What is a Trust Deed?
A Trust Deed is a formal insolvency solution that could be agreed with your unsecured lenders if you're a Scottish resident.
Basically, if you have a significant amount of debt on things such as credit cards, personal loans and overdrafts and you can't repay everything you owe in a reasonable amount of time, you could be eligible
for a Trust Deed.
You'll agree to repay as much as you can realistically afford for an agreed period (usually 3 years). Your lenders will also agree to stop any further action and write off any remaining debt (included in
your Trust Deed) once your Trust Deed has successfully ended. Any debt that isn't included in your Trust Deed will remain outstanding.
Trust Deed Scotland
If you're a Scottish resident, there are some debt solutions that are exclusively available for you - and a Trust Deed is just one of them.
If you live in Scotland and you have a significant amount of unsecured debt that you can't repay in a reasonable amount of time, a Scottish Trust Deed could be the ideal way of repaying as much as you can
afford towards your debts - and writing off whatever you can't afford to repay on successful completion.
What's more, even if a Trust Deed isn't right for you, we could help you find another solution that is.
Protected Trust Deeds: the facts
Once a Trust Deed becomes 'protected', both you and your lenders will have to stick to all the terms you've agreed.
With a Protected Trust Deed, you could:
- Make a single payment per month, reduced to a level you can afford after taking into account your food, bills and any other essentials
- Be free of your unsecured debts in just 36 months ( in most cases)
- Pevent your lenders from taking further legal action
- Have interest and charges frozen on your included debts
- Be able to stay in your home if you're a homeowner (equity release may be required in the final year)
- Avoid sequestration (Scottish bankruptcy).
How does All About Money help you with a Trust Deed?
If you're looking for debt advice and help in Scotland, we could help you. We understand that dealing with serious debt problems can be tough - which is why we're on hand, so you don't have to cope
with your debts alone.
When you feel you're ready to take action with your finances, one of our expert advisers is just a phone call away. You can talk to us safe in the knowledge that anything you tell us will be held in the
strictest confidence. Tell us about how much you earn, your monthly expenditure (from bills and travel costs to making sure the kids have everything they need), and all about your debts - and we'll be able
to work out how much you can realistically afford to repay every month, while still leaving room for the things you need.
If you're reluctant or nervous about talking to your lenders, there's no need to worry - we'll take care of all this for you. We'll send your Trust Deed proposal - showing exactly how your Trust Deed
would work - to your lenders and make sure the details are put in the Edinburgh Gazette (a publication read by lenders that contains details of Scottish insolvencies).
Then, unless those lenders who 'hold' more than a third of your total unsecured debt - reject your Trust Deed, it'll go ahead. As long as you keep up with your payments and everything you agreed to,
you can set your sights on being free of your unsecured debts in just 36 months - which could certainly be a future looking forward to.
Remember, however, that you may be asked to release some equity in your home during a Trust Deed. Your Trust Deed's impact on your credit rating can mean that it's more difficult to find a remortgage -
and that you may pay more if you do. If your Trust Deed fails you may have to enter bankruptcy.
Is a Trust Deed in Scotland right for me?
No two people's debt problem is ever exactly the same - and different problems call for different answers. We'll only ever recommend a Trust Deed if we're sure that it's the best step for you.
Whatever situation you're in, if you're:
- A Scottish resident, and
- You can't keep up with your unsecured debt payments
We could help you find a way out of debt that works for you. You can call 0800 195 2911 to find out if you're eligible for a Trust Deed, or leave us your details and we can call you back. In
the meantime, you could answer a few simple questions to get a basic idea of whether a Trust Deed is suitable for you.
It's worth bearing in mind that even if a Trust Deed isn't the best way of repaying your debts, we could still find you an alternative solution you'd be better off taking.
Trust Deeds: pros & cons
Before agreeing to a Trust Deed, it's important to look at the advantages and disadvantages:
Pros
Entering a Trust Deed will:
- Give you a single, affordable monthly payment
- Protect you from any further action from your unsecured lenders
- Allow you to stay in your home if you're a homeowner
- Give you a firm date you'll be free of your included debts - usually after 3 years
Cons
However, like all debt solutions, there are some downsides too:
- Your credit rating will be affected for six years
- If you're a homeowner, you may have to release some equity in the final year
- If you don't keep up with your payments, you could face sequestration (bankruptcy)
Have we answered all your Trust Deed questions?
We help thousands of people deal with their debt problems every day: whatever your situation, we could help you find an approach that's suitable for you.
If you have a question about Trust Deeds that we've not answered, our frequently asked questions page could help you.
Alternatively, if you think a Trust Deed could be right for you, talk to our team on 0800 195 2911 for more information - and we could give you the debt help you need.
Get expert Trust Deed adviceIf you would like more information, talk to our team today.
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