income and ability to repay. You will have one affordable monthly payment for a period of three years. After that you are essentially debt free.
Real Estate – Most people that file a TD may keep their homes. However, only debts that are not secured with collateral are covered by your trust deed in Scotland. This means that houses and cars must be paid for or surrendered. This includes equity in your home, but remortgaging can be a solution to home equity.
Alternatives- If you are ill and faced with financial hardship, you may wish to negotiate with your creditors, but this does not always work. A debt management plan is possible, but this can take many years and you will still owe interest and charges. Sequestration is for five years and your home may not be protected in some cases.
Conclusion – Many people find themselves in financial dire straits due to some kind of illness or injury. Instead of insolvency or bankruptcy, a trust deed Scotland may be the answer. It may be easier to take care of your financial obligations by filing a TD, then all of the other alternatives. A debt advice company provides assistance and helps you through some very difficult situations.
When sick, combating debt with a Trust Deed Scotland isn’t hard. Let us tell you some more about trust deeds and illness.
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