How long does a Scottish trust deed last?

If you look on the web for advice about the duration of a protected trust deed most websites will explain that it lasts three years. In most cases individuals in debt will be committed to a Scottish trust deed for thirty six months but this does not account for the set up and closing time. The duration it takes for a trust deed practitioner to process the paperwork should also be thought about before signing.

The initial period when setting up a protected trust deed involves working out and putting together a list of total debts owed, assets, income (earned and benefits) and expenses. After all this data is obtained a Scottish trust deed practitioner can then advise whether a trust deed is a feasible option. This bit can be fairly quick if the dialogue is carried out over the telephone.

Before you're able to sign a Scottish trust deed you'll have to prove all the financial data you supplied is accurate by providing supporting information. This supporting documentation includes wage slips, creditor reports and statements for your bank accounts.

At this part of the procedure it is a sensible idea to meet with your trust deed representative face to face to ask them all your questions and let them explain any part you are uncertain about. The trust deed provider will confirm you grasp the commitment you're about to make.

The time between the first two meetings varies but if you are employing an efficient protected trust deed operator and have acquired all the required documentation then it is likely it will only take a few weeks. If you opt to go ahead with the protected trust deed arrangement the second meeting is when you will be able to sign all the paperwork.

After you have signed the Scottish trust deed it will be announced in the Edinburgh Gazette newspaper for your creditors to see. From this date your creditors will have just five weeks to accept or reject the terms of the Scottish trust deed proposal. If enough of your creditors agree the trust deed will gain "protection". Although this isn't definite it does occur in most instances.

This is the time in which your trust deed payments will have begun. The majority of people will have signed up for payments monthly over thirty six months. However, depending upon your circumstances, you may have been asked to agree to repayments over a longer term. Sometimes it is important for the duration to be extended in order to win creditor approval.

Other grounds for increasing the term of a protected trust deed could be due to a change in circumstances; as a result you have no other option but to lower your monthly repayments. Protected trust deeds can also be extended to enable you extra time to deal with agreed equity commitments.

Once you've finished your monthly repayments and equity commitments it ought to take the trust deed operator between 1-2 months to complete the closure process. The result of this is that you are then discharged from the trust deed.