20,000 Helped
No. 1 Rated
FCA Regulated
No Setup Fees
Trust Deed Scotland® is one of Scotland’s largest debt solutions providers, specialising in protected Trust Deeds and DAS. If you have debt, and if either your financial circumstances have changed, or you have just overcommitted, we can help. We can enable you to legally stop your existing payments to your unsecured debts such as credit cards, loans etc which you either can’t afford, or realistically pay off. These can be replaced with a new lower single monthly payment based on what you can afford, paid over a fixed timeframe (typically 48 months). A Trust Deed can even write off the debt you can’t afford to pay.
Once in place, we deal with your creditors on your behalf, they are legally not allowed to contact you, this means that you can just get on with life without worrying about debt. We can also protect your house and car.
To find out what your options are, simply start with the online form below or just call us on 0141 221 0999
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
Length – Trust Deeds last for 4 years. After this time, any remaining debt is paid off. With Debt Arrangement Schemes, they last until all your debt is repaid.
Amount of debt – to qualify for a Trust Deed, you must be in at least £5,000 of debt. For Debt Arrangement Schemes, there is no minimum debt level.
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.
Yes, we offer advice on all Scottish debt solutions and if a Trust Deed isn’t the right for you, there are other options such as:
When you enter a Protected Trust Deed your future interest charges can be frozen. After signing a Trust Deed, you’ll be paying back the debt you already owe but not racking up any more debts as you go.
Yes. Usually, credit reference agencies will hold information about Sequestration for 6 years from when it was first granted. Your details will be also added to the Register of Insolvencies for 5 years.
For individuals, Debt Arrangement Schemes can last for a ‘reasonable’ length of time. For businesses, they last for 5 years maximum.
Trust Deeds in Scotland are only available to residents who have lived in Scotland for at least six months before they apply. You would typically have at least £5,000 of unsecured debts to qualify. This typically includes credit card debts, bank overdrafts, and unsecured personal loans. If you want to find out if you’d qualify for a Trust Deed or alternative solutions; use our Trust Deed Wizard tool.
If you are based in England, Wales or Northern Ireland then debt solutions such as an IVA would be a more suitable alternative.
Yes. Yes, a Trust Deed does affect your credit rating because you are breaching the original contractual terms of the credit agreement.
Consider that if you have already missed payments and defaulted on your agreements due to having unaffordable debts, then your credit may already have been adversely affected. If you continue to struggle with your debts and make minimum payments, you will have an increased risk of being unable to repay your debts within a realistic time period, meaning the chances of defaulting on your original agreements will increase as a knock-on effect.
Contact Trust Deed Scotland on 0141 221 0999 for expert advice today. Try our Trust Deed Wizard tool to find out what your options could be.
4 years. Typically a Trust Deed in Scotland lasts for 4 years. You will make one fixed regular affordable monthly payment Your trustee who distributes the money to your creditors, minus their fee for arranging and managing the Trust Deed.
However, in some circumstances, it could take you longer to complete the Trust Deed. This would be discussed with you in more detail. Call Trust Deed Scotland today and find out how we can help you.
A Trust Deed in Scotland is a legally binding, voluntary agreement between you and your creditors to repay your debts at an affordable level, typically over a period of 48 months. Managed and administered only by a Trustee, at the end of the term, any unsecured debts left will be written off – allowing you to enjoy a life after debt.
In order to qualify for a Trust Deed in Scotland, you will have at least £5,000 of unsecured debt. Call Trust Deed Scotland today and find out how we can help you. We’ll be able to tell you what a Trust Deed is, and its Pros, Cons, and Alternatives such as the Debt Arrangement Scheme.
If you’re experiencing financial difficulties and are assessing your options to repay your debt, you may have considered that a consolidation loan is the best way to consolidate debt for you. But don’t discount the options of Trust Deeds, Debt Arrangement Scheme, and alternatives because there are circumstances where one of these debt management tools … Continued
