Typically, payment arrangements can be reached between the delinquent and the creditors. Self-employment may continue to be an option for the debtor. He may enter into additional credit agreements so long as he remains in compliance with the current agreement. Given the similarities, it is not surprising that trust deeds have been referred to as Scotland's IVA solution. Other advantages of this option include:
Removes your identity from the newspaper. Nothing is more damaging to a person's reputation than having their bankruptcy made public. This behavior can tarnish your reputation in the community and harm your future possibilities of purchasing a home or starting a business. Trust deeds allow you to avoid this humiliating event by providing an alternative that, if managed properly, will benefit both you and your creditors.
Allows for independence, whereas bankruptcy does not. Bankruptcy effectively halts your financial activities until you have reestablished credit. With the IVA solution in Scotland, you are still in the game. You are able to refinance mortgages, be self-employed, and maintain a strong presence in your community.
Demonstrates a willingness to pay, encouraging creditors to work with you rather than against you. Insolvency prevents creditors from collecting debts that are obligated to them. It is a lose-lose situation that nobody desires to occur if it can be avoided. When creditors learn that you are entering into a protected deed of trust, they are more willing to work with you and your trustee to establish payment terms that are manageable for you and satisfactory to your creditors.
Offers a quicker method for credit repair. When you have accumulated so many debts that you qualify for trust deeds, it is likely that your credit is not as excellent as it should be. That's alright. Everyone experiences economic ups and downs. The act of owing does not irreparably harm your credit score. And despite the fact that this option remains on your credit report for six years, it is still a sign of responsibility that does not harm your overall credit rating like bankruptcy does. Once you've paid off a deed of trust, you're in a prime position for significant purchases and helpful loans.
Traditional debt repayment is the most credit-friendly option, but it is not always the most practical. When you feel like you've reached the end of your financial tether, rest assured that you still have options.
" - https://www.affordablecebu.com/
