Trust Deed Dollar
Created by the Scottish government to aid people unable to keep their debt manaegable, a Trust Deed Dollar is a formal insolvency agreement which enables you to transform a number of outstanding debts into one reduced monthly instalment plan. The agreement transpires over a fixed interval, typically 48 months, by the end of which any remaining debts will be written off presuming all terms and conditions are met.
When we are able to get your debt solution established and confirmed by your creditors, it will become protected. This means they are not able to attempt to acquire money from you by sending continuous letters and making constant calls. All communications are required to go through us instead. Any court actions against you are also no longer a possibility. Trust Deeds are a brilliant way for Scots to wipe out massive amounts of cash without needing to select the more intense step of entering sequestration.
To be eligible, you have got live in Scotland, or have been inside the recent year, have outstanding debt upwards of £5000 in unsecured finance, and also be in a position in which you won’t be able to repay the full amount which you owe.
- Store Cards
- HMRC Debts
- Payday Loans
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Credit Cards
You will also need to contribute a regular monthly payment from your salary or assets, which is enough in order to satisfy your creditors. We can calculate everything, however lenders will typically demand a minimum settlement of ten percent of every £1 they are owed.
How is a Trust Deed set up?
Because we will handle the vast majority of the documentation, we make the whole set up process really straightforward for you.
Step 1: To begin, you need to pick up the phone and give us a call, subsequently our experts will get an idea of your financial situation. Afterwards, we can determine what you can reasonably manage to contribute towards your payments.
All of the advice our agents will give is absolutely free and sincere. No charges apply, and after you have considered what we have told you, we will not pressure you to explore the process any further if you do not want to.
Step 2: If you do opt to advance, debt free life will be designated to serve as your trustee. From this point, we will compose an offer which will detail for your creditors the total amount you can contribute each month , and in what way your assets will be managed, and how much in total they can anticipate receiving over the four years.
All of the creditors who are contacted will subsequently have five weeks to answer. So long as any rejections of the proposal that we obtain do not surpass one third of the whole amount which you have to pay, then the deal can go ahead and become protected. If we receive no answer from a creditor, it is assumed they are in agreement with the plan.
In the unusual event that the conditions of the deal are not accepted, then our advisers can provide alternate courses of action to help move your financial situation forward for you to consider.
Step 3: Once your trust deed Debt Advice Glasgow has received protected status, creditors cannot bother you with telephone calls or constant mail. In addition, you are shielded against any legal repercussions.
This will persist in being the case as long as you keep making your your reduced regular installments, as outlined by the terms of the deal.
Step 4: Provided you do meet all of the agreed repayments, then after the 4 years all remaining debt will be written off. It isstrictly illegal for any creditor involved with the agreement to try and get any more cash 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 convert your unmanageable debt into a sensible single payment, contingent on what you are able to afford.
- All fees, charges and rates of interest which would normally increase your debt will be stopped.
- The stress and anxiety of frequent unwanted phone calls and overwhelming letters will disappear – is illegal for creditors to try and contact you directly.
- Usually, you will be able to keep your vehicle and remain in your own home.
- The tedious paperwork and administrative stuff is up to us, you can just focus on making the repayments.
- The threat of legal repercussions will be gone completely.
- Any charges that are connected with our services will be obtained from the regular monthly settlement or from any of your assets that may be sold – there will be no upfront charge.
- All of the debt that is not paid off during the 4 years, in other words as much as 80% of it, will be cancelled.
- The procedure offers you the opportunity to reset your credit score and to improve from there, instead of allowing it to continue to drop as you fight to meet the repayments.
Your Assets in a Trust Deed Dollar
When compared with various other debt solutions, a Trust Deed can be a wonderful method of protecting your most vital assets while sorting out your financial troubles.
Your Home – Unless you actively want to, it is remarkably rare that your house will have to be sold. Our advisers will always have your assets as a priority, ensuring you are able to remain in your own home.
On the other hand, in some instances you may be required to realise some equity (for example, the worth of a property with a mortgage minus any charges towards it) to acquire the approval of creditors. Any equity open to you will have been estimated when you get in touch with us. It could possibly need to be transformed into cash, or ‘realised’, but there are various techniques of accomplishing this without you losing your home. These techniques will be outlined simply but in depth by our experienced advisers.
Your Car – In cases where your motor vehicle is essential to your everyday requirements, it is improbable that you are going to have to lose it.
However, if the vehicle is of great value you may need to swap it in for an earlier or more modest version. This will release extra money that can go to your creditors, so that you can have an attractive proposition. If you are employing a Hire Purchase or any other method of financial agreement to acquire your vehicle, then this will be taken as part of your essential monthly expenses.
Again, if the car you are ‘paying up’ is expensive, then this expense may have to be reviewed.
Find out if you can get a debt solution by getting having a chat with our consultants today, and let us help you by joining tens of thousands of Scots throughout the country in taking the journey towards a debt free life.