Trust Deed Advantages and Disadvantages
It is important that you consider the advantages and disadvantages that a Trust Deed has before making a definite decision. Here we list a few of them to give you something to think about before taking your next steps with Confused Debt.
Advantages of a Trust Deed
- All of the pressure from your creditors will ease.
- Some individuals can carry on trading and retain their directorships.
- A Trust Deed will enable the debtor to pay a single fixed affordable monthly payment.
- After paying the Trust Deed for 36 months any remaining debt is usually written off.
- All interest and charges on the debt owed are frozen.
- Trust Deeds offer a lot more flexibility than bankruptcy.
- Unlike bankruptcy, Trust Deed information is not published in the local newspapers.
Disadvantages of a Trust Deed
- You will be required to release any equity in your property and assets of large value.
- Entering a Trust Deed will affect your credit rating in the short term.
- Failing to make payment according to the trust deed can lead the debtor to bankruptcy.
- If the creditors agree to the trust deed, it is recorded in Register of Insolvencies.
- The trustee will charge for his or her service.
Apart from the obvious disadvantages listed above a Trust Deed is better than you constantly worrying about your debt and who the next knock at your home might be.
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