The main purpose of a Trust Deed is to take all of your unsecured debt, calculate how much of it can be paid within a 4 year period at an affordable rate and write off the remaining balance. Leaving you debt free.
Sequestration last approximately 12 months. If you have followed all of the instructions, then at this point you will be discharged. At this stage you may still have some financial obligations to uphold.
In Scotland, when talking about minimal assets, it is usually referring to MAP (Minimal Asset Process).
In Scotland, there are a number of debt solutions that involve portions of debt being written off.
MAP (Minimal Asset Process) is a form of bankruptcy only available to residents of Scotland.
A DAS (Debt Arrangement Scheme) is a government sanctioned debt solution, that is designed to allow you to pay off you debt over a longer period of time than stated in the original credit agreement. This means that your monthly payments reduce to a more affordable level. So who is eligible?
Sadly, there is no getting around the fact that pretty much any debt solution that you enter into will change your credit score for the worse. However, if you have already been missing repayments, then your credit score will already be negatively affected. Entering into a debt solution should be seen as making a fresh start, an opportunity to build yourself and your credit score back up.
When looking into how an IVA works, there are some features that do appear to be too good to be true, so it is understandable that some people are extremely cautious and even cynical when thinking about whether to proceed.
Whether an IVA is a good or bad idea is largely dependent on your financial circumstances. Of course, every debt solution is going to have its advantages and disadvantages. These need to be considered and weighed up so that you can make an informed choice.
A Full and Final Settlement is another name for a Debt Settlement Offer.
