Everything you need to know about getting a Scottish Trust Deed.
As the title suggests, it is only available to residents in Scotland and will generally last for a period of four years, however sometimes a longer period is considered and that typically may increase the duration by a further 12 months, or longer depending on the circumstances surrounding the case.
Scottish Trust Deeds are legally binding and are designed to help those with a debt level over £5,000 and are struggling to repay their debts.
The Protected Trust Deed as it’s more formally refered to uses official legislation to negotiate an agreement between an individual and the companies that they owe monies too, arranged by an Insolvency Practitioner (IP) who acts as Trustee.
When you apply for a Scottish Trust Deed an assessment of your affordability will be carried out to work out what you can reasonably afford to pay each month.
This Trust Deed suitability-checker will document your income minus your day-to-day living expenses e.g. mortgage, household bills, travel expenses and so on. As well at the Scottish Trust Deed, you would also be assessed for your eligibility for alternative solutions, including the Debt Arrangement Scheme.
After you get a Scottish Trust Deed, any remaining unsecured debts will be written off, including the interest and charges that were frozen at the beginning of the process.
Finally, a Scottish Trust Deed is not a debt consolidation loan. You will not be borrowing money, you will not be credit-checked for approved finance.
Getting A Scottish Trust Deed – 8 Stages In the Process
With so many options and different points-of-view, we know that it can be confusing to understand and decide if this is the right form of Scottish debt help for you.
We have broken the Trust Deed Scotland® process down into 8 steps to explain how getting a Scottish Trust Deed works.
- Trust Deed Scotland® will arrange an in-depth review of your financial situation, provide you with a personalised illustration and agree with you on what a realistic yet affordable monthly payment looks like and agree with you how your assets will be treated.
- Only when you’re happy to go ahead with a Scottish Trust Deed, your Trustee will go over the terms of the arrangement and once you are 100% satisfied with the terms, will you then sign it off.
- After you have signed your Scottish Trust Deed, your Trustee will then make a proposal, on your behalf, to your creditors. The Trust Deed proposal will advise them of your income, expenditure and offer of how much you can realistically afford to pay each month.
- Your Trust Deed is then registered on the formal bodies website, where your creditors can access it. The formal body that regulates the process is known as the Accountant in Bankruptcy (AiB).
- The people you owe money to are sent the proposal within 7 days of the Trust Deed advert on the official website. Creditors are then given 5 weeks to review the proposal and either accept or reject the terms. They must contact your Trustee as creditors at this point can’t directly contact you.
- If the majority of your creditors accept the proposal then the Trust Deed will gain protected status. If the people you owe money to fail to respond to the proposal, it is believed that they have agreed to the terms.
- As soon as your Scottish Trust Deed is registered as protected, your creditors can no longer take any legal action against you to recover any debts and any interest and charges on your debts are frozen.
- All you need do then is make your payments as agreed, complete an annual Scottish Trust Deed review to check your personal details, income and expenditure details are up-to-date and look forward to Life After Debt.
When you apply for a Scottish Trust Deed, you will also have an understanding of all available solutions open to you and the key facts that ultimately help to put you in control of the decision making process with the advantages and disadvantages fully discussed and understood.
Can I Negotiate Getting A Scottish Trust Deed Myself?
Only a licensed Insolvency Practitioner can set up the arrangement on your behalf, unfortunately.
There are many licensed Insolvency Practitioners in Scotland, and while it’s true that there may be slight differences in the quality of service you may receive from them, all IPs are regulated to ensure that you, the client and your needs are at the forefront of the process.
Sequestration, Scottish bankruptcy sounds daunting. And it’s fair to say its the most drastic solution you can undertake to resolve your debts but in the right circumstances, it can help you to get out of debt.
While we often advise against it, a loan can be a way of consolidating debt in Scotland.
Why Trust Deed Scotland?
At Trust Deed Scotland® we’re really proud of our reputation and our achievements within the industry.
20,000 People Helped – The number of people we’ve helped with debt in Scotland over the last decade or more shows the in-depth level of experience we have.
No.1 Rated On Trustpilot – We’ve gathered thousands of reviews on Trustpilot, which are independently audited and verified by the platform themselves.
Having debt still has a stigma attached to it, however, we’re pleased that our service compels people to openly write reviews about us.
Not only does it highlight how well we’re doing as a company but also allows people to read about how other people got themselves into financial difficulties, helping them to understand there really is no need to feel embarrassed, or ashamed about having debt.
99% Creditor Acceptance Rate – When you apply for a Scottish Trust Deed with us, we will use our industry experience to give you everything you need to know and whether it is likely that the application will be successful. The pros and cons will always be explained, and you may decide that an alternative solution like the Debt Arrangement Scheme is more favourable for your needs.
60% Average Reduction In Monthly Payments – The amount you repay each month will be based on you and your lifestyle and we’re able to reduce the amount you repay on average by 60% each month.
No Setup Fees – You’re experiencing financial difficulties. We have strong ethics. Therefore setup fees, finders fees, charges for advice; whatever way its described – none of these make sense to you, nor us. This should be true for many other providers of Scottish Trust Deeds, but cannot be guaranteed. If anyone says otherwise, walk away.
FCA Regulated Advice – Some companies still offer an ‘introducer’ service without the right level of experience. Predominantly, the same types of people who cold call, send text messages or purchase data lists. Not only are we FCA regulated, we also have internal commitments to undertaking rigorous training and compliance. 100% safe, secure and confidential. You can also take comfort in knowing that your data is safe with us as we don’t sell your details onto third-parties.
Registered Trademark – We’re the official Trust Deed Scotland®. Our brand name is protected to ensure that no copycats can trade falsely using our strong brand name.