Trust Deed Scotland® is a Not for Profit – Community Interest Company, specialising in Protected Trust Deeds. If you have over £5,000 of debt, a Trust Deed is a formal agreement that can enable you to stop your existing payments to your unsecured debts such as credit cards, loans etc which you either can’t afford, or realistically pay off, and replace them with a new lower single monthly payment based on what you can afford, paid over a fixed timeframe (typically 4 years). After a Trust Deed is completed, all your qualifying unsecured debts are written off, and you will be debt free.
The advantage of a Trust Deed is that a licensed Insolvency Practitioner, commonly referred to as a ‘trustee’ will deal with your debt (creditors) for you, and ensure that the payments you make to your Trust Deed will be distributed out to them, this means that you can just get on with your life without dealing with all this yourself. A Trust Deed can also protect your house and car.
Not everyone qualifies for a Trust Deed, to find out if it’s an option for you, simply start with the online form below or simply call us on 0141 221 0999 Our advice is confidential, free, with no obligation and no setup fees.
Largest in Scotland
Non Profit
FCA Regulated
Free Advice
Personal Loan
£12,000
Credit Cards
£6,000
Store Cards
£1,600
Old Council Tax
£1,200
Total Debt £20,800
Old
£636
New
£175
Debt
written off
60%
* Subject to creditor acceptance * Payment subject to individual circumstances * Credit rating may be affected
As with all debt solutions the main impact for you will be it will affect your credit rating. Credit reference agencies will assess the level of risk based your on financial history which may include a trust deed however, once your trust deed is completed, you can start to rebuild your credit rating.
People worry that they will be chased for payments when the Trust Deed is running however, this is not the case. A protected Trust Deed uses formal legislation, meaning your creditors are legally bound not to contact you for any payments, as the payments for your debt will now come from your Trust Deed contributions.
This is a common question that people ask us, and the answer is yes – in a Trust Deed, your mortgage and car HP payments are ring-fenced so you would just continue paying them as normal – subject to approval, and completion. If your house or car were at risk you would be advised other options, your advisor will explain how we can protect your house and car. Try the Trust Deed Wizard ®
With our industry experience, a fantastic rate of over 99% of our Trust Deed proposals are accepted. If a creditor wanted to object, it would do so in writing within five weeks of your Trust Deed being proposed. Even then, it would only fail if that creditor represented over 33% in the total debt value or over one half in number. If 67% of creditors agree with the proposal, then the other creditors will still be legally bound by its terms, even if they object. In the unlikely event your Trust Deed did fail, your trustee would negotiate your case in an attempt to have it accepted , remember other Scottish debt solutions such as the Debt Arrangement Scheme (DAS) and Sequestration can also be available.
Almost all unsecured debts such as:-
Unsecured Bank Loans
Payday Loans
Credit Cards
Council Tax Arrears
Store Cards
Catalogues
Overdrafts
Credit Unions
Previous Mortgage
Previous Car HP
HMRC Bills (self employed)
The main unsecured debt than can’t be included is fines, penalties and student loans.
More information on trust deeds :- protected trust deed page
No setup fees are involved in setting up a Trust Deed. All administration fees are included in your monthly payments:
These are charged against the money you owe creditors, so will be agreed between you and your creditors at the start.
Your monthly payments are based on your disposable income, which is calculated by deducting your living costs from your income. This can include for example; mortgage/rent, bills, childcare, transport costs, food and even lifestyle costs such as haircuts and hobbies.
Most people find that after entering a Trust Deed their monthly outgoings are significantly reduced, alleviating stress from debt.
Any property you buy in the duration of your Trust Deed vests with the Trustee. You would also struggle to be accepted for a mortgage whilst in the Trust Deed.
However, it would depend on your personal circumstances such as your income and whether you can convince a Mortgage Advisor you can reliably make your mortgage payments.
There’s no particular age restriction however each case will be considered on its own basis and risks.
A ‘Protected’ Trust Deed is the status your Trust Deed gains when the majority of your creditors agree to it’s terms and the AIB or ‘Accountant in Bankruptcy’ to protect it.
After your Trust Deed is registered, all creditors have the opportunity to object. However, if either a majority in number of creditors or a creditor with over 33% in debt value object within five weeks, then it can fail to become protected. If they don’t object your Trust Deed will be presented to the AiB for protection.
Getting your Trust Deed protected means that your creditors can no longer pursue you or take any action to recover the debt.
If your biggest creditors don’t agree to your Trust Deed, it’s not ‘Protected’ and therefore not legally binding.
At Trust Deed Scotland® we have a 97% success rate for protection and make the entire process as transparent and stress-free as possible. If we can see a risk that a Trust Deed may not gain protection we will always try to manage your expectations and let you know beforehand.
If you’re a homeowner and your home is worth more than the amount owed on your mortgage loan, you may have to release some of its value.
The gap between the value of your home and mortgage is called equity. Your advisor will discuss this with you, and if necessary, any equity arrangements will be organised before entering a trust deed.
You will be discharged, and your qualifying debt will be written off, leaving you debt free,, unless you’ve agreed otherwise with your trustee beforehand.
Legally, your creditors can no longer pursue you for the remaining amount leaving you debt-free. A Trust Deed typically lasts for 48 months but it may be extended by a year if you want to protect your assets such as your home and car.
In our recent guide on how to track down your debts, we discussed how a debt problem can be all-consuming, and that small purchases and loans add up fast. Most of the time, you will find yourself bogged down trying to make ends meet, always thinking about how to afford the next payment. This leaves … Continued
