Pub Track Online - All You Need To Know About Scottish Trust Deeds
A Scottish Trust Deed is defined as a legal debt solution usually expressed in the form of a contract. The contract is between a debtor and a creditor and this form of contract is usually supervised and managed by an Insolvency Practitioner who is licensed. Scottish Trust Deeds will help you reach a compromise with your creditor and get you on the path to debt freedom.
Who Can Take Out A Scottish Trust Deed?
Scottish Trust Deeds are only available for insolvent people living in Scotland who are experiencing problems with their creditors. It falls under the Bankruptcy Scotland Actwhich was formed in 1985 and later amended in 2008. Many people find this helpful especially property owners who want to avoid the risk of losing their property when they become bankrupt. A debtor can be an individual or a partnership and they are protected from legal debt enforcements included in the trust deed.
What Will Change?
It is important to know that Scottish Trust Deeds will not change any decision that was taken before the deed; for example bank statements. The trustee can however negotiate for things like the lifting of arrestment. A lot of people ask the question will I lose my property if I enter into a Trust Deed? but the reality is that it is highly unlikey. There are certain things that must exist for you to be able to sign a deed, i.e. you must be in control of your spending and this means you do not qualify to get credit; for example you have to buy things for cash and be able to live within your means.
What Are The Advantages?
There are many advantages of entering into this type of contract. For instance, there is no interest and zero charges on your payments. The monthly instalments that you are going to pay are basically what you can afford and there will not be any direct fees that you pay but some service providers may need you to pay some charges upfront. Creditors are legally NOT ALLOWED to contact you throughout the term of the contract. It also means you are protected from any legal action and you will be in a position to manage and control your financial problems.
Is My Home At Risk From Repossession In A Trust Deed?
Although there are a lot of advantages it is important to know that in order for the trust deed to be accepted your property may remain at risk if the creditor does not include them. Your financial and credit history will be affected negatively; getting credit becomes more expensive in the future. You will also not be able to use your credit cards. It also means you will not be able to borrow money during that period until you have completed the arrangement. If you fail to meet your obligations and the trust deed fails then you may be sequestrated.
What Is The Criteria?
In order to apply for a Scottish Trust Deed you need to approach any solvency practitioner in Scotland. The only professionals who can regulate theses deeds are Insolvency Practitioners and they must be licensed. You can contact their professional body if you have any problems with them. There are certain obligations however of entering into this arrangement. When you agree to sign it means you have entered into a legally binding contract and you must cooperate with the trustee throughout the contract.
All payments must be done on time and you are not supposed to enter into other credit agreements. Any changes in terms of your financial circumstances must also be communicated to the trustee; things like unemployment for example may require the trustee to review and assess what is reasonable in terms of your monthly contribution.
Who Are The Best Scottish Trust Deed Companies?
It is a good idea to shop around for a reputable insolvency practitioner because they are the only specialists who can arrange trust deeds. You can search on the internet and do background checks just to confirm how reputable they are and someone who been long established like www.trustdeeds.net. You may also find out from family and friends, they may refer you to practitioners they have dealt with in the past. In most cases insolvency practitioners do not charge fees for setting up such arrangements like;www.scottishtrustdeed.co.uk, they usually negotiate with creditors to have the fees taken from the money paid into the trust deed. Anyone who offers the Trust Deed debt solution must be regisitered with the Office of Fair Trading and it may be a good idea to check with this government organisation before moving forward. Another good method is to look for Trust Deed Scotland reviews on sites such as Trust Pilot and Review Centre as these kind of sites give a non biased opinion in terms of customer service and credibility.
How Long Does It Take To Setup A Trust Deed In Scotland?
Setting up this arrangement normally takes between two and three months. It is important to note that your credit rating can be greatly affected for a period of about three years. It means you can not get credit and may fail to get it even in the fourth year as you will be still building your credit rating. At the end of the day it is important to note that a trust deed costs less to setup than filing for sequestration, you will also be free from interest charges and you can even remain a company director or hold a public office. In addition to that all the debt that remains after three years will be cancelled.
Lloyds Losing Streak Continues As PPI Provision Upped, Says PPI Reclaims Company Mis-sold PPI
The beleaguered banking group Lloyds has once again shown a loss, this time in half-year results, due increasing its payment protection (PPI) provision by over 30% from £3.2bn to £4.27bn, says PPI Claims company Mis-sold PPI.
In addition to the PPI scandal, the banking group is dealing with the fall out from the LIBOR scandal it was caught up in, and is involved in a number or private lawsuits in the United States. In addition, some Lloyds group members have been helping government agencies with their investigations.
Which? Chief Executive, Peter Vicary-Smith, said: "It's good that Lloyds are setting aside more money for PPI Claims - consumers should get back what they are rightly owed without hassle. The results today show that PPI is on course to become the biggest consumer financial scandal of all time, exceeding pensions mis-selling and the endowment mortgage scandal."
However, for some simply compensating the victims of the PPI scandal and straightening up its finances by streamlining operations doesn’t go far enough, believing what is needed is real and lasting change around the way the banking group and banking sector at large generates its income.
Senior lecturer in banking at Manchester Business School, Ismail Erturk, said: "Sales-driven performance targets in retail banking is causing mis-selling, and unhealthy focus on cost ratios is causing under-investment in retail banking infrastructure. Horta-Osorio...should be telling us what [he is] going to do to change this culture in retail banking."
Lloyds has had a heavy price to pay for its misdemeanours. In early summer and as part of a divestment programme, Lloyds sold off over 600 of its branches to Cooperative Bank. It is unclear at the moment what will happen to the staff currently in these branches.
However, while the increase in PPI provision looks as if Lloyds is taking its responsibilities seriously, there is a far more unpalatable reason behind the increase. Lloyd’s chief executive Antonio Horta-Osorio says that a quarter of the PPI claims the bank has received have been from people who did not have a policy with Lloyds, and the administration time and costs of dealing with these individuals and their ‘bogus’ claims is mounting.
A spokesman for Missoldppiclaims.info said: “It is good that Lloyds has recognised it needs to increase its provision to ensure all those victims of PPI mis-selling can be compensated, but it is very worrying that there are some individuals attempting to make false claims to cash in on the scandal.
“Not only is this costing the bank a considerable amount more, costs which will eventually find their way back to customers through fees, charges and interest rates on mortgages and loans, but they are also committing blatant fraud when they submit a claim knowing they have never had a policy with Lloyds at all.”
Post-Christmas Surge In Payday Loan Defaults Expected, Says Loans Company PayDayAdvances.net
Some of the country’s leading debt charities are expecting a doubling of cases relating to payday loan borrowing this Christmas, says loans company PayDayAdvances.net.
Debt charity StepChange, formerly known as the Consumer Credit Counselling Service, has reported a 300% increase in payday loans borrowers needing help over the last 24 months, from 7,841 in 2010 to 25,476 in the first three quarters of 2012. By the end of 2012 it fully expects the figures to be beyond 30,000.
According to StepChange clients with debts that include PayDay loans has increased from a relatively ‘insignificant’ 1% in the first quarter of 2009/10 to 10% in 2012. Delroy Corinaldi, external affairs director of StepChange said: "The dramatic rise in problem payday loan debt is alarming... it is therefore crucial that anyone struggling to repay what they owe at the end of the month doesn't keep rolling over their loan and racking up very high charges, but seeks advice from a debt charity instead. Otherwise, they could very quickly find themselves with a serious debt problem."
Experts believe the situation is likely to get worse over the Christmas period. Insolvency practitioners R3 recently conducted a survey which revealed around 8% of consumers were expecting to need a payday loan to get through the Christmas period and make it to January’s pay day.
Louise Brittain from R3 said: "My concern is a significant proportion of these individuals will not be able to pay off the loan in time, meaning they will need to take out another one or roll it over and could end up facing high penalty charges. We know from research last year that one in three of those who took a payday loan couldn't pay off the first loan so had to take out another one."
A spokesperson for loans company Payday Advances said: ”On the whole around 70% of loans are paid back on time and incur no problems with charges or rolling interest, but for a few people paying the loan back on time can be an issue. There will always be occassions when a loan is taken out and in the interim period something happens to make it impossible to pay it back, for example redundancy.
“Those pay day loans company that are focused on building a good business reputation will want to work with you if you tell them you cannot pay. Yes, there will be charges and interest, but in this respect a payday loan is no different to a credit card or loan if you default on a payment.”
“Payday loans are really only meant for emergencies, but problems will occur when someone takes out a loan to pay everyday bills. If you cannot pay your usual monthly expenses and take out a loan to do so, you could be starting down a debt pathway which could be very difficult to get back from.”
A Fall In Insolvencies Is A Welcome Sign for IVA Company, IVAonline.co.uk
Figures revealing a drop in insolvencies are a very welcome sign, says one of the UK’s No.1 IVA provider.
Figures from the Accountant in Bankruptcy (AiB) showed that in the first three months of the new 2011/2012 personal insolvencies had dropped by 1% over the same period in the last financial year, a clear sign that people are getting to grips with their debts before they reach a critical point of no return.
Reasons for this are varied, but it is likely that some of the decrease is due to the rise in the number of Debt Payment Programmes set up through the Debt Arrangement Scheme (DAS) and Debt Relief Order (DRO), which has increased by 30% since the same time last year.
A spokesperson for IVAonline.co.uk, one of the UKs leading providers of the IVA debt solution, said: “Any sign that the rate of insolvencies is slowing is very welcome, as is the corresponding rise in the use of the Debt Arrangement Scheme. More people are realising they are in trouble before they are forced to declare bankruptcy and have enough time to set up a Debt Payment Programme to sort out their debt.”
However, IVAonline.co.uk believes that sometimes the path to becoming debt-free can be hard to see when faced with debt that seems overwhelming.
“There are many steps that can be taken before someone should consider insolvency, but debt has the unpleasant effect of narrowing your vision so much through fear that you cannot see clearly that you have more choices than you think.”
“For anyone in debt the first step to becoming debt-free is to try and rebalance household expenses with income. Look at your household expenses and decide what are necessities and what are luxuries. Sometimes the smallest changes are the ones to have the greatest effect. For example Sky TV and mobile contracts are perhaps the easiest places to start by reducing the packages to lower costing ones. Have a look at how much money is being spent on eating or drinking outside the home – a luxury coffee every day on the way to work could add up to nearly £600 a year.”
“At the same time as trimming household expenses, find ways to increase the household income, either by working overtime or taking a second job in the evenings or weekends. Also make sure you sure you are not entitled to any benefits that you haven’t been claiming.”
If you still can’t make ends meet talk to your lenders. It may be that they are able to help reduce your expenses by freezing interest or changes, perhaps even by giving you a payment holiday for a few months. You never know unless you ask.”