Trust Deed Leith

A Trust Deed Leith is a legally-binding agreement developed to aid individuals fighting unmanageable debt. It can assist you to do away with numerous debts to various creditors, via a reduced monthly repayment, determined by that which you are able to afford. If at the end of the arrangement, which usually is set at four years, each of the conditions are fulfilled and no payments are missed, then any debt that has yet to be paid off is waived entirely.

Trust Deed Leith

After we have established your regular payment plan you are protected from creditors. They can no longer get in touch with you directly pressuring for money, and no longer have the choice to take court action against you. Your creditors only contact us, and we will relay any appropriate details to you. Trust Deeds were established to support the thousands of Scots fighting with unmanageable debt to find a fresh start without having to take the extreme measure of entering sequestration.

To be able to apply, you need to be resident in Scotland, or have resided here inside the previous 12 months, and 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

You will also have to pay a regular monthly repayment out of your earnings or assets which is good enough to satisfy your creditors. We can calculate everything, however creditors will in most cases demand at minimum a repayment of ten pence of every £1 that are due.

How is a Trust Deed set up?

The process of getting everything set up with us business is a series of simple, achievable steps.

Step 1: When you get in touch with our team we will examine your finances and get an idea of the situation you are in. Once we are familiar with your circumstances we will determine what you could realistically contribute each monthly installment without letting you carry on struggling.

Advice from us is free of charge and unbiased. There is zero-obligation to take any additional steps towards a debt solution subsequent to our discussion, and no costs apply.

Step 2: If you choose to move ahead, our business will become your established trustee. We will offer the proposal to your creditors, detailing the way in which assets will be dealt with (your property and vehicle are safe in most cases), and make them aware of how much of your debt you owe that they can be prepared to acquire across the predetermined fixed term.

The creditors involved then have five weeks to acknowledge the conditions. If any objections we acquire do not exceed a third of the value of the debt owed, then the process can go forward – attaining protected status. If creditors do not answer to the offer it is assumed that they have accepted the terms and conditions.

Should the proposition fail at this stage then we can provide alternative financial guidance on how is best to progress.

Step 3: The trust deed Debt Advice Edinburgh will now have obtained protected status. From here, your creditors cannot threaten you with court action or try to make contact in any way.

The only thing that you have to do is present your single cheaper regular monthly repayment; our staff will look after everything else.

Step 4: All going well, after the 48 month fixed term you’ll have paid, meaning than all of the debts that stay will be written off entirely. It is prohibited for its creditors to attempt to get any more money from you.

From here you will be debt free and can make the most of your financial fresh start.

Advantages of a Trust Deed

  • Take back control of your finances by letting us transfer your unmanageable debts into a single decreased monthly installment.
  • Once you have entered into the arrangement, your present debt is frozen throughout the arranged term – no more costs, like interest, can be added onto the balance.
  • Put an end to creditor harassment; you can stop worrying about the phone going and the letter box opening.
  • Protect your most vital assets, like your car and propery.
  • All of the complex administrative stuff is dealt with by our advisers.
  • Creditors cannot undertake legal action to get money from you.
  • There are zero extra fees for our expert services, they are usually included in your monthly payment, or in some cases from the sale of any appropriate assets.
  • After all payments are actually met, ordinarily after around 48 months, all remaining money owed to creditors involved in the deal are written off.
  • After a set term, your credit score will be reset, which gives you more flexibility to manage your finances from then on.

Your Assets in a Trust Deed Leith

When matched against some other debt solutions, a Trust Deed can be an effective means of safeguarding your most critical assets while addressing your financial troubles.

Your Home – Unless you actively desire to, it is exceptionally rare that your property will need to be sold. Our staff always have your assets as a priority, ensuring you can remain in your property.

Nevertheless, there are times when you could be required to realise some equity (for example, the value of a property that has a mortgage minus any charges towards it) in order to get the blessing of creditors. Any equity available will have been estimated when you reach out to us. It might have to be converted into cash, or ‘realised’, but there are many methods of doing this without you having to lose your home. These methods will be explained simply but in depth by our knowledgeable specialists.

Your Car – If your car is important for your everyday needs, it is improbable that you will lose it.

However, if the motor vehicle is of significant worth you may need to trade it in for an older or more modest vehicle. This will release extra revenue to go to creditors, so that we can draft a more attractive proposition. If you are using a Hire Purchase or some other kind of financial arrangement to own your motore vehicle, then it will be considered as part of your essential monthly expenses.

Again, in the event the vehicle you are ‘paying up’ is expensive, then this expenditure may need to be reconsidered.