Trust Deed Forth
Introduced by the Scottish government to assist individuals battling to keep their debt in check, a Trust Deed Forth is a formal financial arrangement which will allow you to convert a number of outstanding debts into one decreased monthly instalment plan. The agreement occurs over a set period, typically four years, after which all outstanding debts will be wiped out if all terms are fulfilled.
The instant your repayment system is put together and becomes ‘protected’ we will bring an end to creditor harassment. They are unable to burden you with legal actions, and, each time they need to contact you, they are required to do so us. This means no more stressful phone calls and threatening letters asking for money from you. Trust Deeds exist to aid the countless Scots across the nation who are having debt problems to establish a fresh start – without needing to make an application for the more serious measure of filing for bankruptcy.
To meet the criteria, you have to live in Scotland (or have resided there within the previous 12 months), have unsecured debt of over £5000, and be insolvent (unable to pay back the full sum you owe).
- Credit Cards
- Store Cards
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Payday Loans
- HMRC Debts
Our specialists will also need some details of your income, as well as any any suitable assets, to enable them to evaluate whether or not you could make a regular monthly repayment which will suit your creditors. For creditors to consent, you must normally be able to payback 10% of what was supposed to be paid.
How is a Trust Deed set up?
The entire process of getting everything arranged with us business is a sequence uncomplicated, achievable steps.
Step 1: Once you contact our company we will investigate your financial situation and get an idea of the situation you are in. Once we are familiar with your situation we will evaluate what you could realistically pay every monthly installment without letting you continue to struggle.
Advice from us is free of charge and impartial. There is zero-obligation to take any more steps towards a debt solution subsequent to consultation, and no costs apply.
Step 2: If you choose to proceed, we will become your official trustee. We will convey the conditions of the agreement to your creditors, explaining how your assets will be managed (your house and car are safe typically), and inform them of how much of the outstanding debt they can be prepared to acquire over the predetermined fixed term.
The creditors involved then have five weeks to accept the terms and conditions. If any objections we obtain do not surpass a third of the total of the money owed, then your process will go forward – achieving protected status. If creditors do not respond to the proposition the assumption is that they have accepted the terms and conditions.
Should the proposal fail during this period then we can provide alternative financial guidance on how is best to move ahead.
Step 3: Once your trust deed Debt Advice Glasgow has obtained protected status, creditors cannot pester you with telephone calls or constant mail. In addition, you are shielded against any legal repercussions.
This will persist in being the case provided you keep delivering your your decreased monthly payments, as determined by the terms of the binding agreement.
Step 4: Provided you do meet all of your repayments, then after the four years all leftover debt will be written off. It isstrictly illegal for any of the creditors involved in the agreement to attempt to get any more money from you.
With no remaining debt, you can start to enjoy your debt free life!
Advantages of a Trust Deed
- Take back control over your financial situation allowing us to convert your unmanageable debts into a single cheaper monthly installment.
- As soon as you have entered into the agreement, your present debt is frozen throughout the arranged term – no more costs, for example interest, can be added to the total.
- Put a stop to harassment; you can stop worrying about the phone going and the letter box opening.
- Safeguard your most critical assets, like your car and home.
- All of the actual complicated administrative stuff is filled out by our team.
- Creditors are not allowed to undertake court action to get funds from you.
- There are no additional fees for our expert services, they are usually included in your monthly installment, or may sometimesbe taken from from the sale of any relevant assets.
- After all payments are actually fulfilled, in most cases after around 48 months, all remaining debts to creditors engaged in the settlement are wiped off.
- After a fixed term, your credit rating will be reset, giving you more freedom to handle your finances thereafter.
Your Assets in a Trust Deed Forth
A Trust Deed is an excellent strategy of protecting your most vital assets, while paying off your debts due to the overall flexibility it will offer.
Your Home – Unless you decide to do so, it is very unlikely that you’ll have to sell your home. Our consultants will handle your assets with the aim of making sure you can stay in your own home.
Even so, you may be required to release some equity (the difference between the market value of the house and the debt to be paid on it) to satisfy creditors included in the arrangement. The equity, that we will have worked out at the start of the procedure, may have to be realised (converted into cash) as part of the agreement, but there are several approaches to do this without losing the property. These methods of protecting your house will be outlined to you by our advisers.
Your Car – Additionally, it is unusual to have to forfeit your vehicle if you require it for work or for family commitments.
Nevertheless, if the motor vehicle is brand new, or worth a great deal of money, you might be required to swap it for a model of lesser value, releasing cash to contribute toward your repayments to creditors. If you are in some form of finance agreement to purchase your car, like Hire Purchase, it will be included in your monthly expenditures.
Again, if the cost of your vehicle is extreme, it might have to be reconsidered, but typically we are able to ensure you keep your vehicle.
For additional information on whether you are eligible to enter into a debt solution give our fantastic staff a call as soon as possible. We are committed to assisting you to get back in control of your finances using formal fully-legislated processes like thousands of other Britons throughout the United kingdom!