In Scotland, people who are indebted can get help through a Trust Deed. A trust deed is an agreement upon assets of the indebted person to which he agrees to be transferred to a trustee but the benefit from the asset or merchandise is to be yielded by the creditor for the time period of the trust deed. This trust deed is for the mutual benefit of the creditor and indebted. On one side it protects the right of the indebted person allowing him to pay the debt while being protected from any law action against them.
Trust deed is a legal agreement in Scotland which lasts for 4 years. For the duration of the trust deed, the indebted person is protected from the atrocities of the creditor in form of psychological, financial and legal actions. This trust deed is only for the residents of Scotland who have gained residency of more than 6 months in the country.
The financial benefit provided by a trust deed is that it prevents multiple payments around a month. The indebted person has to pay off the debt in once monthly payment. Another benefit of knowing of what is a trust deed is that the house of the debtor is saved from legal occupation by the creditor if he fails to pay the debt.
This protection is conditioned by the fact that the indebted person must abide by the terms written in the trust deed and comply with the rules and regulations. In some cases, getting involved in a trust deed can have social and financial consequences, for example, the indebted person may lose or jeopardize his job if he is employ of a legal firm or financial company.
In the situation, the indebted person fails to abide by the terms of the trust deed, there may be dire consequences like bankruptcy.