Trust Deed St Andrews
Established by the Scottish government to help all those struggling to keep their debt manaegable, a Trust Deed St Andrews is a formal financial contract which permits you to convert multiple outstanding debts into one reduced monthly payment plan. The arrangement takes place across a fixed period, generally four years, at the end of which all leftover debt will be written off if all terms and conditions are fulfilled.
Once your payment program has been put in place and becomes ‘protected’ we will put an end to creditor harassment. They cannot stress you with legal action, and, each time they have to contact you, they are required to go through us. This means no more unwanted phone calls and threatening letters asking for money from you. Trust Deeds exist to assist the thousands of Scots across the nation who have found themselves facing financial problems to work towards a fresh beginning – without having to submit an application for the more intensive step of bankruptcy.
To meet the criteria, you must live in Scotland (or have lived there within the previous 12 months), have unsecured debts of over £5000, and be insolvent (unable to repay the entire amount you owe).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
We will also need to work out whether you are able to cover a regular monthly payment which satisfies creditors, usually from income or assets. This, in most cases, requires the ability to repay at minimum 10 pence on the pound of the full amount owed
How is a Trust Deed set up?
The process of getting everything established with our business is a series basic, achievable steps.
Step 1: As soon as you get in touch with our business we will investigate your financial situation and get an idea of the situation you are in. Once we are familiar with your situation we will find out what you could reasonably contribute each individual monthly installment without letting you continue to struggle.
Advice from us is free of charge and impartial. There is zero-obligation to take any further steps towards a debt solution subsequent to our discussion, and no charges apply.
Step 2: In the case where you choose to move ahead, our business will become your formal trustee. We will communicate the conditions of the arrangement to your creditors, outlining the way in which assets are going to be managed (your house and motor vehicle are secure generally), and make them aware of how much of your debt you owe that they can anticipate to collect across the predetermined fixed term.
Your creditors then have five weeks to agree or disagree with the terms and conditions. If any objections we receive do not surpass one third of the total of the money owed, then the solution will go ahead – accomplishing protected status. If creditors never react to the proposal it is assumed that they have accepted the conditions.If the suggestion fails at this point then we can provide alternative financial guidance on how is best to progress.
Step 3: Once your trust deed Debt Advice Edinburgh has achieved protected status, creditors cannot pester you with phone calls or constant letters. In addition, you are shielded against any legal repercussions.
This will continue to be the case as long as you keep making your your cheaper regular repayments, as determined by the conditions of the agreement.
Step 4: Provided you do meet all of the agreed payments, then after the four years all outstanding debt will be written off. It isstrictly illegal for any creditor active in the agreement to try and get any more cash from you.
With no remaining debt, you can start to enjoy your debt free life!
Advantages of a Trust Deed
- Take back charge of your financial situation allowing us to transfer your unmanageable debts into a single decreased monthly installment.
- As soon as you have signed up for the deal, your existing debt is frozen during the arranged term – no more charges, such as interest, can be added onto the total.
- Put a stop to creditor harassment; stop worrying about the telephone going and the letter box opening.
- Protect your most critical assets, like your motor vehicle and propery.
- All of the tricky administrative stuff is filled out by our team.
- Creditors cannot pursue legal action to get money from you.
- There will be absolutely no additional fees for our services, they are typically included in your monthly installment, or in some instances from the sale of any relevant assets.
- Once all installment payments are actually achieved, generally after around 4 years, all leftover money owed to creditors involved in the agreement are waived.
- After a fixed term, your credit score will be reset, giving you more flexibility to look after your finances thereafter.
Your Assets in a Trust Deed St Andrews
Compared to various other debt solutions, a Trust Deed can be an effective method of protecting your most crucial assets while dealing with your debt.
Your Home – Unless you actively want to, it is extremely extraordinary that your home is required to be liquidated. Our staff always have your assets as a priority, ensuring you can remain in your home.
Nevertheless, sometimes you could be required to realise some equity (for instance, the worth of a property with a mortgage minus any charges towards it) in order to get the support of creditors. Any equity available to you will have been estimated soon after you reach out to us. It may need to be converted into cash, or ‘realised’, but there are techniques of accomplishing this without you losing your home. These methods will be explained simply but in depth by our experienced consutlants.
Your Car – If your vehicle is crucial to your daily requirements, it is improbable that you are going to lose it.
However, if the car is of great worth you may need to trade it in for an earlier or more modest model. This will allow extra money that can go to creditors, so that we can draft a more agreeable proposal. If you are utilising a Hire Purchase or some other kind of financial arrangement to obtain your motore vehicle, then it will be considered as part of your essential monthly expenses.
Again, in cases where the car you are ‘paying up’ is expensive, then this cost may be taken into consideration.
For more information on whether you qualify to enter into a debt solution give our brilliant debt squad a call now. We are committed to helping you get back in control of your finances using formal fully-legislated processes like thousands of other Britons throughout the British isles!