Trust Deed Lothian

A Trust Deed Lothian is a legally-binding commitment intended to assist those battling debt. It can help you to do away with multiple debts to different creditors, through one reduced monthly payment plan, based on that which you can afford. If at the conclusion of your arrangement, which usually is set at 48 months, each of the terms and conditions have been fulfilled and no payments have been missed, then any debt which has not yet been paid off is wiped out entirely.

Trust Deed Lothian

When your payment plan is put in place and becomes ‘protected’ we can easily put an end to creditor harassment. They can no longer stress you with court actions, and, whenever they have to contact you, they must go through us. This means an end to unwanted phone calls and threatening letters asking for cash from you. Trust Deeds exist to support the many Scots throughout the country who are having debt problems to work towards a new start – without needing to make an application for the more extreme measure of bankruptcy.

To qualify, you must live in Scotland (or have lived there within the last year), have unsecured debt of over £5000, and also be insolvent (unable to repay the total amount of money owed).

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

We’ll also have to work out whether it’s possible for you to pay a regular monthly repayment which suits creditors, generally from income or assets. This generally requires the capability to repay at least 10 percent of the full amount owed

How is a Trust Deed set up?

Establishing the agreement is just a sequence of straightforward, easily understandable steps.

Step 1: When you pick up the phone and give us a call, our consultants will get some financial information from you and assess your situation. After we have all of the material we need, we will figure out what you can reasonably pay to each instalment without having practically nothing remaining.

Speaking to us is totally free of charge and everything we will advise you of is totally unbiased. We will not demand that you take any additional steps towards a financial solution after discussing things with us, and it will cost you absolutely nothing.

Step 2: in the event you opt to continue moving forward, then we will be assigned as your trustee. As soon as we write a proposal we will offer it to your creditors, showing how your assets will be taken care of, what monthly payment you can offer, and how much of the money owed they can expect to receive across the fixed term. Normally, your home and motor vehicle will become safe.

The creditors included then have five weeks to consider the proposition and agree to or reject the terms. The debt solution will go forward if we do receive objections, so long as they will not constitute in excess of a third of the debt owed – at this stage the arrangement will have acquired protected status. In the event that creditors do not take action at all, this will be deemed as an acceptance.

If the proposition is not accepted, then there will be additional options accessible to you which our team can outline for you in depth.

Step 3: As soon as your trust deed Debt Advice Edinburgh has acquired protected status, creditors cannot harass you with phone calls or constant mail. In addition, you are shielded against any legal consequences.

This will continue to be the case as long as you keep making your your lowered monthly payments, as determined by the conditions of the agreement.

Step 4: Provided you do meet all of the agreed obligations, then after the four years all outstanding debt will be written off. It isstrictly illegal for any creditor included in the agreement to attempt to extort any more cash from you.

With zero remaining debt, you can begin to enjoy your debt free life!

Advantages of a Trust Deed

  • Regain control over your finances by letting us convert your unmanageable debts into a single cheaper monthly payment.
  • As soon as you have entered into the commitment, your current debt is frozen during the arranged term – no more charges, including interest, can be added onto the balance.
  • Put an end to creditor harassment; you can stop worrying about the telephone going and the letter box opening.
  • Protect your most critical assets, such as your car and house.
  • All of the tricky administrative stuff is filled out by our advisers.
  • Creditors cannot attempt court action to get funds from you.
  • There are absolutely no extra fees for our services, they are typically included in your monthly repayment, or in some cases from the sale of any appropriate assets.
  • After all obligations have been achieved, usually after around 4 years, all outstanding money owed to creditors included in the arrangement are wiped off.
  • After a set term, your credit score will be reset, which grants you more flexibility to manage your financial situation from then on.

Your Assets in a Trust Deed Lothian

A Trust Deed is a fantastic strategy of protecting your most vital assets, while still being able to pay off your debts because of the versatility it will offer.

Your Home – Unless you choose to do so, it is extremely unlikely that you’ll be forced to sacrifice your property. Our debt management specialists will deal with your assets with the aim of keeping you in your house.

Nevertheless, it may be necessary to release some equity (the gap between the market value of the home and the debt owed on it) in order to satisfy creditors included in the agreement. The equity, that we will have evaluated at the beginning of the procedure, might have to be realised (converted into cash) as part of the agreement, however there are various methods to do this without losing the house. These techniques of protecting your house will be detailed to you by our consultants.

Your Car – It is also unusual to lose your motor vehicle if you require it for work or for family responsibilities.

Even so, if your motor vehicle is brand new, or valued at a great deal of money, you might be asked to swap it for a less valuable model, which will release some cash to put towards your payments to creditors. If you are in some form of finance arrangement to purchase your car, such as Hire Purchase, it will be included as part of your regular expenses.

Once again, if the cost of the vehicle is extreme, then it may have to be reconsidered, but typically we are able to make sure you keep your vehicle.