Staying out of bankruptcy can be tough, especially in troubled economies. Countries all over the world try to do what they can for consumers. The UK prefers Individual Voluntary Arrangements (or IVAs). Scotland operates on a similar level with something called a protected deed of trust, check out Trust Deed help & Information to understand it better. Trust deeds transfer real property from one owner to a trustee, who then deals with creditors directly.This benefits include:
Advantages of the Scottish protected deeds
Payment arrangements can be worked out
The debtor may continue to have the options of self-employment. He may enter into other credit arrangements provided he continues to make good on the agreement. With all the similarities, it’s no wonder trust deeds have been called Scotland’s IVA solution. Other ways in which this option benefits you:
Keeps your name out of the paper
Nothing can harm a reputation faster than having bankruptcy aired to the public. The practice can ruin your good standing within the community and hurt your future chances of buying a home or starting your own business. Trust deeds enable you to forgo this humiliating event with an option that, if handled correctly, benefits you and your creditors.
Allows liberty wherein bankruptcy does not
Bankruptcy shuts down your financial life until you have re-established your credit. With Scotland’s IVA solution, you are still in the game. You can refinance mortgages, work as a self-employed individual, and maintain a solid presence in your community.
Demonstrates a willingness to pay
Your creditors will be more willing to work with you instead of against you. Bankruptcy shuts off creditors from collecting debts owed to them. It is a lose-lose scenario that no one wants to see happen if it is at all avoidable. That’s why when most creditors here that you are entering into a protected deed of trust, they are more willing to work with you and your trustee to establish payment terms that are manageable for you and satisfactory to them.
Offers a faster way to rebuild credit
When you have incurred so many debts that you can benefit from trust deeds, chances are your credit does not look as good as it should. That’s okay. Everyone goes through ups and downs financially. The simple act of owing does not permanently damage your credit. And while this option stays on your record for six years, it is still an indication of responsibility that doesn’t debilitate your overall rating like bankruptcy does.
By the time that you have paid your way out of a deed of trust, you are in a prime position for major purchases and helpful loans.