Trust Deed Waterfoot
Developed by the Scottish government to assist all those fighting to keep their debt under control, a Trust Deed Waterfoot is a formal financial agreement which allows you to transfer several outstanding debts into one reduced monthly payment plan. The arrangement takes place across a fixed interval, in most cases four years, by the end of which all remaining debt will be waived presuming all terms and conditions have been fulfilled.
Once we have put in place your monthly repayment programme you will be protected from lenders. They can’t contact you directly regarding money, and no longer have the choice to take court action against you and your family. Your creditors only contact us, and we will relay any relevant information directly to you. Trust Deeds were developed to aid the thousands of Scots struggling with their finances to find a fresh start without having to consider the severe action of entering sequestration.
To be able to apply, you have to be resident in Scotland, or have lived here within the past year, and have unsecured debt equating to a minimum of £5000 which you are not able to repay (you have to be insolvent).
- Credit Cards
- HMRC Debts
- Store Cards
- Payday Loans
- Unsecured Personal Bank Loan
- Council Tax Arrears
We’ll also have to work out if it is for you possible to pay a monthly payment which suits creditors, ordinarily through assets or income. This typically requires the ability to repay at least 10 percent of the full amount owed
How is a Trust Deed set up?
Due to the fact we will handle the vast majority of the paperwork, we make the whole set up process incredibly simple for you.
Step 1: To begin, you need to pick up the phone and get in touch, subsequently our staff will get an idea of your financial situation. Afterwards, we will determine what you can reasonably manage to put towards your repayments.
All of the guidance our consultants offer is absolutely free and impartial. No fees apply, and after you have considered what we have to offer, there will be zero demands on you to pursue things any further should you decide you do not not want to.
Step 2: In cases where you do decide to continue, debt free life will be designated as your trustee. At this point, we will come up with an offer setting out for your creditors precisely how much you can contribute per installment , and in what way your assets will be managed, as well as how much overall they can anticipate receiving over the four years.
Your creditors then have five weeks to react. So long as any rejections of the proposal which we obtain will not exceed one third of the overall amount that you have to pay, then the agreement can go ahead and become legally-binding. If we receive no response from a creditor, we are allowed to assume they are in agreement with the conditions.
In the unusual event that the terms of the binding agreement are not approved, then our advisers will provide alternate strategies to help move your financial situation forward for you to consider.
Step 3: Once your trust deed Debt Advice Glasgow has obtained protected status, creditors cannot pester you with phone calls or constant mail. You are also safe from any legal consequences.
This will persist in being the case provided you continue to make your lowered monthly payments, as determined by the terms of the deal.
Step 4: Provided you have met all of the agreed repayments, then after the 4 years all remaining debt will be wiped out. It isstrictly illegal for any creditor involved with the agreement to attempt to get any more money from you.
With zero remaining debt, you can start to enjoy your debt free life!
Advantages of a Trust Deed
- Take back charge of your financial situation by letting us convert your unmanageable debts into a single cheaper monthly payment.
- As soon as you have entered into the agreement, your current debt is frozen during the arranged term – no more charges, including interest, may be added onto the total.
- Put an end to harassment; stop worrying about the telephone going and the letter box opening.
- Safeguard your most vital assets, such as your car and house.
- All of the difficult administrative stuff is taken care of by us.
- Creditors cannot carry out legal action to get funds from you.
- There are zero extra fees for our expert services, they are commonly included in your monthly payment, or may sometimesbe taken from from the sale of any appropriate assets.
- Once all payments have been fulfilled, normally after around 48 months, all outstanding debts to creditors taking part in the deal are wiped off.
- After a set term, your credit rating will be reset, which grants you more flexibility to handle your financial situation from then on.
Your Assets in a Trust Deed Waterfoot
When matched against some other debt solutions, a Trust Deed can be an effective method of safeguarding your most vital assets while dealing with your debt.
Your Home – If you don’t actively prefer to, it is exceptionally uncommon that your home will have to be sold. Our staff always have your assets as a priority, ensuring you can remain in your residence.
Even so, there are times when you could be required to realise some equity (for instance, the worth of a property with a mortgage minus any charges towards it) to acheive the blessing of creditors. Any equity available to you will have been assessed when you reach out to us. It may need to be transformed into cash, or ‘realised’, but there are strategies of achieving this without you having to lose your home. These techniques will be described simply but in depth by our experienced advisers.
Your Car – If your vehicle is vital to your daily requirements, it is unlikely that you are going to have to lose it.
However, if the car is of significant worth you might need to trade it in for an earlier or more moderate model. This will release more money that can go to creditors, so we can draft a more agreeable proposal. If you are utilising a Hire Purchase or another form of finance arrangement to obtain your car, then it will be considered as part of your necessary monthly expenses.
Again, in cases where the motor vehicle you are ‘paying up’ is expensive, then this expenditure may need to be reviewed.
Check if you are eligible for a debt solution by getting in touch with one of our consultants now, and let us help you to join the tens of thousands of Scots across the nation in taking the journey towards a debt free life.