Trust Deed Bridge of Earn
Established by the Scottish government to support those unable to keep their debt in check, a Trust Deed Bridge of Earn is a formal insolvency agreement which makes it possible for you to transform multiple outstanding debts into one lowered monthly repayment plan. The plan occurs across a set period, usually 4 years, after which all outstanding debt will be waived presuming all terms are fulfilled.
As soon as your repayment system is established and becomes ‘protected’ we can bring an end to creditor harassment. They can no longer threaten you with legal actions, and, any time they have to contact you, they are required to do so us. This means no more stressful telephone calls and intimidating letters demanding cash from you. Trust Deeds exist to assist the thousands of Scots all around the country who are having debt trouble to make a new beginning – without having to submit an application for the more serious measure of bankruptcy.
To be eligible, you have to live in Scotland (or have resided there inside the previous year), hold unsecured debt of amounting to more than £5000, and also be insolvent (unable to pay back the total amount of money you owe).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
We will also need to determine whether or not you are able to cover a regular monthly repayment which satisfies creditors, generally from assets or income. This usually requires the revenue to repay at least 10 percent of what was owed.
How is a Trust Deed set up?
Since we do all of the heavy-lifting and handle the vast majority of the paperwork, we make the whole set up procedure extremely straightforward for you.
Step 1: To begin, you need to pick up the phone and get in contact, subsequently our specialists will analyse your financial situation. Afterwards, we will work out what you are able to reasonably afford to contribute towards your monthly instalments.
All of the guidance our advisers offer is free of charge and honest. No charges apply, and after you have considered that which we have told you, we will not pressure you to pursue things any further should you decide you do not not want to.
Step 2: In cases where you do opt to move forward, debt free life will be assigned as your trustee. At this point, we will craft a proposal setting out for your creditors the total amount you will be able to pay per month , and in what way your assets will be dealt with, as well as how much in total they can anticipate receiving over the agreed period.
Your creditors subsequently have 5 weeks to accept or reject the proposal. As long as any rejections of the proposal that we obtain do not meet or exceed a third of the overall amount that you have to pay, then the agreement will go ahead and become protected. If we receive no answer from a creditor, we are allowed to assume they agree with the plan.
In the uncommon event that the terms of the agreement are not accepted, our advisers can offer alternative options that can help move your finances forward for you to consider.
Step 3: At this point, your trust deed Debt Advice Edinburgh will have acquired protected status. Therefore, creditors cannot continue to harass you, and all court action against you is out of the question.
You are simply required to meet the rules of the agreement by delivering your single reduced regular monthly repayment.
Step 4: If after the fixed-term all of the agreed monthly payments have been met, then any surplus debt to creditors that is till to be paid will be wiped out. All creditors who were a part of the agreement cannot attempt to contact you for any balance that remained.
From here, you are welcome to enjoy your debt free life.
Advantages of a Trust Deed
- Get back in charge of your finances by letting us transform your spiralling debt into a single repayment based on afford.
- Once the contract is in place, your current debt cannot rise any further – interest as well as other fees which would usually apply can no longer be charged.
- Creditors can no longer burden you with constant overwhelming mail and undesired phone calls.
- Important assets like your property and motor vehicle can be secure.
- We manage all of the mundane and complex forms and communications.
- Court measures are no longer a choice open to creditors.
- The cost of our services will be covered from the money owed in the first place – there won’t be any upfront costs to you. They will be part of the monthly repayment, or from time to time the liquidation of any assets.
- If you keep to the arrangement and fulfill each and every payment, after 4 years all of the left over debt will be completely written off.
- Following a set period, the record of the arrangement will be removed from your credit history, which will allow you to restore it and take care of your finances a great deal more easily.
Your Assets in a Trust Deed Bridge of Earn
Compared to some other debt solutions, a Trust Deed can be a wonderful means of protecting your most crucial assets while sorting out your debt.
Your Home – Unless you actively want to, it is exceptionally uncommon that your home is required to be sold. Our staff always have your assets as a priority, making sure you are able to remain in your property.
Nevertheless, occasionally you might be required to realise some equity (for instance, the value of a property with a mortgage minus any charges towards it) to acheive the support of creditors. Any equity open to you will have been assessed soon after you make contact with us. It could possibly have to be converted into cash, or ‘realised’, but there are various techniques of accomplishing this without you losing your home. These techniques will be outlined simply but in detail by our experienced consutlants.
Your Car – If your car is crucial for your day-to-day requirements, it is unlikely that you will lose it.
However, if the car is of great worth you may need to trade it in for an earlier or more moderate vehicle. This will release additional money that can go to your creditors, so that you can have an attractive proposition. If you are involved in a Hire Purchase or any other kind of finance agreement to obtain your car, then it will be considered as part of your necessary monthly expenses.
Again, in cases where the car you are ‘paying up’ is expensive, then this expenditure may be taken into consideration.
Check if you can get a debt solution by getting in touch with one of our advisers now, and let us help you by joining tens of thousands of Scots across the country in taking the journey towards a debt free life.