Trust Deed Dumfries and Galloway
A Trust Deed Dumfries and Galloway is a legally-binding arrangement created to support those fighting unmanageable debt. It can assist you eliminate numerous debts to various creditors, via one lower monthly payment, based on that which you can easily afford. If at the end of the agreement, which is usually set at 4 years, all the terms have been met and no payments are missed, then any debt that has yet to be paid off is wiped out entirely.
Once we have put in place your regular repayment programme you will be protected against lenders. They can’t make contact with you directly regarding money, and no longer have the option to take legal action against you. They can only contact us, and we will relay all appropriate details directly to you. Trust Deeds were developed to help the thousands of Scots struggling with with their finances to create a brand new start without needing to consider the serious action of filing for bankruptcy.
To be eligible, you must live in Scotland (or have lived there within the last year), hold unsecured debts of amounting to more than £5000, and be insolvent (unable to settle the whole amount owed).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
We will also need to determine whether or not it’s possible for you to pay a regular monthly payment which suits creditors, generally through assets or income. This normally requires the capability to pay back at minimum 10 percent of the full amount owed
How is a Trust Deed set up?
Because we will handle most of the paperwork, we make the whole set up process incredibly simple for you.
Step 1: To begin, you need to pick up the telephone and give us a call, subsequently our team will examine your financial situation. Afterwards, we can determine what you can realistically afford to contribute towards your monthly repayments.
All the advice our agents offer is free and sincere. No costs apply, and after you have heard that which we have to offer, there will be no demands on you to pursue things any further if you do not wish to.
Step 2: In cases where you do make the decision to proceed, debt free life will be appointed as your trustee. From here, we will prepare a deal setting out to your creditors exactly how much you will be able to pay per month , and the way your assets will be dealt with, and how much in total they can expect to receive across the agreed period.
All of the creditors who are contacted will then have 5 weeks to give an answer. So long as any rejections of the proposal which we obtain do not exceed one third of the total amount that you have to pay, then the agreement will go ahead and become protected. If we do not receive a answer from a creditor, we can assume they are in agreement with the plan.
In the uncommon event that the conditions of the contract are not approved, then our advisers will offer alternate strategies that can help move your financial situation forward for you to consider.
Step 3: Once your trust deed Debt Advice Glasgow has acquired protected status, creditors cannot bother you with telephone calls or constant mail. You are also shielded against any legal repercussions.
This will continue to be the case provided you keep delivering your your decreased regular repayments, as determined by the terms of the settlement.
Step 4: If you do meet all of the agreed repayments, then after the 4 years all outstanding debt will be waived. It isstrictly illegal for any of the creditors involved with the agreement to attempt to extort any more cash from you.
With no remaining debt, you can start to appreciate your debt free life!
Advantages of a Trust Deed
- We can convert your current unmanageable debt into a sensible single repayment, dependent upon what you can afford.
- All charges and rates of interest which would otherwise raise your debt will be stopped.
- The strain of continual unwelcome telephone calls and overwhelming letters will be gone – is illegal for creditors to try and contact you directly.
- Ordinarily, it will be possible to hold on to your motor vehicle and stay in your own home.
- The boring documents and administrative stuff is up to us, you can just focus on making the repayments.
- The risk of legal repercussions will be gone completely.
- Any charges that are connected with our services will be taken out of the regular payment or from any assets that may be sold – there will be no upfront charge.
- All of the debt that remains unpaid in the course of the four years, put simply, as much as 80% of it, will be cancelled.
- The process offers you the opportunity to reset your credit history so that you can improve from there, instead of allowing it to continue to drop as you fight to meet the minimum monthly payments.
Your Assets in a Trust Deed Dumfries and Galloway
A Trust Deed is a great way to protect your most vital assets, while still being able to pay off your debts due to the overall flexibility it offers.
Your Home – Unless you decide to do so, it is incredibly unlikely that you will have to sacrifice your own home. Our consultants will handle your assets with the intention of making sure you can stay in your own home.
Even so, 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 as part of the settlement. The equity, that we will have analysed at the start of this process, may have to be converted into cash as part of the arrangement, but there are various approaches to do this without having to lose the house. These techniques of protecting your house will be detailed to you by our specialists.
Your Car – Additionally, it is unusual to lose your car if you need it for work or for family commitments.
Nevertheless, if the motor vehicle is brand new, or worth a significant amount of money, then you may be required to swap it in for a model of lesser value, which will release some cash to put towards your repayments to creditors. If you are in some form of finance arrangement to pay for your vehicle, such as Hire Purchase, this will be included in your regular costs.
Once again, if the cost of the vehicle is excessive, then it may need to be reconsidered, but typically we are able to make sure you keep the vehicle.
See whether you are eligible for a debt solution by getting having a chat with one of our advisers today, and let us help you to join the thousands of Scots across the nation in taking the journey towards a debt free life.