Trust Deed Turriff

Introduced by the Scottish government to support people battling to keep their debt in check, a Trust Deed Turriff is a formal financial arrangement which will allow you to transfer numerous outstanding debts into one reduced monthly repayment plan. The agreement transpires over a fixed period, in general 4 years, by the end of which all excess debt will be waived presuming all conditions have been met.

Trust Deed Turriff

After we have established your monthly repayment programme you are protected against lenders. They can no longer contact you directly pressuring for cash, and no longer have the option to take court action against you and your family. Your creditors only contact us, and we will relay any relevant information directly to you. Trust Deeds were created to support the tens of thousands of Scots struggling with with debt to build a brand new start without having to consider the intensive step of declaring bankruptcy.

To be able to apply, you need to be resident in Scotland, or have lived there within the last year, and also have unsecured debts at a minimum of £5000 that you are not able to repay (you need to be insolvent).

  • Credit Cards
  • HMRC Debts
  • Store Cards
  • Payday Loans
  • Overdrafts
  • Unsecured Personal Bank Loan
  • Council Tax Arrears

We will also need to determine if you’re able to cover a regular monthly repayment that suits creditors, ordinarily through assets or income. This usually requires the ability to repay at least 10% of the full amount owed

How is a Trust Deed set up?

Since we do all of the heavy-lifting and take care of most of the documentation, we make the whole set up system very simple and easy for you.

Step 1: To begin, you need to pick up the telephone and get in contact, subsequently our experts will get an idea of your financial circumstances. Afterwards, we can work out what you can reasonably afford to contribute towards your repayments.

All the advice our consultants offer is totally free and honest. No charges apply, and after you have heard what we have told you, there will be no pressure on you to explore the process any further should you decide you do not not wish to.

Step 2: In the event that you do decide to advance, debt free life will be assigned as your trustee. From this point, we will produce an offer setting out for your creditors the total amount you can contribute each instalment , and in what way your assets will be dealt with, as well as how much overall they can anticipate receiving over the agreed period.

All of the creditors included subsequently have five weeks to accept or reject the proposal. As long as any rejections of the proposal that we obtain do not surpass a third of the total amount which you owe, then the plan will go ahead and become protected. If we do not receive a answer from a creditor, we are allowed to assume they agree with the deal.

In the unusual event that the conditions of the binding agreement are not accepted, then our advisers can offer alternative options to help advance your financial situation forward for you to consider.

Step 3: Once your trust deed Debt Advice Aberdeen has received protected status, creditors cannot burden you with telephone calls or constant mail. You are also shielded against any legal consequences.

This will persist in being so as long as you continue to make your decreased regular monthly installments, as per the terms of the arrangement.

Step 4: Provided you have met all of the agreed repayments, then after the 4 years all remaining debt will be wiped out. It isstrictly illegal for any of the creditors active in the agreement to try and extort any more money from you.

With zero remaining debt, you can start to appreciate your debt free life!

Advantages of a Trust Deed

  • Regain charge of your finances by letting us convert your unmanageable debts into a single decreased monthly installment.
  • Once you have entered into the contract, your current debt is frozen during the arranged term – no more fees, for example interest, can be added onto the balance.
  • Put an end to creditor harassment; stop worrying about the telephone ringing and the letter box opening.
  • Safeguard your most critical assets, such as your vehicle and home.
  • All of the difficult administrative stuff is dealt with by our advisers.
  • Creditors are not allowed to carry out court action to get cash from you.
  • There are no extra fees for our expert services, they are commonly included in your monthly repayment, or in certain cases from the sale of any appropriate assets.
  • Once all installments have been met, normally after around four eyars, all remaining money owed to creditors included in the arrangement are written off.
  • After a set term, your credit rating will be reset, which grants you more flexibility to control your finances from then on.

Your Assets in a Trust Deed Turriff

A Trust Deed is a great strategy of protecting your most vital assets, while paying off your debts because of the flexibility it offers.

Your Home – Unless you choose to do so, it is extremely unlikely that you’ll need to sell your home. Our debt management specialists will deal with your assets with the aim of making sure you can stay in your own home.

Even so, it may be necessary to release some equity (the difference between the market value of the home and the debt owed on it) in order to satisfy creditors as part of the contract. The equity, that we will have worked out at the start of the procedure, might have to be converted into cash as part of the contract, but there are numerous ways to do this without losing the property. These techniques of protecting your property will be explained to you by our consultants.

Your Car – It is also unusual to lose your vehicle if you need it for work or family responsibilities.

On the other hand, if the vehicle is brand new, or worth a significant amount of money, then you may be asked to swap it in for a less valuable model, which will release some money to put towards your payments to creditors. If you are in some form of finance agreement to purchase your vehicle, such as Hire Purchase, it will be included as part of your monthly expenditures.

Once again, if the value of the vehicle is extreme, then it may need to be reconsidered, but generally we are able to make sure you hold on to your vehicle.