Trust Deed Cowdenbeath

Introduced for individuals experiencing out of control debt, a Trust Deed Cowdenbeath is a formal, voluntary agreement with creditors. It can write off personal debt by way of one reduced monthly repayment dependent on that which you are able to afford. The procedure is fixed-term, meaning upon the conclusion of the predetermined period usually four years all of your residual debt is entirely written off – as long as all payments have been fulfilled.

Trust Deed Cowdenbeath

The instant your payment system is recognised and becomes ‘protected’ we can easily bring an end to creditor harassment. They will be unable to burden you with court action, and, any time they want to contact you, they must do so us. This means an end to stressful phone calls and threatening letters asking for cash from you. Trust Deeds exist to help the countless Scots throughout the country who have debt problems to create a new beginning – without needing to submit an application for the more serious step of bankruptcy.

In order to be eligible, you need to be resident in Scotland, or have lived there within the last calendar year, and also have unsecured debts at a minimum of £5000 which you are unable to repay (you have to be insolvent).

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

We will also need to work out whether you’re able to cover a monthly repayment that satisfies creditors, ordinarily through assets or income. This usually requires the revenue to pay back at minimum 10% of what was owed.

How is a Trust Deed set up?

Organising the agreement is just a series of straightforward, easily comprehensible stages.

Step 1: After you pick up the telephone and get in touch, our team will get some information from you and analyse your circumstances. When we have all of the material we require, we can figure out what you are able to fairly pay to every instalment without having practically nothing left.

Speaking to us is totally free of charge and everything we will advise you of is completely professional and impartial. You will be under no pressure to take any additional steps towards a debt solution after discussing things with us, and no charges will apply.

Step 2: in the event you choose to keep progressing forward, then we will be assigned as your trustee. Once we produce a proposal we will submit it to your creditors, describing how your assets are going to be dealt with, what monthly repayment you will be able to contribute, and exactly how much of the total owed they can expect to receive across the fixed term. Generally, your house and vehicle can become secure.

The creditors included then have 5 weeks to take into account the offer and either agree to or refuse the terms and conditions. The process will go ahead if we do receive objections, as long as they do not make up in excess of a third of the money owed – at this stage the contract will have acquired protected status. In the event creditors do not reply at all, this will be regarded as an acknowledgement.

If the proposal is not recognised, then there will be other tactics available to you which our staff can outline to you in detail.

Step 3: At this stage, your trust deed Debt Advice Edinburgh will have been awarded protected status. Therefore, creditors are not allowed to continue to try and contact you, and any legal action towards you is out of the question.

You are simply required to comply with rules of the agreement by supplying your single reduced monthly payment.

Step 4: If after the 4 years all of the agreed obligations have been fulfilled, then any excess debt to creditors will be written off. All creditors who were a part of the arrangement cannot endeavor to go after you for any balance that remained.

At this stage, you are welcome to enjoy your debt free life.

Advantages of a Trust Deed

  • We will be able to transfer your current unmanageable debt into a reasonable single payment, determined by what you are able to afford.
  • All fees, charges and rates of interest which would normally raise your debt will be stopped.
  • The strain of constant undesirable phone calls and daunting letters will disappear – it illegal for creditors to try and get in touch with you directly.
  • Typically, it will be possible to hold on to your motor vehicle and remain in your house.
  • The boring paperwork and admin stuff is up to us, you can just focus on making the repayments.
  • The threat of court repercussions will be gone entirely.
  • Any charges that apply for our services will be obtained out of the regular repayment or from any of your assets which may be liquidated – there is no set up cost.
  • All of your debt that is not paid off during the four years, in other words up to eight tenths of it, will be written off.
  • The procedure gives you the chance to reset your credit rating so that you can build up from there, rather than allowing it to drop continually as you battle to meet the repayments.

Your Assets in a Trust Deed Cowdenbeath

A Trust Deed is an effective method of protecting your most important assets, while still being able to pay off your debts due to the versatility it offers.

Your Home – Unless you choose to do so, it is extremely unlikely that you’ll have to sell your own home. Our advisers will deal with your assets with the intention of keeping you in your house.

Even so, you may be required to release some equity (the difference between the market value of the residence and the debt to be paid on it) to satisfy creditors included in the settlement. The equity, that we will have analysed at the outset of the process, may need to be realised (converted into cash) as part of the settlement, however there are various approaches to do this without losing the property. These techniques we can use to protect your home will be detailed to you by our consultants.

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

Nonetheless, if the vehicle is brand new, or worth a significant amount of money, then you may be asked to exchange it for a less valuable model, which will release some revenue to put towards your payments to creditors. If you are in some form of finance arrangement to purchase your vehicle, such as Hire Purchase, it will be included as part of your regular expenses.

Once again, if the value of your vehicle is excessive, then it may need to be reconsidered, but usually we can ensure you keep your vehicle.