The stress of being in debt can dominate every aspect of your life. It is like a shadow following you around, gently reminding you of your troubles even when you are doing something entirely unrelated. However, we find that for a lot of our clients this is not even the worst part of owing money to creditors.
Creditor harassment can be a vile and terrible thing. On the one hand, when companies are owed money, they have every right to take measures to get it back. On the other, their methods can often be over the top, leading to stress and mental health issues for the receiver. We want to help you make this stop and offer a number of solutions that will make it illegal for creditors to try and make contact with you.
What is a Formal Solution?
While all of the plans we offer are effective, formal solutions like Trust Deeds come with extra benefits and protections. Once your Trust Deed has been accepted and has gained ‘protected’ status, it has become a formal and legally-binding solution. This means that provided you meet all of your repayment obligations, your creditors must follow specific guidelines.
For starters, they are legally bound by the agreement. This means that they cannot alter the deal, pull out of the deal, or attempt to get any money from you other than what we distribute to them from your monthly sum.
Secondly, they are legally prohibited from trying to get in contact with you in any way, shape, or form. It is a criminal offence on their part to phone you on any of your contact numbers or to send a letter to any of your addresses. This is an essential and overlooked feature of Trust Deeds; not only can they help you to get on top of your debt, but they will put a swift end to the stress-inducing demanding letters.
What Happens If My Creditors Need to Contact Me?
First of all, it is important to keep in mind that after your Trust Deed has achieved protected status, it is not up to your creditors to decide when they need to contact you. Instead, we will become your official trustee, meaning that they have to contact us instead. Your assigned advisor can read all of the information coming in and can pass on anything relevant upon your yearly review.
However, there should be little to no relevant information that we actually have to pass on to you. Provided that you are keeping up with your monthly repayments, there won’t be much reason for your creditors to try and get in touch with you. After all, they are getting the money that they have legally agreed to, and everyone involved is aware of what your path towards financial stability will look like.
In short, your creditors will not have much reason to contact you. When they do, they will get in touch with us instead, and if there is anything that you need to know we can relay the information to you in a friendly manner.
What Happens If My Creditors Do Contact Me?
The truth is, if your creditor does contact you asking for money after you have entered into a formal solution like a Protected Trust Deed, it is likely a mistake. There may have been cross-communications in their office, or perhaps it was a letter that was already scheduled to be sent out before the solution was put in place.
Whatever the reason, you can either contact the creditor directly and explain the situation or get in touch with your advisor at debt free life. We will be able to reach the creditor and explain to them your new situation, outlining the illegality of their ongoing communications with you.
The rules about creditor harassment really are strict and saying that a formal solution will put an end to their letters and phone calls is not just a slogan. You will be genuinely protected from the stress and trauma that comes from the intrusive methods that creditors use to reclaim their money.
Am I Eligible for a Trust Deed?
To be eligible for a Trust Deed, you will have to meet the following criteria:
- You have to be living in Scotland or have lived there within the last twelve years.
- You need to have £5000 or more of unsecured debt.
- You have to be in a position where you are insolvent (cannot make your repayments).
- You must be able to contribute some form of monthly repayment, either from income or appropriate assets.
If you think that this matches your current circumstances, then you may well be eligible for a Trust Deed.
How Do I Apply for a Trust Deed?
In order to apply for a Trust Deed or any form of debt solution, the first step is to get in contact with us. The easiest way is to give one of our friendly advisors a call directly on 0800 808 5124.
Alternatively, if you cannot talk on the phone right now, take a moment to complete our debt calculator. After we have received our details, one of our personnel will be in touch as soon as they can to discuss how we can move your situation forward.
Finally, if you are not comfortable talking on the phone at all, start a live chat on this site. One of our advisors will be happy to talk through your situation with you and offer guidance on what your next step should be.