Money Debt and Credit

Money Debt and Credit

May 26, 2011 03:00 ET

Trust Deeds Could Offer Hope for Hard Hit Scotland

LONDON, UNITED KINGDOM--(Marketwire - May 26, 2011) - A quarterly report published by Experian released in March (30th) has revealed that three towns in recession-hit Scotland are top of the UK personal bankruptcy league – signifying that some pockets of society continue to face difficulties, despite a reduction in personal insolvency levels across the UK.

As a result, UK debt solutions firm Money Debt and Credit is warning that the recession is affecting different people in different ways and some are finding it harder to shake its effects than others.

According to the Experian figures, people living in Livingston and the Fife towns of Kirkcaldy and Glenrothes are twice as likely to face bankruptcy because of their debts as individuals living elsewhere. More than 80 households in every 10,000 are insolvent in these areas, the research shows. Despite an overall fall in number of bankruptcies across the UK last year, some areas are bucking the trend.

One solution for individuals who are finding it difficult to keep on top of their debts is to consider taking out a trust deed arrangement to their creditors.

A trust deed is a debt resolution available to some residents of Scotland owing unsecured debt levels over £8,000 and can help those struggling to meet their monthly financial commitments by writing off part of the total debt owed. Those considering a trust deed will have their assets and debts examined by an Insolvency Practitioner who will assess their suitability. If this stage of the process is satisfied the practitioner will act as a Trustee and approach the individual's creditors with an agreed fee to be paid on a monthly basis over a set period. For the trust deed to gain legally-binding status it must be approved by at least 75 per cent of the creditors. At this point the trust deed will become "protected" and legal protection from the clients creditors is then in place.

Provided that the terms of the arrangement are adhered to, a trust deed will freeze any interest and fees and will legally restrict creditors bound by the agreement from contacting the individual. Payments will continue for a fixed period – usually lasting three years – after which any outstanding debt is written off.

Scott Reynolds, Head of Debt Management for Money Debt and Credit, commented: "If you live in Scotland, have been hit hard by the recession and are struggling to make ends meet, you may want to explore the financial help available to you. While trust deeds aren't an option for everyone, they can help you plan your outgoings and provide a focus to get yourself back on your feet." With a full range of financial solutions for all our clients regardless of their situation we will find the most appropriate course of action to get individuals debt free in the fastest way possible.

Notes for Editors

Money Debt and Credit is a leading provider of financial solutions offering a one-stop service to consumers on a range of products including Debt Management Plans, IVA's, Trust Deeds, Full and Final Settlements and Secured Loans.

Contact Information