Trust Deed Straiton
Developed by the Scottish government to help individuals unable to keep their debt under control, a Trust Deed Straiton is a formal financial contract which permits you to transform a number of outstanding debts into one reduced monthly payment plan. The arrangement occurs across a set interval, generally 48 months, by the end of which all remaining debt will be wiped out assuming all conditions are met.
Once we have established your regular repayment programme you are protected from lenders. They can’t contact you directly in an attempt to get cash, and do not have the option to take legal action against you and your family. Your creditors only contact us, and we will pass on all appropriate information directly to you. Trust Deeds were created to aid the thousands of Scots fighting with unmanageable debt to make a fresh beginning without having to consider the severe step of declaring bankruptcy.
To meet the criteria, you will need to live in Scotland (or have resided there within the past year), have unsecured debts of amounting to more than £5000, and be insolvent (unable to pay back the complete amount you owe).
- Payday Loans
- Store Cards
- Council Tax Arrears
- Credit Cards
- HMRC Debts
- Unsecured Personal Bank Loan
We’ll also need to work out if it’s possible for you to cover a monthly payment that suits creditors, generally through assets or income. This, in most cases, requires the ability to pay back at least 10% of what was owed.
How is a Trust Deed set up?
The process of getting everything arranged with our company is a series of simple, manageable steps.
Step 1: After you contact our business we will look into your financial situation and get an idea of your circumstances. Once we are familiar with your financial condition we will work out you are able to realistically contribute each month without allowing you to carry on struggling.
Advice from us costs nothing and is unbiased. There is zero-obligation to take any further steps towards a debt solution following our discussion, and no fees apply.
Step 2: If you choose to continue, we will become your established trustee. We will offer the proposal to your creditors, detailing the way in which assets will be dealt with (your home and car are protected in most cases), and tell them how much of the outstanding debt they can expect to obtain over the agreed fixed term.
The creditors involved then have five weeks to acknowledge the terms. If any objections we acquire will not surpass 1 third of the value of the debt owed, then your process will go forward – gaining protected status. If creditors will not react to the offer it is assumed that they have accepted the conditions.
Should the proposal fail during this period then we can provide alternate monetary guidance on how is best to move ahead.
Step 3: Once your trust deed Debt Advice Edinburgh has obtained protected status, creditors cannot harass you with phone calls or constant mail. In addition, you are safe from any legal repercussions.
This will continue to be so as long as you continue to make your cheaper regular repayments, as per the terms of the agreement.
Step 4: If you do meet all of your obligations, then after the 4 years all remaining debt will be written off. It isstrictly illegal for any creditor involved in the agreement to attempt to extort any more money from you.
With no remaining debt, you can start to appreciate your debt free life!
Advantages of a Trust Deed
- We will be able to transfer your unmanageable debts into a reasonable individual repayment, dependent upon what you are able to afford.
- All charges and interest rates that would normally raise your debt will be stopped.
- The strain of frequent unwelcome phone calls and intimidating letters will be gone – will be illegal for creditors to attempt to reach you directly.
- Normally, you will be able to keep your car and remain in your house.
- The mundane paperwork and admin stuff is up to us, you can just focus on making the repayments.
- The risk of legal action will be gone altogether.
- Any costs that are connected with our services will be taken from your regular repayment or from any assets which may be liquidated – there will be zero upfront cost.
- All of the debt that remains unpaid throughout the 4 years, in other words up to eight tenths of the initial total, will be written off.
- The approach gives you an opportunity to reset your credit rating and to improve from that point, instead of letting it drop continually as you fight to meet the minimum repayments.
Your Assets in a Trust Deed Straiton
When compared with some other debt solutions, a Trust Deed is an effective way of safeguarding your most important assets while sorting out your debt.
Your Home – Unless you actively prefer to, it is incredibly extraordinary that your property is required to be sold. Our team will always hold your assets as a priority, ensuring you can remain in your house.
However, in some circumstances you may be required to realise some equity (for instance, the value of a property with a mortgage minus any charges against it) to acquire the approval of creditors. Any equity open to you will have been worked out when you reach out to us. It could possibly need to be transformed into cash, or ‘realised’, but there are tactics of doing this without you losing your home. These techniques will be explained simply but in detail by our experienced consutlants.
Your Car – In cases where your vehicle is essential for your everyday requirements, it is unlikely that you will have to lose it.
However, if the vehicle is of significant worth you may need to swap it in for an older or more moderate model. This will release extra revenue to go to your creditors, so we can draft a more agreeable proposal. If you are utilising a Hire Purchase or another type of financial contract to obtain your vehicle, then this will be taken as part of your necessary monthly expenses.
Again, in the event the car that you are ‘paying up’ is expensive, then this expenditure may have to be reviewed.
To learn more about whether you meet the requirements to enter into a debt solution give our brilliant staff a call now. We are committed to helping you get back in control of your finances using formal legislation like thousands of other Britons across the British isles!