The question of which debts are covered by a trust deed is a common one from many of our customers. All unsecured debts are covered by a trust deed, and full compliance on this matter is a legal obligation for the debtor. To meet the full requirements for qualification for a Protected Trust Deed, all details of unsecured debts must be disclosed.
In general most creditors consider a Trust Deed Scotland to be a fair and proper way to repay the money that is owed. A favourable attitude towards certain creditors is not an option, and honesty concerning all debts is required. The single exception to this is money owed to, or debts with personal family members. Without the necessary legal documentation it is impossible to include family members in a Protected Trust Deed.
The term ‘unsecured debts’, has many relevant classifications, all of which must be divulged, examples or these are:
• Credit Cards
• Store Cards
• Payday Loans
• Overpaid Tax Credits
• Bank Loans
• Unpaid Tax Bills
• Bank Overdrafts
• Building Society Loans
• Door Step Loans
• Utility Company Loans
• Mortgage Company Shortfalls
• Finance Company Shortfalls
The final two entries on this list are not as familiar as the rest, and may require clarification. The term for a debt created by the sale of an asset, such as a house or car, where the money secured against it is more than the amount received in the sale is a ‘shortfall’.
A shortfall is only relevant if the asset that is to be sold is used as security against repayments. This could also include HP agreements or mortgages. All funds generated by the sale will claimed by the relevant creditor.
The Best Debt Option
Many people are struggling with the burden of several unsecured debts, and the best option for many of these people is a Protected Trust Deed. It is common to experience debt problems, but the biggest step is facing up to the problem and dealing with it. It is surprisingly common for people to bury their heads in the sand when they are faced with increasing debt worries, hoping that the problem will disappear, or resolve itself. When they finally face the music, the scale of their debt problem is often an unpleasant surprise to them.
The Positive Side
On the positive side this can change people’s lives for the better. Many people have found the experience empowering and life changing as they regain control of their finances. The debt may seem like a mountain to climb at first, but the professional company dealing with the fine details will bring the debtor back to being financially stable.
Take The Steps…
The steps that will be taken will help the debtor to resist taking out any future unsecured debts (if they are able), and concentrate solely on clearing all current debts with the Protected Trust Deed. Relief from incessant phone calls and ‘red’ letters is a breath of fresh air, and positive financial direction is attained.
Make the first steps towards financial freedom. Deal with debts by enquiring how a Protected Trust Deed will help towards a better life.