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Formal Bankruptcy known as Sequestration in Scotland
is not the only solution for people with debt problems.
At Manson & Partners we offer independent and confidential
advice, and there is no charge for the initial consultation.
A Trust Deed may be a solution.
- Nature of a Trust Deed for Creditors
It is a voluntary act made
by you. It is a Deed granted by you in favour of a Trustee (a licensed
Insolvency Practitioner) under
which your estate is conveyed, to be administered for the benefit
of Creditors and the payment of debts.
- Effect of Granting a Trust Deed
Normally all assets (excluding personal effects) are passed
to the Trustee. If the Trust Deed gains protected status, significant
protection from creditors is obtained.
- Administration of a Trust Deed
The administration of your Trust Deed requires to be done
by a qualified Insolvency Practitioner, qualified under the
Insolvency
Act 1986.
- Procedure for Pursuing this Route
Initially we would require to meet with you to consider the
best option available to you.
If we consider it appropriate,
we will discuss what a Trust Deed is and what will happen
if you sign a Trust Deed.
As it is a formal legal document and
in order for you to consider this option, we will direct you
to a solicitor. This enables you
to seek independent legal advice.
If it is considered that signing
a Trust Deed is for you, then we will proceed.
Comparison Grid - Often Asked Questions:
| Questions |
Informal Arrangement With Creditors |
Protected Trust Deed |
Sequestration |
| How long does it last? |
Indefinitely |
Usually 3 years |
3 years |
| Are the Courts involved? |
No |
No |
Yes |
| Do you get protection from Creditors against diligence? |
No |
Yes |
Yes |
| Will I have to continue until I have paid my debts in
full? |
Yes |
No |
No |
| Can creditors continue to pursue me for any outstanding
amounts? |
Yes |
No |
No |
| Can creditors arrest my wage or carry out an attachment? |
Yes |
No |
No |
| Can I continue to be self employed? |
Yes |
Yes |
Yes |
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