Trust Deed West Lothian

A Trust Deed West Lothian is a legally-binding arrangement designed to aid all those struggling with debt. It can help you remove multiple debts to various creditors, via a reduced monthly repayment, determined by what you are able to afford. If at the end of the agreement, which is usually set at 4 years, each of the terms have been met and no payments have been missed, then any debt that has not yet been paid off is wiped out entirely.

Trust Deed West Lothian

The instant your payment plan is set up and becomes ‘protected’ we will put an end to creditor harassment. They are unable to pressure you with legal actions, and, anytime they want to contact you, they must go through us. This means an end to stressful phone calls and intimidating letters asking for money from you. Trust Deeds exist to support the thousands of Scots throughout the country who are having financial problems to work towards a fresh start – without having to submit an application for the more drastic step of filing for bankruptcy.

To qualify, you will need to live in Scotland (or have lived there within the last year), have unsecured debts of over £5000, and be insolvent (unable to settle the full amount you owe).

  • Payday Loans
  • Store Cards
  • Overdrafts
  • Council Tax Arrears
  • Credit Cards
  • HMRC Debts
  • Unsecured Personal Bank Loan

Our agents will also take some specifics of your income, and any any relevant assets, so that they can evaluate whether or not you could make a regular monthly payment which will suit your creditors. For creditors to agree, you must normally have the ability to pay back 10% of what was supposed to be paid.

How is a Trust Deed set up?

The whole process of getting everything established with our business is a series simple and easy, achievable steps.

Step 1: After you contact our team we will look into your finances and get an idea of your circumstances. Once we are familiar with your financial condition we will evaluate what you are able to realistically pay every month without letting you continue to struggle.

Advice from us costs nothing and is impartial. There is zero-obligation to take any additional steps towards a debt solution after our discussion, and no charges apply.

Step 2: Should you choose to move ahead, our business will become your official trustee. We will convey the conditions of the agreement to your creditors, detailing how your assets will be managed (your home and vehicle are safe generally), and tell them how much of the outstanding debt they can anticipate to obtain across the agreed fixed term.

The creditors involved then have five weeks to acknowledge the deal. If any objections we obtain do not go over a third of the value of the debt you owe, then the process can go forward – acquiring protected status. If creditors do not react to the offer it is assumed that they have approved the terms.

Should the offer fail during this period then we can offer alternate financial guidance on how is best to continue.

Step 3: At this stage, your trust deed Debt Advice Edinburgh will have attained protected status. Therefore, creditors cannot continue to try and contact you, and any legal action towards you is illegal.

You are only required to meet the rules of the contract by supplying your single decreased monthly payment.

Step 4: If after the 4 years all of the agreed repayments have been delivered, then any outstanding debt to creditors that is till to be paid will be wiped out. All creditors who were a part of the arrangement cannot attempt to pursue you for any balance that remained.

At this stage, you are welcome to enjoy your debt free life.

Advantages of a Trust Deed

  • Get back in charge of your finances by allowing us to transform your spiralling debt into a singular payment which you can afford.
  • Once your contract is in place, your outstanding debt cannot rise any higher – interest as well as other fees which would normally be added can no longer be charged.
  • Creditors will be unable to burden you with regular overwhelming mail and undesired telephone calls.
  • Important assets such as your house and vehicle can be secure.
  • debt free life will take care of each of the monotonous and complex paperwork and communications.
  • Court action is no longer a possibility available to creditors.
  • The cost of our services will be paid for through the money owed in the first place – there won’t be any upfront costs to you. They are part of the monthly payment, or sometimes the liquidation of any assets.
  • If you stick to the agreement and meet every repayment, after 4 years all of the debt that remains will be completely written off.
  • After a set period, the record of the arrangement will be wiped off of your credit rating, which will allow you to rebuild it and manage your finances much more easily.

Your Assets in a Trust Deed West Lothian

A Trust Deed is an excellent way to protect your most vital assets, while still being able to pay off your debts as a result of the overall flexibility it offers.

Your Home – Unless you opt to, it is incredibly unlikely that you’ll have to sacrifice your property. Our advisers will handle your assets with the aim of making sure you can stay in your own home.

On the other hand, it may be necessary to release some equity (the difference between the market value of the property and the debt to be paid on it) to satisfy creditors included in the contract. The equity, that we’ll have evaluated at the outset of the process, might need to be converted into cash as part of the contract, but there are several approaches to achieve this without having to lose the house. These techniques we can use to protect your home will be defined to you by our specialists.

Your Car – It is also unusual to lose your car if you require it for work or family responsibilities.

Nonetheless, if your motor vehicle is brand new, or valued at a great deal of money, then you may be required to swap it in for a model of lesser value, releasing funds to put toward your repayments to creditors. If you are in some form of finance arrangement to pay for your car, such as Hire Purchase, this will be included as part of your regular costs.

Once again, if the price of your car is excessive, then it might have to be reconsidered, but typically we are able to ensure you hold on to your car.