Becoming a debtor is not a sin, but failing to clear the debt is a sin in the court of law. Those who seek Trust Deed Help & Advice needs to understand this logic before becoming debtors. However, some things happen in our life when becoming a debtor is inevitable for many people. But individuals who live in Scotland are considered to be luckier as they have the option to come out of debts through entering into trust deeds. More details about these trust deeds can be found on the website law360.com, which can be handy for the people who are eager to consolidate their debts into an affordable repayment plan which is legal in Scotland.
How People Become Victim To Debt Traps?
Money lenders who offer loans to people have different faces while operating in a competitive environment. These money lenders who offer loan to everyone at higher interest rates are found to be too soft in order to lend the money to the needy individuals who become their clients or debtors. When a debtor is unable to repay the loan due to several genuine reasons, these money lenders have some deep rooted policies in recovering the money in the most unscrupulous manner. They also act rudely in their own way before approaching the court of law. They also know that they cannot escape from the law for charging exorbitant interest rates from the debtors, which more often makes the debtors get into depression and some even try to commit suicides. Such situation happens in every country. However, the story is different in Scotland where the concept of trust deeds works well in favour of such frustrated debtors.
Trust Deeds- A Better Option
Undoubtedly, trust deed seems to be a better option for the debtors who are unable to pay their unsecured loans from the private money lenders at higher rates of interests. Trust deeds work as an alternative for the debtors to avoid the situation of becoming bankrupt. These deeds are issued by the trustees who operate the trust. In general, these trustees are Bankruptcy Practitioners who are knowledgeable about the legal aspects of financial dealings. Once a debtor enters into a trust deed, he can pay the repayment at the affordable cost for a period of agreed time which varies from one year to three years. Once the repayment is done the debtor can become debt free.
Who Is Eligible For Entering A Trust Deed?
Trust deeds in Scotland are not found suitable for every debtor. One has to fullfill some qualifying criteria in order to engage in the trust deed offered by some of the reputed trustees who are generally engaged as Insolvency Practitioners in Scotland. To get into a trust deed, a debtor has to be a permanent citizen of Scotland and should be in employment with enough disposable income to repay the regular monthly bills and other family expenses. All these details will be checked and verified by the creditors before signing the Trust Deed by both the parties. Once signed and effective these trust deeds become the protected trust deeds in the eyes of the law.