- By: JENNIFER MORVA
If you live in Scotland and you are on the verge of getting bankrupt, you might be thinking about IVA that is present in England. There is a similar thing in your country also but it is known by some other name and that is Trust Deed. The Trust Deed is very much same as the IVA and it is even more effective as the minimum time period to repay off your loan is 36 months against 60 months in case of IVA. In case of this kind of a deed you need to incur at least an amount of £15 000 pounds or more as due to your lenders.
In order to qualify for the deed you should be a Scottish resident and you should have a permanent source of income. Entering into a trust deed will involve selling off your assets and make part of the payment that you have as due to the lenders. You can choose your trustee from many of the qualified practitioners according to the charges that will suit your needs. It does not actually matter of where your creditors are located as you can qualify for the deed even if they are outside Scotland. The deed mainly involves the participation of the creditors as well as the trustees to agree upon at least three or more cases in which you owe them money. Then the trustee will negotiate on behalf of you to make the lenders lower down your rate of interest on the loans.
The time period is low because your assets are taken as mortgage and the monthly payment is on the higher side as you have permanent source of income. It is however not fixed as it can be extended after the negotiation with both the parties. Failure to repay or pay the fees of the trustees can lead to fatal consequences in the eyes of law.
Jennifer Morva has been associated with Loans. Having completed his Masters in Finance from Lancaster University Management School, he undertook to provide useful advice through his articles. To find Iva scotland , Bankruptcy information, Iva free advice visit http://www.ivabankruptcy.co.uk