Trust Deed Portobello
Established by the Scottish government to assist individuals struggling to keep their debt in check, a Trust Deed Portobello is a formal insolvency agreement which makes it possible for you to transfer multiple outstanding debts into one reduced monthly instalment plan. The agreement transpires over a fixed period, normally four years, at the end of which all leftover debt will be wiped out if all terms and conditions have been fulfilled.
Once we have set up your regular payment plan you are protected against creditors. They can no longer get in touch with you directly regarding cash, and do not have the choice to take court action against you and your family. They can only contact us, and we will pass on any relevant details to you. Trust Deeds were designed to support the tens of thousands of Scots struggling with unmanageable debt to make a fresh beginning without having to consider the severe action of entering sequestration.
In order to apply, you should be resident in Scotland, or have lived here inside the previous 12 months, and have unsecured debts equating to a minimum of £5000 which you are unable to pay back (you need to be insolvent).
- Credit Cards
- Store Cards
- 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 payment that satisfies creditors, ordinarily through assets or income. This generally requires the ability to pay back at minimum 10 pence on the pound of what was owed.
How is a Trust Deed set up?
Since we do all of the heavy-lifting and take care of the vast majority of the documentation, we make the whole set up process incredibly effortless for you.
Step 1: The first thing to do is pick up the phone and get in touch, subsequently our staff will get an idea of your financial situation. Afterwards, we will determine what you can realistically afford to put towards your repayments.
All of the guidance our agents will provide is cost-free and impartial. No costs apply, and after you have heard what we have told you, there will be zero demands on you to take things any further should you decide you do not not desire to.
Step 2: If you do opt to proceed, debt free life will be assigned to serve as your trustee. From here, we will craft an offer which will detail to your creditors exactly how much you can contribute each month , and in what way your assets will be handled, and how much in total they can expect to receive over the fixed-term.
All of the creditors included will then have 5 weeks to react. Providing that any rejections of the proposal that we receive do not exceed a third of the overall amount that you owe, then the agreement can go ahead and become legally-binding. If we receive no response from a creditor, we are allowed to assume they agree with the terms.
In the unfortunate event that the conditions of the agreement are not approved, then our advisers can provide alternate strategies that can help advance your finances forward for you to consider.
Step 3: After your trust deed Debt Advice Edinburgh has received protected status, creditors cannot bother you with phone calls or constant mail. You are also shielded against any legal consequences.
This will continue to be so provided you continue to make your decreased regular payments, as per the conditions of the deal.
Step 4: In the event you have met all of your repayments, then after the four years all remaining debt will be wiped out. It is illegal for any creditor active in the agreement to try and extort any more money from you.
With zero remaining debt, you can start to appreciate your debt free life!
Advantages of a Trust Deed
- Get back on top of your financial situation by permitting us to convert your spiralling debt into a singular repayment which you can afford.
- The moment your agreement is in place, your current debt cannot rise any higher – interest as well as other fees which would normally apply can no longer be added.
- Creditors will be unable to harass you with continuous daunting letters and unsolicited telephone calls.
- Essential assets such as your home and car are normally secured.
- We will deal with all the boring and complicated forms and communications.
- Court measures are no longer a solution open to creditors.
- The cost of our services will be settled with the money you owe in the first place – there are no upfront costs to you. They are included in the monthly payment, or occasionally the sale of any assets.
- Provided you adhere to the arrangement and satisfy each payment, after 48 months all of the remaining debt will be completely written off.
- Following a set period, the record of the arrangement will be wiped off of your credit rating, which will allow you to rebuild it and maintain your financial situation much more easily.
Your Assets in a Trust Deed Portobello
Compared to other debt solutions, a Trust Deed is a fantastic strategy for protecting your most vital assets while dealing with your financial troubles.
Your Home – If you don’t actively desire to, it is incredibly unusual that your property will have to be sold. Our consultants will always have your assets as a priority, making sure you are able to remain in your residence.
On the other hand, in some cases you could be required to realise some equity (for instance, the worth of a property with a mortgage minus any charges against it) to acquire the support of creditors. Any equity accessible to you will have been determined soon after you make contact with us. It could possibly have to be converted into cash, or ‘realised’, but there are tactics of accomplishing this without you having to lose your home. These methods will be described simply but in depth by our experienced advisers.
Your Car – If your vehicle is essential for your day-to-day needs, it is unlikely that you are going to have to lose it.
However, if the car is of significant value you may need to swap it in for an older or more modest vehicle. This will release extra money that can go to creditors, so you can have an attractive proposition. If you are involved in a Hire Purchase or some other form of financial agreement to acquire your vehicle, then this will be taken as part of your essential monthly expenses.
Again, if the car you are ‘paying up’ is expensive, then this expenditure may be taken into consideration.
If anything remains uncertain, our specialists are happy to clarify everything in detail for you. It’s time to wipe out debt once and for all and join tens of thousands of Britons all over the UK in employing a legislated debt solution to put a stop to creditor harassment!