what are trust deeds?

Posted on Monday, 20 February 2012 in Latest NewsIf debt is placing a substantial strain on your finances and you are struggling to find the money needed for your monthly repayments, then you should carefully consider a Scottish trust deed; but what are trust deeds? To answer this frequently asked question, we at Trust Deed Scotland have devised the following guide to supply much needed clarification on what a trust deed is, who can apply for a trust deed and whether it's something you should be considering.

What is a Trust Deed?

Introduced in 1985 by the Government, a Trust Deed is an effective alternative to sequestration, otherwise known as bankruptcy, and is a voluntary agreement which utilises the 1985 Scottish Bankruptcy Act. The Trust Deed can only be implemented by a licensed Insolvency Practitioner (IP) who communicates with your creditors and proposes a repayment agreement which spans across 36 months. At the end of the 36 months the remainder of your debt is then completely written off, allowing those with substantial debt to write off 90% of their debt.

Who Can Apply?

To successfully apply for a Scottish trust deed there are a few requirements you need to meet in order to classify as an applicant. To see if you can apply for a Trust Deed, we have listed the necessary requirements below;

• You need to have at least £10,000 worth of debt or more


• You need to be a Scottish resident who has lived in Scotland for a minimum of 6 months


• You must be able to prove that you are struggling to repay your debts


• The Trust Deed will typically only write off unsecured debts


• The minimum monthly repayment is generally £150

It's important to note that only a fully licensed Insolvency Practitioner can handle negotiations and implement a trust deed in your behalf; subsequently it's important that you take care when making the decision to apply for a trust deed. If you still have questions or you would like to speak to a member of a team to discuss what are trust deeds, then get in touch with us today on 0141 221 0999.

Your Employment Status --SELECT-- Employed Unemployed Self-Employed Retired Student Your Total Unsecured Debts --SELECT-- £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £10,000 £11,000 £12,000 £13,000 £14,000 £15,000 £16,000 £17,000 £18,000 £19,000 £20,000 £21,000 £22,000 £23,000 £24,000 £25,000 £26,000 £27,000 £28,000 £29,000 £30,000 £31,000 £32,000 £33,000 £34,000 £35,000 £36,000 £37,000 £38,000 £39,000 £40,000 £41,000 £42,000 £43,000 £44,000 £45,000 £46,000 £47,000 £48,000 £49,000 £50,000 £51,000 £52,000 £53,000 £54,000 £55,000 Over £55,000 This includes unsecured loans, credit cards, council tax arrears, bank overdrafts etc.

Note - student loans cannot be included in a Trust Deed. Your Monthly Net Income This is your monthly take home pay including any other income

Example
Take home pay £1200
Child tax credit £200
Total net income £1400 Your Monthly Expenditure This includes all rent or mortgage payments and all other fixed outgoings that you pay each month.

Excluding your payments for your unsecured debt. Are You A Homeowner? --SELECT-- Yes No

(Homeowners) Estimated Equity None Don't Know 5000-10000 11000-20000 21000-30000 31000-40000 50000+ Equity Example:
Mortgage - 72k
House Value - 80k
Your Equity - £8000

Dont worry if you don't know your equity.
Just call us on 0141 221 0999

Your Nearest City --SELECT-- Glasgow Edinburgh Stirling Perth Dundee Aberdeen Inverness We have a network of Trust Deed providers throughout Scotland

Your location will help us recommend the best providers.

Title --SELECT-- Mr Ms Miss Mrs Other First Name Last Name Email Address Phone Number Why Do We Need Your Phone Number?

Although you will get an instant quote indication, we still need to contact you to get more detailed information regarding your financial circumstances.
All calls confidential.

Your privacy is important to us. Your Details are held in the strictest of confidence and we will only request information required to find your best solution. Your details will NOT be shared with third parties.

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