Trust Deed Monfieth

A Trust Deed Monfieth is a legally-binding commitment designed to assist all those struggling against debt. It helps you eliminate multiple debts to different creditors, via a lower monthly repayment, determined by that which you can easily pay for. If at the end of the agreement, which is usually set at 4 years, all of the terms were fulfilled and no payments have been missed, then any debt that has yet to be paid off is waived entirely.

Trust Deed Monfieth

Once we have set up your monthly repayment plan you will be protected against creditors. They can’t contact you directly in an attempt to get money, and do not have the choice to take court action against you and your family. They can only contact us, and we will pass on all relevant information to you. Trust Deeds were developed to aid the thousands of Scots dealing with with unmanageable debt to make a fresh beginning without having to consider the intensive step of entering sequestration.

To qualify, you have to live in Scotland (or have resided there inside the previous year), have unsecured debt of amounting to more than £5000, and be insolvent (unable to repay the whole amount of money owed).

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

We’ll also need to determine if you’re able to cover a monthly payment that suits creditors, normally through income or assets. This generally requires the ability to pay back at minimum 10p on the pound of the full amount owed

How is a Trust Deed set up?

The entire process of getting everything established with us business is a series basic, achievable steps.

Step 1: As soon as you get in contact with our team we will look into your finances and get an idea of the situation you are in. Once we are familiar with your situation we will work out you can reasonably pay each month without allowing you to continue to struggle.

Advice from us is free and impartial. There is zero-obligation to take any further steps towards a debt solution after our discussion, and no fees apply.

Step 2: If you choose to continue, we will become your established trustee. We will communicate the terms of the arrangement to your creditors, detailing how your assets will be managed (your property and vehicle are protected in most cases), and make them aware of how much of your outstanding debt they can expect to acquire across the agreed fixed term.

Your creditors then have five weeks to accept the terms and conditions. If any objections we obtain do not go beyond 1 third of the total of the money you owe, then your process can go ahead – earning protected status. If creditors do not respond to the proposition the assumption is that they have approved the terms.

Should the offer fail during this period then we can offer alternative financial guidance on how is best to move ahead.

Step 3: Once your trust deed Debt Advice Dundee has acquired protected status, creditors cannot burden you with telephone calls or constant mail. You are also safe from any legal consequences.

This will persist in being so provided you continue to make your cheaper regular monthly repayments, as per the terms of the arrangement.

Step 4: Provided you have met all of your repayments, then after the four years all remaining debt will be written off. It is illegal for any of the creditors involved in the agreement to attempt to get any more money from you.

With no remaining debt, you can start to enjoy your debt free life!

Advantages of a Trust Deed

  • Get back on top of your finances by allowing us to transform your spiralling debt into a singular payment which you can afford.
  • As soon as your settlement is is established, your existing debt cannot rise any higher – interest and any other fees that would normally apply can no longer be charged.
  • Creditors can no longer burden you with persistent daunting letters and unsolicited telephone calls.
  • Essential assets such as your home and car are typically secure.
  • We will deal with all the boring and complex paperwork and communications.
  • Court measures are no longer a possibility available to creditors.
  • The cost of our services will be settled by the money owed in the first place – there won’t be any advance costs to you. They are part of the monthly installment, or from time to time the sale of any assets.
  • If you stick to the arrangement and satisfy every payment, after four years all of the debt that remains will be entirely written off.
  • Following a set period, the record of the arrangement will be removed from your credit rating, which will allow you to restore it and maintain your financial situation a great deal more easily.

Your Assets in a Trust Deed Monfieth

A Trust Deed is a good method of protecting your most vital assets, while paying off your debts as a result of the overall flexibility it will offer.

Your Home – Unless you choose to do so, it is extremely unlikely that you’ll have to sell your property. Our consultants will handle your assets with the aim of making sure you can stay in your house.

On the other hand, it may be necessary to release some equity (the gap between the market value of the residence and the debt owed on it) in order to satisfy creditors as part of the arrangement. The equity, which will have been evaluated at the start of the procedure, might need to be converted into cash as part of the agreement, but there are a number approaches to achieve this without losing the property. These techniques of protecting your house will be explained to you by our advisers.

Your Car – Additionally, it is unusual to have to forfeit your vehicle if you require it for work or for family obligations.

However, if the motor vehicle is brand new, or valued at a significant amount of money, you might be required to exchange it for a model of lesser value, releasing revenue to contribute towards your repayments to creditors. If you are in some form of finance agreement to purchase your vehicle, like Hire Purchase, this will be included in your monthly expenses.

Once again, if the cost of the vehicle is extreme, then it may need to be reconsidered, but typically we are able to make sure you keep the vehicle.