Trust Deed Bridge of Don
Created for those experiencing out of control debt, a Trust Deed Bridge of Don is a formal, voluntary arrangement with creditors. It can wipe out personal debt through singular decreased monthly payment determined by what you are able to afford. The method is fixed-term, meaning upon the completion of the agreed period commonly 4 years every one of your leftover debt is entirely wiped out – provided all payments have been met.
When we manage to get your debt solution put together and recognised by your creditors, it will become protected. From this point on they can no longer attempt to get money from you by sending regular letters and making incessant calls. All communications are required to go through us as a medium. Any legal actions against you are also no longer a possibility. Trust Deeds are an effective way for Scots to wipe out significant amounts of money without needing to take the more severe step of entering sequestration.
To qualify, you will need to live in Scotland (or have lived there within the last year), hold unsecured debt of amounting to more than £5000, and be insolvent (unable to pay back the entire sum owed).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
We’ll also have to determine if you are able to cover a regular monthly payment that suits creditors, generally through income or assets. This usually requires the revenue to repay at least 10 pence on the pound of what was owed.
How is a Trust Deed set up?
The process of getting everything set up with us business is a series uncomplicated, achievable steps.
Step 1: Once you get in contact with our team we will look into your financial situation and familiarise ourselves with your circumstances. Once we are familiar with your financial condition we will determine what you could realistically contribute each individual month without letting you continue to struggle.
Advice from us is free and impartial. There is zero-obligation to take any more steps towards a debt solution after our discussion, and no fees apply.
Step 2: In the case where you choose to carry on, we will become your official trustee. We will offer the proposal to your creditors, explaining how your assets will be handled (your house and vehicle are secure more often than not), and inform them of how much of the outstanding debt they can expect to acquire over the agreed fixed term.
The creditors involved then have five weeks to accept the terms. If any objections we acquire do not exceed a third of the value of the debt you owe, then your solution will go forward – acquiring protected status. If creditors never react to the proposal the assumption is that they have approved the conditions.If the offer fails at this point then we can provide alternative financial advice on how is best to proceed.
Step 3: From this stage, your trust deed Debt Advice Aberdeen will have obtained protected status. Therefore, creditors are not allowed to continue to harass you, and any court measures towards you is illegal.
You are simply required to comply with conditions of the arrangement by supplying your single reduced monthly repayment.
Step 4: If after the fixed-term all of the agreed installments have been fulfilled, then any remaining debt to creditors that is till to be paid will be written off. All creditors who had been a part of the arrangement cannot make an effort to contact you for any debt that remained.
At this stage, you are welcome to move forward with your debt free life.
Advantages of a Trust Deed
- Regain control of your finances by letting us transfer your unmanageable debts into a single reduced monthly payment.
- As soon as you have signed up for the deal, your current debt is frozen throughout the arranged term – no more costs, for example interest, can be added onto the balance.
- Put a stop to creditor harassment; you can stop worrying about the telephone ringing and the letter box opening.
- Protect your most essential assets, like your motor vehicle and propery.
- All of the actual tricky administrative stuff is dealt with by us.
- Creditors are not allowed to pursue court action to get money from you.
- There will be absolutely no additional fees for our services, they are ordinarily included in your monthly repayment, or may sometimesbe taken from from the liquidation of any relevant assets.
- After all obligations have been achieved, generally after around four eyars, all leftover debts to creditors taking part in the arrangement are written off.
- After a set term, your credit rating will be reset, which grants you more freedom to deal with your finances thereafter.
Your Assets in a Trust Deed Bridge of Don
Compared to other debt solutions, a Trust Deed is a fantastic method of protecting your most vital assets while managing your debt.
Your Home – Unless you actively want to, it is incredibly extraordinary that your home is required to be liquidated. Our consultants will always hold your assets as a priority, making sure you will be able to stay in your own home.
On the other hand, there are times when you might be required to realise some equity (for example, the value of a property that has a mortgage minus any charges against it) to acquire the approval of creditors. Any equity available to you will have been worked out when you make contact with us. It may need to be converted into cash, or ‘realised’, but there are techniques of doing this without you having to lose your home. These techniques will be explained simply but in depth by our knowledgeable strategists.
Your Car – In cases where your motor vehicle is essential for your everyday needs, it is improbable that you are going to have to lose it.
However, if the vehicle is of significant worth you might need to trade it in for an older or more moderate vehicle. This will release more money that can go to creditors, so that you can have an attractive proposition. If you are utilising a Hire Purchase or some other method of financial arrangement to own your motore vehicle, then this will be considered as part of your essential monthly expenses.
Again, in cases where the car you are ‘paying up’ is expensive, then this expense may be taken into consideration.
Check if you are eligible for a debt solution by getting having a chat with one of our consultants today, and let us help you to join the tens of thousands of Scots throughout the country in taking the journey towards a debt free life.