Trust Deed Knightswood
Introduced by the Scottish government to aid those battling to keep their debt under control, a Trust Deed Knightswood is a formal insolvency arrangement which enables you to transform multiple outstanding debts into one lowered monthly payment plan. The arrangement occurs over a set period, commonly 48 months, after which any excess debt will be wiped out presuming all terms are fulfilled.
Once we have set up your regular payment programme you will be protected against lenders. They can no longer get in touch with you directly pressuring for cash, and do not have the choice to take court action against you and your family. They can only contact us, and we will communicate all appropriate details directly to you. Trust Deeds were developed to aid the thousands of Scots struggling with with debt to obtain a fresh start without needing to consider the serious step of entering sequestration.
To meet the criteria, you have to be resident in Scotland, or have been in the last 12 months, have outstanding debts in excess of £5000 in unsecured loans, and also be in a situation where you are unable to settle the full sum that you owe.
- Credit Cards
- Store Cards
- Council Tax Arrears
- Unsecured Personal Bank Loan
- Payday Loans
- HMRC Debts
You will also have to contribute a monthly repayment out of your income or assets which is good enough to satisfy your creditors. We can calculate everything, but lenders will in general require a minimum settlement of ten percent on every £1 that were due.
How is a Trust Deed set up?
Because we will take care of most of the documentation, we make the whole set up process extremely simple for you.
Step 1: To begin, you need to pick up the phone and get in contact, subsequently our team will evaluate your financial circumstances. Afterwards, we can work out what you can reasonably afford to contribute towards your repayments.
All of the advice our agents offer is absolutely free and impartial. No charges apply, and after you have listened to that which we have outlined for you, there will be no demands on you to pursue things any further if you do not wish to.
Step 2: In the event that you do make the decision to continue, debt free life will be employed to serve as your trustee. At this point, we will compose a proposal which will detail for your creditors the total amount you will be able to pay per installment , and how your assets will be handled, and how much in total they can anticipate receiving across the agreed period.
All of the creditors who are contacted will then have 5 weeks to react. So long as any rejections of the proposal which we obtain will not exceed a third of the total amount that you owe, then the plan can go ahead and become protected. If we receive no response from a creditor, we can assume they agree with the plan.
In the unfortunate event that the terms of the agreement are not approved, then our advisers will offer alternate tactics that can help move your finances forward for you to consider.
Step 3: At this stage, your trust deed Debt Advice Glasgow will have received protected status. Therefore, creditors cannot continue to harass you, and all legal action against you is illegal.
You are only required to comply with conditions of the agreement by supplying your individual reduced regular monthly contribution.
Step 4: If after the fixed-term all of the agreed monthly payments have been delivered, then any excess debt to creditors will be wiped out. All creditors who have been a part of the agreement cannot try and contact you for any balance that remains.
At this stage, you are welcome to move forward with your debt free life.
Advantages of a Trust Deed
- Get back in control of your money by permitting us to convert your spiralling debt into a single payment which you can afford.
- When your settlement is in place, your existing debt cannot rise any further – interest as well as other fees which would ordinarily apply can no longer be added.
- Creditors will be unable to pressure you with continuous daunting mail and undesired phone calls.
- Important assets such as your property and car are typically secured.
- debt free life will handle each of the monotonous and complex paperwork and communications.
- Legal action is no longer a choice available to creditors.
- The cost of our services will be covered through the money owed in the first place – there are no upfront costs to you. They will be included in the monthly repayment, or once in a while the liquidation of any assets.
- If you stick to the agreement and satisfy each payment, after four years all of the remaining debt will be fully wiped out.
- After a period of time, the record of the agreement will be removed from your credit history, allowing you to rebuild it and manage your finances a great deal more easily.
Your Assets in a Trust Deed Knightswood
A Trust Deed is an effective strategy of protecting your most important assets, while still being able to pay off your debts due to the versatility it will offer.
Your Home – Unless you opt to, it is incredibly unlikely that you’ll have to sacrifice your home. Our debt management specialists will deal with your assets with the aim of keeping you in your own home.
Nevertheless, you might be required to release some equity (the gap between the market value of the home and the debt to be paid on it) to satisfy creditors as part of the contract. The equity, that we’ll have analysed at the outset of this process, might have to be converted into cash as part of the settlement, however there are various methods to do this without having to lose the property. These techniques we can use to protect your home will be defined to you by our specialists.
Your Car – Additionally, it is unusual to lose your vehicle if you need it for work or family obligations.
However, if your car is brand new, or worth a significant amount of money, then you may be required to swap it in for a less valuable model, releasing money to put toward your payments to creditors. If you are in some form of finance agreement to pay for your car, such as Hire Purchase, this will be included as part of your necessary expenditures.
Once again, if the cost of the vehicle is extreme, it may need to be reconsidered, but generally we can make sure you keep the car.
Find out if you are eligible for a debt solution by getting having a chat with one of our advisers today, and let us help you by joining tens of thousands of Scots across the nation in taking the journey towards a debt free life.