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.
A Trust Deed is a legally binding agreement between you and your creditors to pay back a portion of the money you owe over a set period of time (usually 4 years). At the end of the agreement, if you have followed the conditions of the arrangement, any remaining debt will be written off.
Sequestration is a form of bankruptcy that is only available in Scotland, however it is very similar to the version of bankruptcy available in the rest of the UK.
Minimal Asset Process is a type of bankruptcy only available in Scotland. It is designed to give those with debts they can’t repay within a reasonable amount of time a fresh start.
