Trust Deed Dunbar
A Trust Deed Dunbar is a legally-binding contract designed to help those dealing with unmanageable debt. It can help you to do away with multiple debts to various creditors, via one reduced monthly repayment, determined by what you can easily afford. If at the conclusion of the agreement, which is usually set at 4 years, each of the terms and conditions have been met and no payments have been missed, then any debt that has yet to be paid off is wiped out entirely.
Once we have established your regular payment plan you will be protected from creditors. They can’t make contact with you directly in an attempt to get cash, and no longer have the choice to take court action against you and your family. Your creditors just contact us, and we will communicate any relevant information to you. Trust Deeds were created to help the tens of thousands of Scots fighting with debt to create a brand new beginning without needing to take the serious step of declaring bankruptcy.
In order to apply, you must be resident in Scotland, or have lived there inside the past 12 months, and have unsecured debts equating to a minimum of £5000 that you are unable to repay (you must be insolvent).
- Store Cards
- HMRC Debts
- Payday Loans
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Credit Cards
You will also need to pay a regular monthly repayment from your salary or assets, that is enough to satisfy your creditors. We can determine all of this, however lenders will usually need a minimum settlement of ten percent on every £1 that were due.
How is a Trust Deed set up?
Because we will handle the vast majority of the paperwork, we make the whole set up system incredibly effortless for you.
Step 1: The first thing to do is pick up the phone and give us a call, subsequently our advisers will review your financial situation. Afterwards, we will work out what you can reasonably manage to put towards your repayments.
All the guidance our consultants offer is totally free and impartial. No service fees apply, and after you have considered what we have to offer, we will not force you to pursue things any further should you decide you do not not desire to.
Step 2: If you do decide to advance, debt free life will be appointed as your trustee. At this point, we will prepare a deal outlining to your creditors precisely how much you will be able to pay each instalment , and how your assets will be dealt with, and how much in total they can anticipate receiving across the agreed period.
All of the creditors included will then have five weeks to accept or reject the proposal. As long as any rejections of the proposal which we obtain will not exceed one third of the total amount which you owe, then the agreement can go ahead and become legally-binding. If we receive no response from a creditor, we are allowed to assume they are in agreement with the conditions.
In the uncommon event that the conditions of the arrangement are not approved, then our advisers will provide alternate approaches to help advance your finances forward for you to consider.
Step 3: As soon as your trust deed Debt Advice Edinburgh has achieved protected status, creditors cannot burden you with telephone calls or constant mail. In addition, you are shielded against any legal consequences.
This will persist in being the case provided you continue to make your cheaper monthly payments, as determined by the terms of the binding agreement.
Step 4: In the event you have met all of the agreed installments, then after the four years all remaining debt will be written off. It isstrictly illegal for any creditor included in the agreement to try and extort any more money from you.
With zero remaining debt, you can begin to enjoy your debt free life!
Advantages of a Trust Deed
- Get back in control of your money by allowing us to turn your spiralling debt into a singular repayment that you can afford.
- Once your agreement is is established, your current debt cannot rise any higher – interest and any other fees that could ordinarily apply can no longer be added.
- Creditors can no longer pressure you with constant daunting letters and unwanted telephone calls.
- Important assets such as your home and car can be protected.
- We will take care of all of the mundane and complicated forms and communications.
- Legal action is no longer a possibility available to creditors.
- The cost of our services will be taken care of through the money you owe in the first place – there won’t be any upfront costs to you. They are included in the monthly repayment, or sometimes the sale of any assets.
- On the condition you keep to the arrangement and fulfill each and every repayment, after 4 years all of the debt that remains will be fully wiped out.
- After a set period, the record of the arrangement will be wiped off of your credit history, which will allow you to restore it and control your finances much more easily.
Your Assets in a Trust Deed Dunbar
When matched against other debt solutions, a Trust Deed is an effective way of safeguarding your most critical assets while addressing your debt.
Your Home – If you don’t actively want to, it is exceptionally unusual that your house is required to be sold. Our consultants always hold your assets as a priority, ensuring you can remain in your own home.
On the other hand, in some circumstances you could be required to realise some equity (for instance, the worth of a property with a mortgage minus any charges towards it) to acquire the approval of creditors. Any equity available will have been assessed when you make contact with us. It may need to be converted into cash, or ‘realised’, but there are various tactics of doing this without you losing your home. These techniques will be outlined simply but in detail by our knowledgeable advisers.
Your Car – If your vehicle is important to your everyday needs, it is unlikely that you will lose it.
However, if the motor vehicle is of significant worth you might need to trade it in for an older or more modest vehicle. This will release more money to go to your creditors, so that you can have an agreeable proposal. If you are utilising a Hire Purchase or some other type of financial arrangement to obtain your vehicle, then it will be taken as part of your necessary monthly expenses.
Again, if the car you are ‘paying up’ is particularly pricey, then this expense may be taken into consideration.
Check if you are eligible for a debt solution by getting having a chat with one of our consultants today, and let us help you by joining thousands of Scots across the nation in taking the journey towards a debt free life.