Trust Deed Trinity
A Trust Deed Trinity is a legally-binding agreement designed to aid those dealing with unmanageable debt. It helps you to do away with numerous debts to different creditors, via a reduced monthly repayment, based on what you are able to pay for. If at the conclusion of the agreement, which usually is set at 4 years, each of the terms are fulfilled and no payments are missed, then any debt which has not yet been paid off is writted off entirely.
When your payment program is recognised and becomes ‘protected’ we can put an end to creditor harassment. They can no longer threaten you with legal actions, and, each time they need to contact you, they are required to do so us. This means an end to unwanted telephone calls and intimidating letters asking for money from you. Trust Deeds exist to help the thousands of Scots across the nation who have found themselves struggling against debt trouble to establish a fresh start – without having to submit an application for the more drastic step of bankruptcy.
To meet the criteria, you must live in Scotland (or have resided there within the previous 12 months), hold unsecured debts of amounting to more than £5000, and also be insolvent (unable to settle the complete amount owed).
- Store Cards
- HMRC Debts
- Payday Loans
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Credit Cards
We’ll also have to work out whether it’s possible for you to cover a regular monthly payment which satisfies creditors, ordinarily through income or assets. This generally requires the ability to pay back at minimum 10p on the pound of what was owed.
How is a Trust Deed set up?
Since we do all of the heavy-lifting and handle most of the documentation, we make the whole set up system very simple for you.
Step 1: To begin, you need to pick up the telephone and get in touch, subsequently our experts will examine your financial circumstances. Afterwards, we will figure out what you are able to reasonably manage to contribute towards your payments.
All of the advice our agents will provide is absolutely free and sincere. No costs apply, and after you have heard what we have told you, there will be zero demands on you to explore the process any further if you do not wish to.
Step 2: In the event that you do opt to continue, debt free life will be assigned as your trustee. From this point, we will prepare a deal outlining to your creditors the total amount you will be able to contribute per month , and the way your assets will be managed, and how much overall they can anticipate receiving over the four years.
All of the creditors who are contacted will subsequently have 5 weeks to accept or reject the proposal. So long as any rejections of the proposal which we receive will not go beyond one third of the total amount which you have to pay, then the arrangement can go ahead and become legally-binding. If we do not receive a answer from a creditor, we are allowed to assume they accept the conditions.
In the uncommon event that the conditions of the deal are not approved, then our advisers can offer alternative approaches that can help advance your finances forward for you to consider.
Step 3: At this stage, your trust deed Debt Advice Edinburgh will have been awarded protected status. Therefore, creditors are not allowed to continue to try and contact you, and all court measures towards you is illegal.
You are simply required to comply with rules of the agreement by supplying your individual reduced regular monthly repayment.
Step 4: If after the fixed-term all of the agreed installments have been met, then any leftover debt to creditors will be wiped out. All creditors who were included in the arrangement cannot try and pursue you for any debt that remains.
At this stage, you are welcome to enjoy your debt free life.
Advantages of a Trust Deed
- We are able to transfer your unmanageable debt into a realistic individual repayment, based on what you are able to pay for.
- All fees and rates of interest which would normally raise your debt will be stopped.
- The pressure of endless unwanted phone calls and frightening letters will disappear – will be illegal for creditors to attempt to reach you directly.
- Traditionally, it will be possible to keep your vehicle and stay in your own home.
- The tedious documentation and admin stuff is up to us, you can just focus on making the repayments.
- The danger of legal action will be gone completely.
- Any fees that are connected with our services will be obtained out of the regular monthly installment or from any assets that may be sold – there is zero upfront cost.
- All of your debt that remains unpaid throughout the four years, put simply, as much as 80 percent of it, will be written off.
- The process offers you the chance to reset your credit history and to rebuild from that point, instead of letting it drop continually as you struggle to meet the repayments.
Your Assets in a Trust Deed Trinity
When compared with various other debt solutions, a Trust Deed is an effective strategy for protecting your most vital assets while managing your financial troubles.
Your Home – If you don’t actively desire to, it is extremely rare that your property is required to be sold. Our specialists will always have your assets as a priority, ensuring you will be able to remain in your own home.
Nevertheless, in some circumstances you could be required to realise some equity (for example, the value of a property that has a mortgage minus any charges against it) to get the approval of creditors. Any equity available to you will have been worked out soon after you reach out to us. It may have to be transformed into cash, or ‘realised’, but there are techniques of achieving this without you having to lose your home. These methods will be outlined simply but in depth by our knowledgeable team.
Your Car – In cases where your motor vehicle is crucial to your daily needs, it is unlikely that you are going to have to lose it.
However, if the vehicle is of great worth you may need to swap it in for an older or more moderate version. This will allow extra money to go to your creditors, so that we can draft a more agreeable proposition. If you are utilising a Hire Purchase or some other form of financial contract to obtain your vehicle, then this will be considered as part of your necessary monthly expenses.
Again, in cases where the vehicle you are ‘paying up’ is expensive, then this expense may have to be reconsidered.
See whether you are eligible for a debt solution by getting in touch with one of our consultants today, and let us help you to join the tens of thousands of Scots across the nation in taking the journey towards a debt free life.