The UK and Scottish Economies
The United Kingdom was hit quite hard with the economic crises of 2008 and 2010, but fortunately the situation was not as difficult as it was in a few Southern European countries such as Greece, Spain, Portugal, and Italy. There has even been talk of the UK leaving the Eurozone. Scotland has seen its economic forecast being downgraded as a result of the crisis.
Scottish people, in general, are known to be rather prudent with their money. However, due to the recent economic recession, many Scottish residents are being even more careful with spending their hard-earned income. Economists have failed to come to a consensus regarding the future state of the Scottish economy after possible Scottish independence – with the referendum being held in autumn 2014.
Trust deeds in Scotland have been in use since medieval times. When it comes to a trust deed Scotland, has a law that governs the possession of such an agreement – The Bankruptcy (Scotland) act 1985.
History of Trust Deeds in Scotland https://www.youtube.com/watch?v=Wi1mIqh1kOg&t=21s
Hardly a recent phenomenon, their history can be traced back to medieval Scotland and the great novelist and playwright Sir Walter Scott (author of Ivanhoe, possibly one of the world's first historical novels). He had significant business interests, and those interests caused him to become significantly indebted. He then entered into what was possibly the first Scottish trust deed to pull himself out of his debt problems, thus creating a precedent that would in turn help millions of people in Scotland today scramble out of their debts.
Trust Deeds
https://www.youtube.com/watch?v=pZ4-VmVTh0c&t=2s
The Bankruptcy (Scotland) act granted Scottish residents the right to enter into a trust deed. A trust deed remains to this day one of the most efficient and simple methods to reduce debts that are no longer affordable, and is particularly welcome in today's debt-ridden economy.
In a nutshell, a trust deed is a formal arrangement whereby debtors transfer their estate to a trustee to the creditors' benefit. It gives the debtor the opportunity to considerably reduce his/her debt burden after a three-year period (this period of time is common for government-sanctioned debt schemes in the United Kingdom). Moreover, all communication and correspondence regarding the deal and agreement is handled between the trustee and the creditor, bypassing the debtor. What essentially happens is that when a trust deed is registered as “protected”, the debtor is protected or insulated from the legal enforcement of debts. A protected trust deed means that the debtor will pay monthly installments for a period of three years. After this period, the debtor will be absolved of any remaining balance, which will be subsequently signed off.
Trust deeds are different from mortgages. Mortgages involve two parties while a trust deed involves three – the debtor, the creditor, and the trustee.
If one is significantly under a debt burden, entering into a trust deed remains one of the most effective ways to reduce some off one's shoulders. It remains one of the most manageable ways to manage debt in Scotland with Scottish Trust deeds.
