GLASGOW, SCOTLAND, October 24, 2013 /24-7PressRelease/
-- Following the announcement in September that The Scottish Government will be introducing new regulations for Protected Trust Deeds, www.TrustDeedWeb.com
offers debtors advice and guidance on how they can better deal with their debts in 2014.
The main changes taking place will be provisions set up to ensure a larger return to creditors and more regulation on the fees taken by insolvency firms. The minister for enterprise Fergus Ewing stated last month:
"The Scottish Government
is concerned that the costs of protected trust deeds, which should be a way of helping people clear their debts and seeing creditors receive their money back, are increasing by more than 25 per cent."
"The latest figures show this is happening in up to 84 per cent of cases. At the same time some trustee fees have also increased by 25 per cent over the same period.
"Creditors - and debtors - deserve a better deal from protected trust deeds and I aim to see that they get it. The changes we propose should lead to an improvement in dividends paid and by taking steps to freeze equity we will offer better protection for those who are trying to clear their debts.
"If these changes don't lead to increased performance or increased dividends then we will consider further action".
All PTD's will now be overseen by the AIB
meaning full transparency of fees from trustees administering the cases. With figures from 2012/2013 showing more than 75% of TD's resulting NO dividends to creditors at all calls from credit unions are also notable in encouraging change in legislation.
Another changes that may be of benefit to the debtor will be that rather than the typical 36 month repayment period the Trust Deed will typically be repaid over a 48 months periods. Also, being that you may enter a Protected Trust Deed with only GBP5,000 debt rather GBP10,000 means a lower entry point so more people can take advantage of the debt solution.
The new Trust Deed Calculator
can help you determine your best debt solution.