Trust Deed Scotland - Official Website - Life After Debt

What is a Trust Deed?

As an ever increasing number of Scottish residents fall into financial difficulties, many more people are choosing to manage their debts with a Trust Deed but what is a Trust Deed?

Not to be confused with a debt consolidation loan, a Trust Deed actually uses government legislation to enable people living in Scotland who are financially struggling with debts generally over £10,000 to manage their debts within a realistic timeframe. The duration of the repayment period is typically 36 months and you will pay an agreed monthly contribution based on your affordability and then when this arrangement comes to an end, all of your remaining debts are legally written off.

This type of Scottish debt help is a voluntary agreement between yourself and the people that you owe money to and is best suited for people who have a regular income and who are able to commit to a repayment schedule which will become legally binding. The added advantage is that it prevents your creditors from adding further interest and charges and also from taking any further action against you. In England, Northern Ireland and Wales there is a similar solution known as an Individual Voluntary Arrangement. Scottish Trust Deeds can be explained as the equivalent in Scotland but with a few differences.

How does a Trust Deed work?

One question we often get asked is 'how does a trust deed work?' It is important to understand that only an Insolvency Practitioner can set up a Protected Trust Deed. On successful protection and then completion of your agreed repayment, you could write off up to 90% of your total unsecured debts (excluding administration fees which can vary, see: Trust Deed Fees). There are many Insolvency Practitioners based in Scotland with varying levels of quality and service, how can you be sure you are getting the most suitable company to administer your Trust Deed?

Most marketing companies are 'owned' by an insolvency company and some may charge you a setup fee or an 'Assessment' fee AND can also take up to an additional two months contributions before you even start your actual agreed repayments. During this time, you will notice that interest and charges increase and certainly the longer timescale will no doubt cause you further anxiety, bearing in mind that it can take 5-6 weeks to setup a typical plan which goes onto protection status.

At Trust Deed Scotland we are 100% independent and we pride ourselves on offering ethical debt advice. We do not charge you any setup fees or any other additional payments, we just use our industry knowledge and experience to recommend solutions to you and for your Trust Deed based on our stringent criteria (see: About Us for more information). We aim to ensure that your Protected Trust Deed proposal is successful and your best interest is always our top priority. Using this type of debt management solution is not a decision that you should take lightly and while it does sound good in writing, you may also benefit from other types of Scottish debt help including a Debt Arrangement Scheme (DAS). Only by discussing your details with a money advisor will you be able to establish if you are eligible for this and any other debt solution.

Any action that you take to manage your debts will have associated advantages and disadvantages and therefore when considering Scottish Protected Trust Deeds you should take note of the following:

Advantages of a Protected Trust Deed

• Quick to set up, typically 5 to 6 weeks.
• Only pay back what you can afford.
• Instantly reduce your monthly outgoings and start living again.
• In almost all cases, stay in your home and keep your car.
• Be debt free in typically 36 months.
• Include all your eligible unsecured debt into the Protected Trust Deed.
• Creditors cannot take legal action once your Trust Deed is protected.
• Suitable for property owners, individuals, couples, and business owners.
• Could be completed sooner if a 3rd party offers a lump sum payment.

Disadvantages of a Protected Trust Deed

• You will not be allowed further credit while on a Protected Trust Deed.
• After completion of the Trust Deed, it will be more difficult and more expensive to get credit for a further three years as it may stay on your credit report during this time.
• If your Trust Deed fails, your creditors may request to have you sequestrated (Scottish Bankruptcy). This is unlikely, however this will always be discussed before your Trust Deed commences.
• Certain occupations may need prior approval - Please call 0141 221 0999 for advice.
• If you fail to keep up the repayments of your Trust Deed then your assets may be at risk and sequestration proceedings could start against you.

We hope that we have helped to answer the questions of what is a trust deed and how does a trust deed work, but if you do have any other questions, please feel free to browse our frequently asked questions section to find out more or use the Trust Deed Calculator to see if you qualify for one.

Alternatively, you can ask us to clarify any concerns that you have by calling us on 0141 221 0999. Your enquiry will be handled professionally and in confidence.

Bear in mind that there are other ways of resolving finances difficulties in Scotland such as the Debt Arrangement Scheme.

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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