Trust Deed Loanhead
Created by the Scottish government to help those battling to keep their debt in check, a Trust Deed Loanhead is a formal insolvency agreement which enables you to transform a number of outstanding debts into one lowered monthly instalment plan. The arrangement takes place across a set interval, ordinarily four years, after which any outstanding debt will be written off if all terms and conditions have been fulfilled.
Once we have set up your regular repayment plan you are protected against creditors. They can’t contact you directly regarding money, and do not have the option to take court action against you and your family. Your creditors just 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 with their finances to create a fresh start without needing to take the serious measure of declaring bankruptcy.
To be eligible, you have to live in Scotland (or have resided there within the past 12 months), have unsecured debts of over £5000, and be insolvent (unable to settle the complete sum owed).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
You will also have to pay a monthly repayment out of your earnings or assets that is enough to satisfy your creditors. We can confirm all of this, although creditors will commonly require a minimum repayment of 10% of each £1 they are due.
How is a Trust Deed set up?
The whole process of getting everything organised with our company is a series of simple, manageable steps.
Step 1: As soon as you get in contact with our team we will have a look at your financial situation and get an idea of your circumstances. Once we are familiar with your circumstances we will find out what you are able to reasonably pay each month without letting you carry on struggling.
Advice from us costs nothing and is impartial. There is zero-obligation to take any more steps towards a debt solution subsequent to our discussion, and no costs apply.
Step 2: Should you choose to go forward, we will become your established trustee. We will offer the proposal to your creditors, detailing the way in which assets will be managed (your home and motor vehicle are protected normally), and tell them how much of your outstanding debt they can expect to receive across the predetermined fixed term.
The creditors involved then have five weeks to acknowledge the deal. If any objections we obtain will not exceed 1 third of the total of the money you owe, then the solution will go forward – gaining protected status. If creditors do not reply to the offer it is assumed that they have accepted the terms and conditions.If the proposition fails at this point then we can provide alternate monetary guidance on how is best to continue.
Step 3: The trust deed Debt Advice Edinburgh will now have gained protected status. From here, your creditors are unable to threaten you with court action or try to get in contact through any medium.
The only thing that you have got to do is present your singular decreased regular monthly repayment; we will handle everything else.
Step 4: All going well, following the 4 years fixed term you will have paid, meaning than any of those debt which remain will be written off completely. It’s prohibited for the creditors to try to take 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
- Regain control over your financial situation by letting us transfer your unmanageable debts into a single decreased monthly installment.
- As soon as you have entered into the arrangement, your present debt is frozen during the arranged term – no more fees, including interest, may be added onto the balance.
- Put a stop to creditor harassment; you can stop worrying about the telephone going and the letter box opening.
- Protect your most important assets, such as your motor vehicle and propery.
- All of the actual complicated administrative stuff is filled out by our advisers.
- Creditors cannot carry out legal action to get funds from you.
- There are absolutely no additional fees for our services, they are typically included in your monthly payment, or in certain cases from the liquidation of any appropriate assets.
- After all installment payments have been accomplished, generally after around 48 months, all leftover debts to creditors engaged in the settlement are written off.
- After a fixed term, your credit score will be totally reset, giving you more flexibility to take care of your financial situation in the future.
Your Assets in a Trust Deed Loanhead
A Trust Deed is a fantastic strategy of protecting your most vital assets, while paying off your debts due to the versatility it offers.
Your Home – Unless you opt to, it is incredibly unlikely that you’ll have to sacrifice your property. Our consultants will deal with your assets with the intention of keeping you in your house.
Nevertheless, you might be required to release some equity (the gap between the market value of the property and the debt owed on it) in order to satisfy creditors as part of the settlement. The equity, that we will have analysed at the beginning of the procedure, might need to be converted into cash as part of the contract, but there are many ways to achieve this without losing the property. These methods we can use to protect your property will be outlined to you by our consultants.
Your Car – It is also unusual to lose your car if you require it for work or for family obligations.
Nevertheless, if your motor vehicle is brand new, or valued at a significant amount of money, you might be asked to swap it for a model of lesser value, which will release some funds to put toward your repayments to creditors. If you are in some form of finance agreement to purchase your car, such as Hire Purchase, this will be included as part of your necessary expenditures.
Once again, if the price of your vehicle is extreme, it might have to be reconsidered, but typically we can ensure you keep your car.
Find out if you are eligible for a debt solution by getting in touch with one of our advisers today, and let us help you to join the thousands of Scots throughout the country in taking the journey towards a debt free life.