Trust Deed Prestonpans
Created by the Scottish government to help those unable to keep their debt under control, a Trust Deed Prestonpans is a formal financial agreement which enables you to transform several outstanding debts into one reduced monthly payment plan. The arrangement takes place over a set period, in most cases 4 years, at the end of which any excess debt will be wiped out if all conditions have been fulfilled.
After we have established your monthly repayment plan you are protected from creditors. They can no longer contact you directly pressuring for money, and no longer have the option to take legal action against you. Your creditors only contact us, and we will communicate any relevant details directly to you. Trust Deeds were established to assist the tens of thousands of Scots fighting with debt to build a fresh beginning without having to take the serious action of entering sequestration.
To meet the criteria, you have to live in Scotland (or have lived there inside the past 12 months), have unsecured debt of amounting to more than £5000, and also be insolvent (unable to repay the whole amount you owe).
- Credit Cards
- Store Cards
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Payday Loans
- HMRC Debts
You will also need to pay a regular monthly repayment out of your earnings or assets which is sufficient to satisfy your lenders. We can establish everything, but creditors will normally need a minimum payment of ten percent of every £1 they were owed.
How is a Trust Deed set up?
The entire process of getting everything established with our business is a series of straightforward, manageable steps.
Step 1: When you get in contact with our team we will examine your finances and get an idea of the situation you are in. Once we are familiar with your situation we will find out what you can reasonably contribute each individual month without allowing you to continue to struggle.
Advice from us is free of charge and unbiased. There is zero-obligation to take any additional steps towards a debt solution after our discussion, and no service fees apply.
Step 2: In the case that you choose to move forward, our business will become your formal trustee. We will convey the terms of the agreement to your creditors, detailing how your assets are going to be handled (your home and car are secure typically), and tell them how much of the outstanding debt they can anticipate to collect over the agreed fixed term.
Your creditors then have five weeks to agree or disagree with the conditions. If any objections we acquire will not surpass 1 third of the total of the money owed, then your process can go ahead – attaining protected status. If creditors never respond to the proposal the assumption is that they have approved the terms.
Should the suggestion fail at this stage then we can provide alternate monetary advice on how is best to move forward.
Step 3: From this stage, your trust deed Debt Advice Edinburgh will have attained protected status. This means creditors cannot continue to harass you, and all court action towards you is against the law.
You are only required to comply with conditions of the contract by supplying your individual reduced monthly contribution.
Step 4: If after the 4 years all of the agreed payments have been delivered, then any leftover debt to creditors that is till to be paid will be wiped out. All creditors who have been included in the agreement cannot make an effort to go after you for any balance that remains.
At this stage, you are welcome to enjoy your debt free life.
Advantages of a Trust Deed
- Regain control of your finances allowing us to convert your unmanageable debts into a single cheaper monthly installment.
- As soon as you have signed up for the deal, your current debt is frozen throughout the arranged term – no more fees, such as interest, may be added to the balance.
- Put a stop to creditor harassment; you can stop worrying about the telephone going and the letter box opening.
- Protect your most essential assets, such as your motor vehicle and propery.
- All of the complicated administrative stuff is handled by our team.
- Creditors are not allowed to attempt court action to get money from you.
- There will be absolutely no additional fees for our expert services, they are commonly included in your monthly installment, or in some instances from the liquidation of any appropriate assets.
- After all obligations have been accomplished, generally after around four eyars, all remaining debts to creditors taking part in the agreement are wiped off.
- After a fixed term, your credit score will be totally reset, which gives you more freedom to look after your finances from then on.
Your Assets in a Trust Deed Prestonpans
Compared to other debt solutions, a Trust Deed can be an effective method of protecting your most essential assets while managing your debt.
Your Home – If you don’t actively want to, it is remarkably rare that your property is required to be sold. Our staff always hold your assets as a priority, making sure you are able to remain in your house.
Nonetheless, now and again you could be required to realise some equity (for example, the value of a property that has a mortgage minus any charges towards it) to acquire the blessing of creditors. Any equity available to you will have been estimated when you get in touch with us. It could possibly need to be converted into cash, or ‘realised’, but there are strategies of doing this without you having to lose your home. These techniques will be outlined simply but in depth by our knowledgeable consutlants.
Your Car – In cases where your vehicle is vital for your daily needs, it is improbable that you will lose it.
However, if the car is of great value you may need to swap it in for an older or more modest model. This will release additional revenue that can go to creditors, so you can have an agreeable proposition. If you are utilising a Hire Purchase or another type of financial contract to acquire your vehicle, then it will be taken as part of your essential monthly expenses.
Again, in the event the motor vehicle that you are ‘paying up’ is expensive, then this expenditure may have to be reviewed.
For more information on whether you meet the requirements to enter into a debt solution give our wonderful team a call today. We are dedicated to helping you get back in control of your finances using formal fully-legislated processes like countless other Britons across the United kingdom!