Trust Deed Kelso
Established by the Scottish government to assist individuals fighting to keep their debt manaegable, a Trust Deed Kelso is a formal insolvency arrangement which will allow you to convert several outstanding debts into one lowered monthly repayment plan. The plan occurs over a set period, normally 48 months, at the end of which any outstanding debt will be wiped out if all terms and conditions are fulfilled.
Once we have set up your monthly repayment programme you are protected against lenders. They can no longer make contact with you directly pressuring for cash, and do not have the choice to take court action against you. They can only contact us, and we will communicate all appropriate details to you. Trust Deeds were established to help the tens of thousands of Scots struggling with debt to obtain a fresh beginning without having to consider the radical step of filing for bankruptcy.
To meet the criteria, you have to live in Scotland (or have lived there within the last year), hold unsecured debt of over £5000, and be insolvent (unable to settle the entire sum you owe).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
You will also have to contribute a monthly repayment out of your salary or assets, that is enough in order to satisfy your lenders. We can establish all of this, however creditors will often require at minimum a repayment of 10 pence on each £1 that are due.
How is a Trust Deed set up?
Since we do all of the heavy-lifting and handle the vast majority of the documentation, we make the whole set up procedure really easy for you.
Step 1: The first thing to do is pick up the phone and give us a call, subsequently our consultants will get an idea of your financial situation. Afterwards, we will work out what you are able to realistically manage to contribute towards your monthly instalments.
All of the guidance our advisers will provide is absolutely free and impartial. No fees apply, and after you have listened to what we have outlined for you, we will not pressure you to explore the process any further if you do not wish to.
Step 2: In cases where you do decide to advance, debt free life will be appointed as your trustee. From this point, we will craft a deal describing for your creditors exactly how much you will be able to pay per installment , and how your assets will be handled, and how much overall they can expect to receive across the agreed period.
All of the creditors who are contacted will subsequently have 5 weeks to respond. Providing that any rejections of the proposal that we receive do not go beyond one third of the whole amount that you have to pay, then the agreement will go ahead and become protected. If we receive no answer from a creditor, it is assumed they accept the plan.
In the unfortunate event that the conditions of the contract are not accepted, our advisers will provide alternate options to help move your financial situation forward for you to consider.
Step 3: At this stage, your trust deed Debt Advice Edinburgh will have received protected status. This means creditors are not allowed to continue to harass you, and all court action towards you is out of the question.
You are simply required to comply with conditions of the contract by delivering your singular decreased regular monthly contribution.
Step 4: If after the 4 years all of the agreed obligations have been fulfilled, then any leftover debt to creditors that is till to be paid will be wiped out. All creditors who have been a part of the agreement cannot make an effort to go after you for any debt that remained.
At this stage, you are welcome to enjoy your debt free life.
Advantages of a Trust Deed
- Get back in control of your finances by permitting us to convert your spiralling debt into a singular repayment based on afford.
- After the agreement is is established, your current debt cannot rise any higher – interest and any other fees which would ordinarily apply can no longer be charged.
- Creditors will be unable to harass you with continuous daunting mail and unsolicited telephone calls.
- Important assets such as your home and car are typically safe.
- Our specialists manage each of the boring and complex forms and communications.
- Court action is no longer an option open to creditors.
- The cost of our services will be covered through the money owed in the first place – there are no advance costs to you. They are part of the monthly payment, or occasionally the sale of any assets.
- Provided you stick to the agreement and meet each payment, after four years all of the left over debt will be completely wiped out.
- After a period of time, the record of the agreement will be removed from your credit history, allowing you to rebuild it and regulate your financial situation much more easily.
Your Assets in a Trust Deed Kelso
A Trust Deed is a fantastic strategy of protecting your most vital assets, while paying off your debts due to the flexibility it offers.
Your Home – Unless you decide to do so, it is very unlikely that you’ll need to sacrifice your home. Our specialists will handle your assets with the aim of making sure you can stay in your own home.
However, it may be necessary to release some equity (the gap between the market value of the property and the debt to be paid on it) in order to satisfy creditors as part of the agreement. The equity, that we will have evaluated at the start of the procedure, may possibly need to be converted into cash as part of the deal, however there are a number ways to do this without losing the house. These techniques of protecting your home will be detailed to you by our consultants.
Your Car – Additionally, it is unusual to lose your car if you require it for work or for family commitments.
Even so, if your vehicle is brand new, or valued at a great deal of money, you might be required to swap it in for a less valuable model, which will release some money to contribute towards your repayments to creditors. If you are in some form of finance arrangement to purchase your vehicle, like Hire Purchase, it will be included in your necessary expenses.
Once again, if the price of your vehicle is extreme, then it may need to be reconsidered, but typically we are able to make sure you keep your car.
See whether you can get a debt solution by getting having a chat with our consultants now, and let us help you to join the tens of thousands of Scots across the nation in taking the journey towards a debt free life.