Having given Scottish debt help to over 20,000 people in Scotland by giving them valuable debt advice and appropriate solutions, it’s fair to say that we get a lot of questions on a daily basis from people struggling with unaffordable debts.
Here are some of the questions being asked in this week’s Trust Deed Scotland® QandA sessions.
What happens after signing the Trust Deed?
Once the Trust Deed has been signed it will be published on the ROI and within 7 days of registration, your creditors will be written to with details of your Income and Expenditure, Statement of Affairs and other statutory documents.
The Trust Deed will then be registered as protected following expiry of the 5 week period from the date of the initial publication on the ROI, provided a third in value or a majority in number of creditors do not object to the Trust Deed proposal.
Am I protected during a DAS application process?
Your approved money adviser will be able to assist you in advising the DAS Administrator that you intend to apply for a DPP – this is referred to as an “intimation”. An intimation will protect you from enforcement action by creditors for an interim period of up to 6 weeks prior to the submission of your DPP application.
You are only allowed to submit one such intimation in any 12-month period.
See also recent changes to the Statutory Moratorium allowing greater protection for you.
Will I be able to use credit whilst in a Trust Deed?
Whilst there is no legislation to restrict you from using credit, there will be no allowance given in your income and expenditure for any repayments, therefore, it is deemed inappropriate to incur further debt whilst in a Trust Deed.
This applies also to other Scottish debt help solutions including Debt Arrangement Scheme and Sequestration.
Do I need to be a homeowner to sign a Trust Deed?
No. There is no restriction on your living arrangements. You can be a homeowner, live in your partner’s home, private/council/housing association tenant or live with your parents.
Remember also that a Trust Deed is neither an unsecured loan, or a secured loan and varies from debt consolidation loans.
Why would a Trust Deed be the right choice for me?
One of the best aspects of a Trust Deed is a confirmed date when your payments will stop and your debt will be cleared, which is usually 48 months. If you can see an end to the problem then your future may a lot brighter. You can begin to think about life after debt.
Other benefits of Trust Deeds as a Scottish debt solution are:
- You will have only one affordable monthly payment to your creditors.
- All of your interest is frozen
- There is no initial set up charge
- You will be free of all debt within approximately 48 months
- All creditors are bound by the Trust Deed and are therefore prevented from taking legal action and all pressure from them is stopped.
However, this doesn’t always mean that a Trust Deed is a good idea for everyone.
We would always recommend getting expert Debt Advice in Scotland and at Trust Deed Scotland® we would give you a personalised illustration of the options open to you and the Advantages and Disadvantages.
Where can I get Scottish debt help?
There are a variety of debt solutions available in Scotland to help deal with your debts, regardless of the minimum or maximum amount of debt that you owe.
You can find out more about the solutions by visiting our online debt advice page
Or, if you would prefer to speak a qualified debt expert, you can give us a call on 0141 221 0999 to find out more. Any advice offered is free, balanced, and non-judgemental.
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