Trust Deed Gorbals
Developed by the Scottish government to help individuals fighting to keep their debt in check, a Trust Deed Gorbals is a formal insolvency contract which makes it possible for you to transform multiple outstanding debts into one reduced monthly repayment plan. The arrangement occurs across a fixed interval, typically four years, by the end of which all leftover debts will be waived presuming all terms and conditions are met.
Once we have put in place your monthly payment programme you will be protected against lenders. They can’t make contact with you directly regarding money, and do not have the option to take legal action against you and your family. They can only contact us, and we will pass on any appropriate details directly to you. Trust Deeds were designed to aid the tens of thousands of Scots fighting with unmanageable debt to build a fresh beginning without needing to take the severe action of entering sequestration.
To qualify, you will need to live in Scotland (or have lived there within the previous 12 months), hold unsecured debts of amounting to more than £5000, and be insolvent (unable to repay the whole sum you owe).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
We’ll also have to work out if you’re able to pay a regular monthly payment which suits creditors, normally from assets or income. This usually requires the capability to pay back at minimum 10 percent of the full amount owed
How is a Trust Deed set up?
Putting together the arrangement is merely a sequence of uncomplicated, easily understandable steps.
Step 1: Once you pick up the telephone and get in contact, our agents will take some financial information from you and assess your position. After we have all of the information we need, we will work out what you can realistically pay to every month without having nothing left.
Making contact with us is completely cost-free and everything we will explain to you is completely professional and impartial. We will not demand that you take any additional steps towards a financial solution after speaking with us, and it will cost you absolutely nothing.
Step 2: If you decide to continue progressing forward, then we will be assigned as your trustee. As soon as we write an offer we will offer it to your creditors, outlining the way your assets will be handled, what monthly instalment you will be able to offer, and how much of the debt owed they can expect to receive across the fixed term. Generally, your property and motor vehicle can become secure.
The creditors included then have 5 weeks to take into account the proposal and either settle for or reject the terms and conditions. The Trust Deed can go forward if we do receive objections, as long as they do not comprise in excess of one third of the debt you owe – at this stage the arrangement will have attained protected status. Whenever creditors do not respond at all, this will be thought of as an acknowledgement.
In rare cases where the offer is not recognised, then there will be additional options available to you which our advisers can outline in detail.
Step 3: After your trust deed Debt Advice Glasgow has obtained protected status, creditors cannot harass you with telephone calls or constant mail. You are also safe from any legal consequences.
This will persist in being the case as long as you keep delivering your your cheaper regular monthly installments, as per the conditions of the settlement.
Step 4: If you have met all of the agreed installments, then after the 4 years all leftover debt will be wiped out. It is illegal for any of the creditors active in the agreement to try and extort any more cash from you.
With zero remaining debt, you can start to appreciate your debt free life!
Advantages of a Trust Deed
- We are able to transfer your current unmanageable debt into a affordable individual repayment, dependant upon what you can afford to pay for.
- All fees and interest rates which would normally raise your debt balance will be stopped.
- The stress of constant undesirable telephone calls and frightening letters will be gone – will be illegal for creditors to try and get hold of you directly.
- Traditionally, it will be possible to keep your car and remain in your house.
- The monotonous paperwork and admin stuff is up to us, you can just focus on making the repayments.
- The danger of court repercussions will be gone altogether.
- Any fees that are connected with our services will be taken from the regular repayment or from any of your assets which may be sold – there will be 0 initial cost.
- All of the debt that remains unpaid throughout the 4 years, put simply, as much as eight tenths of the initial total, will be cancelled.
- The process offers you the chance to reset your credit history so that you can improve from there, instead of allowing it to continue to drop as you find it difficult to meet the repayments.
Your Assets in a Trust Deed Gorbals
A Trust Deed is an effective strategy of protecting your most important assets, while still being able to pay off your debts as a result of the flexibility it will offer.
Your Home – Unless you opt to, it is very unlikely that you’ll be forced to sell your house. Our debt management specialists will handle your assets with the intention of keeping you in your own home.
Even so, you may be required to release some equity (the gap between the market value of the house and the debt owed on it) to satisfy creditors as part of the arrangement. The equity, which will have been worked out at the beginning of this process, may have to be converted into cash as part of the contract, but there are a number approaches to achieve this without losing the property. These methods we can use to protect your home will be explained to you by our advisers.
Your Car – Additionally, it is unusual to lose your motor vehicle if you require it for work or family obligations.
However, if your car is brand new, or valued at a significant amount of money, then you may be asked to exchange it for a model of lesser value, releasing funds to put towards your repayments to creditors. If you are in some form of finance agreement to purchase your car, like Hire Purchase, this will be included in your regular costs.
Once again, if the value of the car is excessive, then it might have to be reconsidered, but generally we can ensure you keep your car.
If anything remains unclear, our advisers are happy to explain everything in full to you. This is your chance to wipe out debt completely and join thousands of people all over the UK in using a legislated debt solution to put an end to creditor harassment!