Trust Deed Plains
Introduced by the Scottish government to assist those unable to keep their debt in check, a Trust Deed Plains is a formal insolvency agreement which permits you to transfer multiple outstanding debts into one decreased monthly payment plan. The plan transpires over a fixed period, commonly 48 months, by the end of which any leftover debt will be wiped out if all conditions are met.
As soon as we are able to get your debt solution set up and confirmed by your creditors, it becomes protected. This means they are not able to attempt to acquire money from you by mailing persistent letters and making repeated calls. All communications must go through us instead. Any legal action against you is also no longer a possibility. Trust Deeds are a brilliant way for Scots to wipe out huge amounts of cash without needing to take the more serious measure of filing for bankruptcy.
To be able to apply, you need to be resident in Scotland, or have lived there within the last 12 months, and have unsecured debt equating to a minimum of £5000 that you are not able to repay (you have to be insolvent).
- Payday Loans
- Store Cards
- Council Tax Arrears
- Credit Cards
- HMRC Debts
- Unsecured Personal Bank Loan
Our agents will also need some details of your earnings, along with any relevant assets, so that they can evaluate whether or not you could make a regular monthly payment which could satisfy your creditors. For creditors to agree, you must ordinarily manage to repay 10% of what was supposed to be paid.
How is a Trust Deed set up?
The entire process of getting everything established with our business is a series simple and easy, manageable steps.
Step 1: As soon as you get in contact with our team we will take a look at your finances and get an idea of your circumstances. Once we are familiar with your situation we will evaluate what you are able to reasonably pay each month without letting you continue to struggle.
Advice from us is free and impartial. There is zero-obligation to take any further steps towards a debt solution after our discussion, and no fees apply.
Step 2: In the case that you choose to move forward, we will become your formal trustee. We will convey the terms of the arrangement to your creditors, detailing the way in which assets will be handled (your house and car are secure normally), and make them aware of how much of the debt you owe that they can expect to obtain over the predetermined fixed term.
Your creditors then have five weeks to agree or disagree with the plan. If any objections we obtain do not go beyond one third of the value of the debt you owe, then your solution will go forward – earning protected status. If creditors do not answer to the proposition it is assumed that they have approved the terms.
Should the proposition fail at this point then we can offer alternate monetary guidance on how is best to progress.
Step 3: At this point, your trust deed Debt Advice Glasgow will have acquired protected status. Therefore, creditors are not allowed to continue to try and contact you, and all court measures against you is against the law.
You are only required to comply with terms of the arrangement by delivering your single lowered regular monthly contribution.
Step 4: If after the fixed-term all of the agreed repayments have been met, then any leftover debt to creditors will be written off. All creditors who were included in the agreement cannot endeavor to go after you for any balance that remains.
At this stage, you are welcome to enjoy your debt free life.
Advantages of a Trust Deed
- We are able to transfer your current unmanageable debts into a sensible individual monthly installment, dependant on what you are able to pay for.
- All charges and rates of interest which would normally raise your debt will be stopped.
- The stress of continual unwanted phone calls and overwhelming letters will be gone – will be illegal for creditors to attempt to reach you directly.
- Most likely, it is possible to keep your car and stay in your own home.
- The monotonous forms and admin stuff is up to us, you can just focus on making the repayments.
- The threat of legal action will be gone entirely.
- Any charges that apply for our services will be taken out of the regular repayment or from any assets that could be sold – there will be zero set up charge.
- All of the debt that remains unpaid throughout the 4 years, quite simply, up to 80% of the initial total, will be written off.
- The approach offers you an opportunity to reset your credit score and to improve from there, rather than allowing it to continue to drop as you find it difficult to meet the minimum monthly payments.
Your Assets in a Trust Deed Plains
In comparison to various other debt solutions, a Trust Deed can be a wonderful strategy for protecting your essential assets while sorting out your financial troubles.
Your Home – Unless you actively want to, it is extremely extraordinary that your property will have to be liquidated. Our team will always have your assets as a priority, ensuring you are able to remain in your home.
However, occasionally you may be required to realise some equity (for instance, the worth of a property that has a mortgage minus any charges towards it) in order to get the approval of creditors. Any equity available will have been calculated when you make contact with us. It may have to be transformed into cash, or ‘realised’, but there are numerous tactics of doing this without you losing your home. These techniques will be outlined simply but in detail by our knowledgeable advisers.
Your Car – If your vehicle is essential to your daily requirements, it is unlikely that you are going to lose it.
However, if the vehicle is of significant value you might need to trade it in for an earlier or more moderate vehicle. This will release more money that can go to creditors, so you can have an agreeable proposition. If you are involved in a Hire Purchase or any other form of finance arrangement to acquire your motore vehicle, then this will be considered as part of your essential monthly expenses.
Again, in the event the car you are ‘paying up’ is expensive, then this expenditure may have to be reviewed.
Find out if you are eligible for a debt solution by getting having a chat with one of our consultants now, and let us help you by joining thousands of Scots throughout the country in taking the journey towards a debt free life.