Trust Deed Huntly
Introduced by the Scottish government to assist individuals unable to keep their debt in check, a Trust Deed Huntly is a formal insolvency agreement which allows you to transform several outstanding debts into one decreased monthly payment plan. The arrangement takes place over a fixed interval, generally 48 months, by the end of which any excess debts will be written off if all terms and conditions are fulfilled.
After we have put in place your regular payment programme you are protected from lenders. They can no longer get in touch with you directly pressuring for money, and no longer have the option to take legal action against you. Your creditors just contact us, and we will communicate all appropriate details to you. Trust Deeds were created to help the tens of thousands of Scots struggling with with unmanageable debt to make a brand new start without having to consider the serious step of filing for bankruptcy.
To be eligible, you will need to live in Scotland (or have lived there within the previous 12 months), have unsecured debt of over £5000, and be insolvent (unable to settle the whole amount of money owed).
- Credit Cards
- Store Cards
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Payday Loans
- HMRC Debts
We will also have to work out whether you’re able to cover a regular monthly payment that satisfies creditors, usually from income or assets. This ordinarily requires the revenue to pay back at least 10 percent of what was owed.
How is a Trust Deed set up?
Putting together the agreement is just a series of straightforward, easily understandable stages.
Step 1: After you pick up the phone and give us a call, our team will get some financial information from you and review your position. Once we have got all of the data we need, we can work out what you are able to realistically contribute to each instalment without having practically nothing to live on.
Contacting us is completely cost-free and everything we will explain to you is utterly impartial. We will not demand that you take any additional steps towards a financial resolution after talking with us, and no charges will apply.
Step 2: If you decide to keep progressing forward, then we will be assigned as your trustee. After we draw up a deal we will convey it to your creditors, detailing how your assets are going to be taken care of, what monthly payment you will be able to contribute, and exactly how much of the debt owed they can expect to recoup over the fixed term. In most instances, your house and vehicle will become secure.
Your creditors then have 5 weeks to consider the proposition and either agree to or decline the terms and conditions. The process will go ahead if we do receive objections, so long as they do not comprise more than one third of the debt you owe – now the arrangement will have obtained protected status. Should creditors not reply at all, this will be thought of as an validation.
In rare cases where the proposition is not approved, then there will be other options available which our staff can outline for you in depth.
Step 3: Once your trust deed Debt Advice Aberdeen has achieved protected status, creditors cannot harass you with phone calls or constant mail. In addition, you are shielded against any legal repercussions.
This will continue to be so provided you continue to make your cheaper regular repayments, as determined by the conditions of the settlement.
Step 4: In the event you have met all of the agreed repayments, then after the agreed term all remaining debt will be written off. It isstrictly illegal for any of the creditors included in the agreement to try and extort any more cash from you.
With zero remaining debt, you can start to appreciate your debt free life!
Advantages of a Trust Deed
- Take back control of your financial situation by letting us transfer your unmanageable debts into a single lowered monthly payment.
- As soon as you have entered into the commitment, your present debt is frozen throughout the arranged term – no more charges, such as interest, may be added onto the total.
- Put a stop to harassment; stop worrying about the telephone ringing and the letter box opening.
- Safeguard your most critical assets, such as your motor vehicle and propery.
- All of the actual tricky administrative stuff is managed by our team.
- Creditors cannot attempt court action to get money from you.
- There will be zero extra fees for our expert services, they are normally included in your monthly repayment, or in some cases from the sale of any appropriate assets.
- After all payments are actually accomplished, typically after around 4 years, all outstanding money owed to creditors taking part in the settlement are wiped off.
- After a fixed term, your credit score will be reset, which gives you more flexibility to deal with your financial situation in the future.
Your Assets in a Trust Deed Huntly
When matched against various other debt solutions, a Trust Deed can be an effective strategy for protecting your most critical assets while addressing your financial troubles.
Your Home – If you don’t actively prefer to, it is extremely unusual that your house will have to be liquidated. Our advisers will always have your assets as a priority, ensuring you are able to stay in your house.
On the other hand, in some instances you could be required to realise some equity (for example, the value of a property with a mortgage minus any charges towards it) in order to get the blessing of creditors. Any equity available will have been assessed soon after you get in touch with us. It might have to be converted into cash, or ‘realised’, but there are numerous methods of doing this without you losing your home. These methods will be outlined simply but in detail by our experienced strategists.
Your Car – In cases where your vehicle is important for your everyday requirements, it is improbable that you are going to lose it.
However, if the vehicle is of significant worth you may need to trade it in for an older or more modest vehicle. This will allow additional money that can go to your creditors, so you can have an agreeable proposal. If you are involved in a Hire Purchase or some other type of finance agreement to acquire your car, 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 cost may be taken into consideration.
Check if you can get 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.