Trust Deed is a Scottish agreement plan only available to Scottish people which helps them pay off their debts in the most efficient way possible. It is a legal agreement which is produced and processed by an Insolvency practitioner(IP). It helps simplify life for people under the weight of crippling debt. However, the question remains, can you get an IVA in Scotland? The answer is no, unfortunately IVA is not available to Scottish people, but a Trust Deed comes forward as a good substitute.
You may have heard about the whole process of a Trust Deed, along with its benefits as well as drawbacks, but many often wonder about a life after the completion of a Trust Deed. Here are some points listed below.
Update on Credit File:
After the completion of a Trust Deed, the individual is now debt free – as even the remaining debt is wiped off, so this change should be reflected in that respective individual’s credit file in about three months time.
Obtaining Credits And Effect on Interest Rates:
Rebuilding credit takes patience, depending upon the time period of an individual’s Trust Deed, the said person might find it difficult to obtain credit for the next year ot two. However, Trust Deed will ultimately make it easier and in about two years time, it will no longer show on that said individual credit card.
Crucial Steps to Take After Completion:
Trust Deed takes disposable income off of the individual for four or more consecutive years, so after it’s completion, the said individual might find himself with a lot of disposable income which more or less would push him to spend and live in luxury. This habit would promote recklessness, and the individual should practice financial planning by putting aside a a certain amount of income for emergency situations.