Trust Deed Midlothian

Developed by the Scottish government to support people fighting to keep their debt under control, a Trust Deed Midlothian is a formal insolvency agreement which allows you to transform a number of outstanding debts into one decreased monthly repayment plan. The agreement takes place over a set interval, commonly four years, at the end of which any remaining debt will be written off presuming all terms are met.

Trust Deed Midlothian

When your payment plan is set up and becomes ‘protected’ we can easily bring an end to creditor harassment. They are unable to burden you with legal actions, and, any time they have to contact you, they are required to go through us. This means no more unwanted phone calls and threatening letters demanding money from you. Trust Deeds exist to help the many Scots all around the country who have found themselves facing financial trouble to work towards a new beginning – without having to make an application for the more intensive measure of bankruptcy.

To qualify, you have to live in Scotland (or have lived there within the previous 12 months), have unsecured debts of over £5000, and be insolvent (unable to pay back the entire amount owed).

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

We will also need to work out if you can pay a regular monthly repayment that satisfies creditors, typically from income or assets. This typically requires the ability to pay back at least 10p on the pound of the full amount owed

How is a Trust Deed set up?

Because we will handle the vast majority of the paperwork, we make the whole set up process incredibly easy for you.

Step 1: The first thing to do is pick up the phone and get in touch, subsequently our specialists will evaluate your financial situation. Afterwards, we will determine what you are able to realistically manage to contribute towards your monthly instalments.

All of the guidance our advisers will provide is cost-free and sincere. No charges apply, and after you have listened to that which we have outlined for you, we will not force you to take things any further if you do not want to.

Step 2: In cases where you do opt to progress, debt free life will be assigned as your trustee. From this point, we will write a deal outlining for your creditors the total amount you will be able to contribute per installment , and in what way your assets will be dealt with, as well as how much overall they can expect to receive over the four years.

Your creditors will then have 5 weeks to reply. As long as any rejections of the proposal that we obtain will not meet or exceed a third of the total amount which you owe, then the deal will go ahead and become legally-binding. If we do not receive a answer from a creditor, we are allowed to assume they accept the terms.

In the unusual event that the terms of the agreement are not approved, then our advisers will provide alternate solutions to help move your finances forward for you to consider.

Step 3: The trust deed Debt Advice Edinburgh will now have earned protected status. From here, your creditors are unable to threaten you with court action or make an effort to make contact through any medium.

All that you have got to do is provide your singular decreased monthly repayment; we will look after the rest.

Step 4: All going well, following the forty-eight month fixed term you will have paid, meaning than any of those debts that stay will be written off completely. It’s prohibited for the creditors to attempt 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

  • We will be able to convert your current unmanageable debt into a sensible single monthly installment, based on what you can pay for.
  • All charges and interest rates which would normally raise your debt balance will be stopped.
  • The strain of continual undesirable telephone calls and overwhelming letters will disappear – is illegal for creditors to try and reach you directly.
  • Ordinarily, it will be possible to hold on to your car and stay in your house.
  • The monotonous documents and admin stuff is up to us, you can just focus on making the repayments.
  • The threat of legal action will be gone entirely.
  • Any charges that apply for our services will be taken out of the regular payment or from any assets which might be liquidated – there is 0 upfront charge.
  • All of the debt that remains unpaid throughout the four years, quite simply, up to 80% of it, will be cancelled.
  • The approach gives you a chance to reset your credit history and to build up from that point, rather than allowing it to drop continually as you find it difficult to meet the minimum monthly payments.

Your Assets in a Trust Deed Midlothian

A Trust Deed is a fantastic method 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 opt to, it is extremely unlikely that you will be forced to sell your house. Our consultants will deal with your assets with the aim of keeping you in your house.

Even so, it may be necessary to release some equity (the difference between the market value of the home and the debt to be paid on it) to satisfy creditors included in the contract. The equity, that we will have worked out at the outset of the process, might need to be converted into cash as part of the agreement, however there are several ways to achieve this without having to lose the property. These methods we can use to protect your home will be explained to you by our consultants.

Your Car – Additionally, it is unusual to have to forfeit your motor vehicle if you need it for work or family obligations.

Even so, if the motor vehicle is brand new, or worth a great deal of money, you might be required to exchange it for a model of lesser value, releasing revenue to contribute towards your payments to creditors. If you are in some form of finance agreement to pay for your vehicle, such as Hire Purchase, it will be included in your monthly costs.

Once again, if the price of your car is excessive, it may have to be reconsidered, but typically we are able to make sure you hold on to your vehicle.