Trust Deed East Lothian

Created by the Scottish government to support individuals unable to keep their debt in check, a Trust Deed East Lothian is a formal insolvency arrangement which will allow you to transform several outstanding debts into one lowered monthly payment plan. The plan occurs across a fixed period, usually four years, at the end of which any outstanding debts will be waived assuming all terms have been fulfilled.

Trust Deed East Lothian

The instant your payment program has been set up and becomes ‘protected’ we can put an end to creditor harassment. They will be unable to threaten you with court action, and, whenever they want to contact you, they must go through us. This means no more unwelcome telephone calls and threatening letters demanding money from you. Trust Deeds exist to support the countless Scots across the country who are having financial trouble to establish a new beginning – without having to make an application for the more intensive step of filing for bankruptcy.

To be able to apply, you have to be resident in Scotland, or have lived here inside the past year, and also have unsecured debt at a minimum of £5000 which you are incapable of repaying (you must be insolvent).

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

We will also need to work out whether or not you can pay a regular monthly payment that satisfies creditors, typically from assets or income. This usually requires the capability to repay at least 10p on the pound of the full amount owed

How is a Trust Deed set up?

Because we will take care of most of the documentation, we make the whole set up system incredibly simple for you.

Step 1: The first thing to do is pick up the telephone and give us a call, subsequently our staff will evaluate your financial circumstances. Afterwards, we can find out what you can realistically afford to contribute towards your payments.

All the guidance our agents will provide is totally free and sincere. No fees apply, and after you have considered that which we have told you, there will be no demands on you to take the process any further should you decide you do not not wish to.

Step 2: If you do opt to progress, debt free life will be designated as your trustee. From this point, we will compose a deal which will detail for your creditors precisely how much you will be able to contribute per installment , and how your assets will be managed, and how much in total they can anticipate receiving across the four years.

Your creditors will subsequently have five weeks to accept or reject the proposal. So long as any rejections of the proposal that we receive do not surpass a third of the total amount which you owe, then the arrangement can go ahead and become legally-binding. If we do not receive a reply from a creditor, we are allowed to assume they agree with the conditions.

In the unfortunate event that the conditions of the binding agreement are not accepted, then our advisers will provide alternative strategies that can help move your financial situation forward for you to consider.

Step 3: Once your trust deed Debt Advice Edinburgh has attained protected status, creditors cannot burden you with phone calls or constant mail. In addition, you are shielded against any legal repercussions.

This will persist in being the case as long as you continue to make your reduced regular payments, as per the terms of the arrangement.

Step 4: Provided you have met all of your repayments, then after the 48 months all remaining debt will be wiped out. It isstrictly illegal for any of the creditors involved in the agreement to try and get any more money from you.

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

Advantages of a Trust Deed

  • Get back in control of your money by permitting us to convert your spiralling debt into a singular payment which you can afford.
  • The moment the agreement is is established, your outstanding debt cannot rise any further – interest as well as other fees that could ordinarily apply can no longer be charged.
  • Creditors will be unable to burden you with regular daunting letters and undesired telephone calls.
  • Essential assets like your property and motor vehicle can be safe.
  • Our staff will deal with all the dull and complex paperwork and communications.
  • Court measures are no longer a possibility open to creditors.
  • The cost of our services will be paid for through the money you owe to creditors – there are no upfront costs to you. They will be part of the monthly payment, or from time to time the sale of any assets.
  • If you stick to the agreement and fulfill every payment, after 48 months all of the debt that remains will be fully written off.
  • After a period of time, the record of the agreement will be wiped off of your credit rating, allowing you to rebuild it and maintain your financial situation much more easily.

Your Assets in a Trust Deed East Lothian

Compared to other debt solutions, a Trust Deed can be an effective way of safeguarding your most critical assets while addressing your debt.

Your Home – Unless you actively prefer to, it is exceptionally extraordinary that your property is required to be liquidated. Our staff always hold your assets as a priority, ensuring you will be able to remain in your residence.

Nevertheless, occasionally you could be required to realise some equity (for instance, the worth of a property that has a mortgage minus any charges towards it) in order to get the approval of creditors. Any equity accessible to you will have been determined soon after you reach out to us. It may have to be transformed into cash, or ‘realised’, but there are methods of achieving this without you having to lose your home. These techniques will be described simply but in depth by our experienced specialists.

Your Car – If your car is vital to your daily needs, it is improbable that you will lose it.

However, if the motor vehicle is of significant value you might need to swap it in for an older or more moderate vehicle. This will allow more money that can go to creditors, so that you can have an agreeable proposition. If you are utilising a Hire Purchase or another type of finance agreement to acquire your car, then this will be considered as part of your necessary monthly expenses.

Again, if the vehicle that you are ‘paying up’ is expensive, then this expenditure may be taken into consideration.