Trust Deed Dreghorn
Developed by the Scottish government to aid all those fighting to keep their debt manaegable, a Trust Deed Dreghorn is a formal financial contract which enables you to transfer multiple outstanding debts into one decreased monthly payment plan. The arrangement takes place over a set period, normally four years, at the end of which any remaining debts will be written off assuming all terms are fulfilled.
After we have established your monthly payment plan you will be protected from lenders. They can’t contact you directly pressuring for money, and no longer have the option to take court action against you. They can just contact us, and we will pass on all appropriate details directly to you. Trust Deeds were established to support the tens of thousands of Scots struggling with with unmanageable debt to make a brand new start without needing to take the radical step of filing for bankruptcy.
To qualify, you have to live in Scotland (or have resided there inside the previous year), have unsecured debt of over £5000, and be insolvent (unable to pay back the complete amount of money you owe).
- Store Cards
- HMRC Debts
- Payday Loans
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Credit Cards
You will also need to pay a regular monthly repayment from your salary or assets, that is sufficient to satisfy your creditors. We can determine all of this, however lenders will usually need a minimum settlement of 10p on each £1 they were due.
How is a Trust Deed set up?
Because we will handle most of the paperwork, we make the whole set up system extremely effortless for you.
Step 1: The first thing to do is pick up the phone and get in contact, subsequently our specialists will assess your financial circumstances. Afterwards, we will figure out what you can realistically manage to contribute towards your repayments.
All of the guidance our advisers offer is free and sincere. No service fees apply, and after you have listened to that which we have to offer, we will not push you to pursue things any further if you do not desire to.
Step 2: If you do decide to advance, debt free life will be employed as your trustee. From this point, we will write a deal setting out to your creditors exactly how much you can pay per installment , and in what way your assets will be handled, and how much overall they can expect to receive over the fixed-term.
Your creditors subsequently have 5 weeks to give an answer. So long as any rejections of the proposal that we obtain do not extend past one third of the overall amount which you owe, then the plan can go ahead and become protected. If we receive no response from a creditor, we can assume they are in agreement with the terms.
In the unfortunate event that the terms of the contract are not approved, our advisers will provide alternative tactics that can help move your finances forward for you to consider.
Step 3: From this stage, your trust deed Debt Advice Glasgow will have received protected status. This means creditors cannot continue to harass you, and any legal measures against you is against the law.
You are simply required to comply with terms of the agreement by supplying your single decreased monthly payment.
Step 4: If after the fixed-term all of the agreed obligations have been fulfilled, then any leftover debt to creditors will be written off. All creditors who had been a part of the arrangement cannot try and contact you for any debt that remains.
At this stage, you are welcome to move forward with your debt free life.
Advantages of a Trust Deed
- Get back on top of your financial situation by permitting us to turn your spiralling debt into a singular payment that you can afford.
- The moment your settlement is is established, your existing debt cannot rise any further – interest and any other fees that might normally apply can no longer be charged.
- Creditors will be unable to harass you with continuous daunting letters and undesired phone calls.
- Important assets such as your house and car are ordinarily safe.
- We will take care of each of the boring and complex paperwork and communications.
- Legal measures are no longer a choice open to creditors.
- The cost of our services will be covered by the money you owe in the first place – there are no upfront costs to you. They will be included in the monthly repayment, or from time to time the sale of any assets.
- On the condition you keep to the arrangement and satisfy each and every payment, after four years all of the left over debt will be entirely wiped out.
- Following a period of time, the record of the arrangement will be wiped off of your credit history, allowing you to rebuild it and manage your finances a great deal more easily.
Your Assets in a Trust Deed Dreghorn
Compared to various other debt solutions, a Trust Deed can be a wonderful means of protecting your most important assets while addressing your debt.
Your Home – Unless you actively want to, it is exceptionally uncommon that your home is required to be liquidated. Our specialists always have your assets as a priority, making sure you are able to remain in your property.
Nevertheless, occasionally 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 acheive the support of creditors. Any equity open to you will have been calculated soon after you make contact with us. It may need to be transformed into cash, or ‘realised’, but there are various methods of doing this without you having to lose your home. These techniques will be explained simply but in detail by our knowledgeable consutlants.
Your Car – In cases where your vehicle is essential for your everyday requirements, it is improbable that you will lose it.
However, if the vehicle is of great worth you may need to trade it in for an older or more modest version. This will release extra revenue to go to creditors, so you can have an agreeable proposition. If you are involved in a Hire Purchase or another type of financial agreement to acquire your car, then this will be considered as part of your necessary monthly expenses.
Again, in the event the vehicle that you are ‘paying up’ is particularly costly, then this cost may need to be reconsidered.
For more information on whether you meet the requirements to enter into a debt solution give our brilliant team a call today. We are dedicated to helping you get back in control of your money using formal fully-legislated processes like thousands of other Britons across the UK!