A trust deed is nothing but an insolvency solution which is made between the borrower and the creditor by a third party known as trustee. Residents of Scotland are eligible to apply for a trust deed. The whole procedure is looked after by an insolvency practitioner. In order to file for a trust deed you need to be eligible for it. Given below are some of the criteria:
- You must be a resident of Scotland.
- The outstanding amount of unsecured loan must be a minimum of £10,000.
- The amount which sums up should be from a minimum of three creditors.
- The creditor would set a minimum amount for repayment which the borrower has to agree.
When you apply for a trust deed you first have to get in touch with an insolvency practitioner. The steps to apply for a trust deed are simple. Given below are the steps:
- Since it would involve money and creditors it is better to take the advice of experts in this case. They would go through all the documents which would include your financial condition and also the amount you owe to the creditors. This expert is the insolvency practitioner.
- You will have to make the list of your monthly income and the expenses and also the total amount which is left to repay to the creditors.
- The insolvency practitioner will look for a trustee who will then negotiate with the creditors about the whole situation. The creditors will then give a minimum amount which is compulsory to repay. This amount will also be negotiated by the trustee.
- When this is done the trust deed will be prepared and the signatures of all the parties will be taken. The trustee will ensure that you pay the money back in the promised time to the creditors.