One particular debt solution, the trust deed, has been marketed especially heavily in Scotland. Debt and trust deed advisers often hear from clients who simply wish to know whether or not they qualify for a trust deed. In reality a whole range of debt solutions are available to fit differing circumstances and needs.
Most people will have heard of a debt management plan however, comparatively few people are aware of the Debt Arrangement Scheme. The Debt Arrangement Scheme (DAS) is a more formal debt management plan which conveys benefits to the debtor that cannot be afforded by a debt management plan.
The Debt Arrangement Scheme prevents unsecured creditors from taking legal action provided that the debtor maintains their side of the agreement. A Debt Arrangement Scheme client can therefore carry on meeting their obligations free from this legal worry, just like a trust deed.
A debt management plan also cannot guarantee that interest charges will be suspended or reduced. The Debt Arrangement Scheme, like a trust deed, ensures that interest on the relevant unsecured debts ceases once it is up and running.
A Debt Arrangement Scheme or a trust deed relies upon the debtor being able to commit to making regular contributions towards their debts. Due to inflation, wage stagnation and increased levels of joblessness this isn’t possible for everyone. This can cause sequestration (bankruptcy).
For some time a significant group of people in Scotland who could not afford their debts had no access to sequestration. This was because unless legal action had taken place, a creditor initiated legal action, a trust deed failed or the debtor met certain criteria, there simply was no route to bankruptcy.
Nowadays an approved person can issue a Certificate for Sequestration after they have confirmed with a debtor that they have neither the surplus income nor the assets to be able to repay their debts.
Where a debtor considers that they may have some disposable income they may be able to approach an Insolvency Practitioner (the professionals that take trust deed appointments) for the issue of the Certificate for Sequestration with a view to that IP then taking the bankruptcy appointment. The IP fees for the bankruptcy services would then be drawn from the contributions made.
If the debtor is sure that they will not have any surplus income for bankruptcy contributions they may approach a Money Adviser at their local CAB or Local Authority for the issue of the Certificate for Sequestration and then apply to the Accountant in Bankruptcy for the sequestration itself.
Of course, this extended range of options is confusing for people who are already worried enough about how they’ll pay for their essentials and bills in the coming weeks and months. A professionally qualified debt adviser will be able to work through your circumstances with you. They may suggest a trust deed, a Debt Arrangement Scheme or a debt management plan.
The Trust Deed Forum (http://www.trust-deed.co.uk/) is a debt help resource for residents of Scotland. As well as including an excellent trust deed forum, there are plentiful resources dedicated to the various debt solutions available in Scotland including a trust deed, the Debt Arrangement Scheme or bankruptcy via the Certificate for Sequestration. The website employs the services of four professionally qualified debt advisers that are available to enquirers.
The Trust Deed Forum (http://www.trust-deed.co.uk/) is a debt help resource for residents of Scotland. As well as including an excellent trust deed forum, there are plentiful resources dedicated to the various debt solutions available in Scotland including a trust deed, the Debt Arrangement Scheme or bankruptcy via the Certificate for Sequestration. The website employs the services of four professionally qualified debt advisers that are available to enquirers.
