Trust Deed Oban

Introduced by the Scottish government to assist people battling to keep their debt manaegable, a Trust Deed Oban is a formal insolvency contract which enables you to convert several outstanding debts into one reduced monthly instalment plan. The arrangement takes place over a set period, commonly 4 years, at the end of which all outstanding debt will be wiped out if all conditions have been met.

Trust Deed Oban

Once we have established your monthly payment programme you will be protected from lenders. They can no longer contact you directly in an attempt to get cash, and do not have the option to take legal action against you. Your creditors only contact us, and we will communicate all relevant information directly to you. Trust Deeds were created to support the thousands of Scots struggling with unmanageable debt to find a brand new beginning without having to consider the severe action of entering sequestration.

To be eligible, you will need to live in Scotland (or have lived there within the past year), have unsecured debt of over £5000, and also be insolvent (unable to pay back the full amount owed).

  • Store Cards
  • HMRC Debts
  • Overdrafts
  • Payday Loans
  • Council Tax Arrears
  • Unsecured Personal Bank Loan
  • Credit Cards

Our specialists will also take some information regarding your earnings, and any any relevant assets, so that they can evaluate whether or not you can make a monthly payment that can suit your creditors. For creditors to consent, you must typically manage to payback 10% of what was supposed to be paid.

How is a Trust Deed set up?

Since we do all of the heavy-lifting and handle the vast majority of the documentation, we make the whole set up procedure very simple and easy for you.

Step 1: The first thing to do is pick up the telephone and get in touch, subsequently our experts will get to know your financial circumstances. Afterwards, we can determine what you can reasonably afford to contribute towards your repayments.

All of the guidance our consultants offer is totally free and honest. No costs apply, and after you have considered what we have told you, we will not force you to take the process any further if you do not wish to.

Step 2: In the event that you do decide to progress, debt free life will be employed as your trustee. From here, we will write a deal setting out for your creditors precisely how much you will be able to contribute per installment , and the way your assets will be handled, as well as how much overall they can expect to receive across the agreed period.

All of the creditors who are contacted will subsequently have 5 weeks to respond. As long as any rejections of the proposal that we receive will not meet or exceed a third of the whole amount which you have to pay, then the agreement will go ahead and become protected. If we do not receive a reply from a creditor, we are allowed to assume they are in agreement with the deal.

In the unfortunate event that the terms of the deal are not accepted, then our advisers can provide alternate courses of action that can help move your finances forward for you to consider.

Step 3: After your trust deed Debt Advice Glasgow has gained protected status, creditors cannot pester you with phone calls or constant letters. You are also shielded against any legal repercussions.

This will persist in being the case provided you keep delivering your your decreased regular payments, as outlined by the conditions of the arrangement.

Step 4: Provided you have met all of the agreed installments, then after the four years all leftover debt will be written off. It isstrictly illegal for any creditor active in the agreement to try and get any more cash from you.

With zero remaining debt, you can start to enjoy your debt free life!

Advantages of a Trust Deed

  • Regain control of your finances allowing us to convert your unmanageable debts into a single lowered monthly installment.
  • Once you have entered into the commitment, your present debt is frozen throughout the arranged term – no more costs, including interest, can be added onto the balance.
  • Put an end to creditor harassment; you can stop worrying about the telephone going and the letter box opening.
  • Safeguard your most vital assets, like your vehicle and home.
  • All of the complicated administrative stuff is dealt with by our advisers.
  • Creditors are not allowed to pursue court action to get cash from you.
  • There are no extra fees for our expert services, they are usually included in your monthly payment, or in some instances from the liquidation of any appropriate assets.
  • After all payments are actually achieved, in most cases after around 48 months, all remaining debts to creditors included in the agreement are written off.
  • After a fixed term, your credit rating will be reset, giving you more freedom to handle your financial situation from then on.

Your Assets in a Trust Deed Oban

Compared to some other debt solutions, a Trust Deed can be a fantastic way of protecting your most essential assets while addressing your debt.

Your Home – If you don’t actively desire to, it is exceptionally unusual that your house is required to be liquidated. Our advisers always hold your assets as a priority, ensuring you will be able to remain in your house.

Even so, occasionally you could be required to realise some equity (for example, the value of a property with a mortgage minus any charges towards it) to acheive the blessing of creditors. Any equity accessible to you will have been calculated soon after you reach out to us. It may need to be converted into cash, or ‘realised’, but there are methods of accomplishing this without you having to lose your home. These techniques will be described simply but in depth by our knowledgeable advisers.

Your Car – If your vehicle is vital for your everyday needs, it is improbable that you are going to lose it.

However, if the motor vehicle is of great value you may need to swap it in for an earlier or more moderate vehicle. This will release extra money that can go to your creditors, so that we can draft a more attractive proposition. If you are using a Hire Purchase or any other type of financial agreement to obtain your motore vehicle, then it will be considered as part of your necessary monthly expenses.

Again, in the event the vehicle that you are ‘paying up’ is particularly pricey, then this expense may be taken into consideration.