The advice on whether you can get a Trust Deed twice varies depending on the reason for you asking the question of can you have 2 Trust Deeds.
For example, you may have entered a Trust Deed several years ago, completed your Trust Deed term successfully, rebuilt your credit and then have the misfortune to end up with unaffordable debts for the second time in your life.
This isn’t unheard of in Scotland, where we’ve had a series of recessions over the last couple of decades, and of course, people can suffer ill-health or changes to their circumstances more than once in their lives.
Or, you have entered into a Trust Deed and for whatever reason, it hasn’t worked out for you and you’ve been discharged, then you may be looking at getting a Trust Deed twice for another reason.
Getting a Trust Deed twice when you’ve already successfully completed a previous one
Legally you are able to apply for a Trust Deed twice without any time limit. Your creditors would still vote on the Trust Deed in the same way as they did on the first arrangement. One advantage perhaps if you’ve been through the process already, is that you’ll have a better understanding of how it works, knowing what happens when a Trust Deed completes.
There is still a stigma attached to having personal difficulties that may have stopped you seeking help quicker than you did the first time around, and should you reach the point where you need help again, this may be playing on your mind.
We’re all now aware of the lifechanging ‘act of god’ that became the Coronavirus pandemic and as the country recovers, many will need to deal with the impact of debt, irrespective of however they may have been handling their finances previously.
Getting a Trust Deed when your last one failed
The other reason for asking if you can get a Trust Deed twice is when you’re in the situation of already being in an existing Trust Deed that has failed or is failing.
In this case, you can enter into a second Trust Deed, but you must have been officially discharged from the first Trust Deed before you enter the second arrangement.
Your chances of success on the second Trust Deed depend on factors individual to yourself, including the history of repayment during the first Trust Deed, how much debt was written off at the end, and your current level of debt.
If a Trust Deed does break down for whatever reason, it’s important for you and your debt expert to understand all the reasons why your Trust Deed failed.
If for example, you are unable to afford the contributions set out originally or felt pressurised to enter a Trust Deed rather than Sequestration or DAS, due to a lack of awareness of other options, or due to the perceived stigma attached to bankruptcy.
Trust Deed Scotland® have been advising on Scottish residents on the risks and benefits of the Trust Deed and also the advantages and disadvantages of the Debt Arrangement Scheme and any other solution that you may be eligible for. We’re aware of some organisations who may push individuals into a Trust Deed, sometimes by proposing an unrealistic payment plan. This tactic may benefit the organisation but does nothing for the client’s long-term prospects of becoming debt free.
Formal debt management solutions, whether formal or not, should ultimately have the exact same objective; to help you manage your debts to the best of your ability and to help you move on with your life.
Can I switch from a Trust Deed to another solution?
You can, only if discharged from your Trust Deed, explore other solutions that you feel may benefit your circumstances better at that point such as Minimal Asset Process bankruptcy.
Again, it comes down to what suits you best based on your own personal circumstances and the reasons you’re looking to be discharged from the Trust Deed. It may not be easy to get yourself discharged from a Trust Deed depending on your Trustee’s interpretation – ultimately you’ve made a commitment to resolve your debts using a formal solution, which is unlike a utility bill arrangement for example where you simply just cancel one provider and switch to another.
It is in both your own and your Trustees interest to find an amicable solution and should you be worried about your ability to repay your debts then you should speak to your current Trustee as soon as possible, and find out what options they are willing to offer you.
This is another reason why it’s best to get qualified debt advice from a leading debt company that is regulated and authorised by the FCA, such as Trust Deed Scotland® where we will always work with you to provide you with balanced, expert advice that results in you understanding the solutions being offered to you and how they will impact your financial future.
Where can I get advice on getting a Trust Deed twice?
Trust Deed Scotland® have been advising Scottish residents on the disadvantages and advantages of Trust Deeds since 2009.
In that time, we’ve given over 20,000 people a route to becoming debt free and gathered over 3,000 five star reviews on the independent reviews platform TrustPilot where we’ve become the number one company in the debt relief service category.