If you have been wondering what is trust deed then I would like to share what is trust deed.
What is a ‘Trust Deed’?
A trust deed is a notice for the release of merchandise to a buyer from a bank as well as with the bank retaining the ownership title to the released assets. The bank remains the owner of the merchandise, although, the buyer is allowed to hold the merchandise in trust for the bank, for manufacturing or sales purposes. The buyer of merchandise is subject to a trust deed that is required to maintain the merchandise as well as any proceeds of the sale of the merchandise including for remittance to the bank. Through this way, the buyer is permitted to use the merchandise for his business activities, along with the bank’s interest in the ownership of the merchandise is also protected.
A trust deed is a formal as well as a legally binding document that transfers part or all of the debtor’s assets or money and property to a trustee to manage for the benefit of the creditors for a period of time. The trustee will possibly ask the debtor to pay a specific amount of money to them from their income on a regular basis that is similar to an informal debt management program or DAS. This is a very private arrangement between a debtor and creditors.
The advantages of a trust deed for the debtor are the following:
- A trust deed avoids the greater expense, formality and stigma of formal bankruptcy
- There are no penalties or investigations regarding any offences and fewer disqualifications
The Disadvantages of a trust deed for the debtor are the following:
Any creditor who objects to the terms of the trust deed can still request the debtor’s bankruptcy with keeping in mind that the trust deed is recorded in the Register of Insolvencies as a protected trust deed (PTD). In some cases, the trustee can also request sequestration as well.
Signing a trust deed has serious consequences, for example, you might also lose your home
What is a protected trust deed?
- To become protected, a trust deed must meet certain requirements for it.
- The trustee must be a qualified insolvency practitioner as well
- The trust deed must transfer all assets possessed by the person that would be taken over by the trustee as if the debtor had been sequestrated and
- It must be properly advertised in the Edinburgh Gazette along with the trustee must notify all known creditors
A trust deed usually becomes a protected if it meets all these conditions unless the majority in number or one-third in value of the creditor’s objects in writing is within five weeks of its advertisement in the Edinburgh Gazette. A trust deed is binding or agreement on all creditors when it becomes protected which is similar to DAS in that it stops creditors from seeking to enforce their debt by diligence or sequestration. Money advice and expert professional advice is essential if you are considering to create a trust deed.
A deed of trust has a crucial advantage over a mortgage, from the lender’s point of view as if the borrower does not pay the loan then the trustee has the power to sell off the property on behalf of the beneficiary.
Insolvency resulting from an IVA can be effectively resolved with the help of Creditfix IVA services. When you are pushed to the position to declare insolvency, you need to have patience and consult the authorized insolvency practitioner. This is due to several reasons. Insolvency could mean severe legal action against you. Even though people say that declaring insolvency is the easiest way of getting out of a debt trap, practically speaking it is not so. If you have any property the lending company may decide to sell it or remortgage it to recover the outstanding loan sum. Even if the net value of your asset is several times more than the loan sum, you may not get any returns since the lending company may choose to impose fines on the loan sum, interest and other overheads.
Even if your legal advisor is able to get a court order for refunding the excess sum from the property to you, it could take several years before you could get to see the sum being deposited into your bank account. Meanwhile there are risks of losing your credit ratings, social and professional reputation and the bank account you are currently holding. Compared to all these risks it is always better for you to choose Creditfix IVA and get protection from insolvency and legal actions against you.
Creditfix IVA dealings with the creditor
The insolvency practitioner at Creditfix IVA will take the complete responsibility of communicating with your creditor(s) and convincing them to agree for the IVA instead of opting for insolvency and legal course. This is as much beneficial to the creditors as for you.
- They get a legal commitment from you for the repayment of outstanding loan principal, though they have to let go of the interest and the other overheads. Your advisor at Creditfix IVA will convince them that they end up getting more returns with this option than with the legal means.
- The creditors have the option to cancel the IVA in case you are unable to make the repayment according to legal commitment. If you have any property they can remortgage it and make arrangements to recover the loan sum. In case of non conformation to IVA from your end, they can also opt for imposing the interest and other overheads on the outstanding loan sum minus the IVA sum you have already paid.
Creditfix IVA services for you
- You get protection from insolvency and legal actions that could be initiated against you.
- You get complete exemption from the interest and the other overheads which you should have had to pay otherwise.
- Creditfix IVA ensures that you don’t need to have ownership of any property in order to get the creditor to agree for the IVA. You need to have a regular and reliable income which can meet the minimum repayment requirements every month.
- If you are an independent trader or a business person you will be free to continue with your business or trade without running into the risk of having to mortgage it for your loan.
Lead generation and sales conversion are the primary goals of websites for insurance agents. These two goals can be achieved successfully when the insurance websites are able to attract visitors regularly. Enhanced traffic could increase the probability ratio of leads into sales. However there are certain fundamental parameters which these websites for insurance agents should follow for sales conversion to happen.
Awareness Creation with Insurance Agent Marketing
While selling a tangible product like toothpaste, the strategies of marketing are simple and product centric in nature. For selling an intangible product like the insurance plan the strategies of marketing for insurance agencies need to be customer centric.
- Insurance for educational plan is one such example. It should consider the child’s primary education, high school, graduation and higher education as the primary criteria. The second step is to consider the current financial situation of the parents. The third step is to explain about the premium plans and their flexibility. Selection option should be given to the client. Once the potential clients have understood the details in these steps, they can be introduced to the specific products offered by the insurance agency. This will convince the clients about the benefits of the plan. The insurance websites should be able to provide reviews written by existing satisfied customers who have already bought these insurance plan products. This is one of the ways in which potential leads can be generated and converted into sales.
- Similarly the other product details could be split into awareness creation, detailing of benefits, product detailing, comparison with other products and existing customer reviews. This is known as non invasive way of insurance agent marketing. The clients will be convinced about their need for an insurance product even before the agencies start talking about their specific products.
Marketing Segmentation in Social Media for Insurance Agents
Social media is one of the fastest growing platforms for insurance agent marketing today. Before implementing the strategies of marketing for insurance agencies here, there is a need to segment the market according to the product categories. This will increase the probability of lead generation and sales conversion.
- Market can be segmented based on general conditions like age, gender, profession, family size, average monthly income, goals in life etc. This requires detailed social media analysis. Google and other companies offer insurance websites specific packages for analytics and other marketing lead generation tools. They can be incorporated into the websites for insurance agents. A main segment can be split into sub segments which make it easy to implement insurance agent marketing policies. The websites for insurance agents can be supported with a backend database which stores the details of potential clients. This can be linked to a front end program which manages the insurance agent marketing and follow up programs.
- Once the potential clients are contacted and briefed about the insurance product plans, follow up action is required. Regular contact through emails, messages and phone (if the client has no objection) helps in establishing a rapport. The product sale may take some time to realize, but effective campaigning in the social media for insurance agents can make it happen.