Trust Deeds

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.

The minimum debt level is £5,000, this can include most unsecured debts from:

• Unsecured Bank Loans
• Payday Loans
• Credit Cards
• Council Tax Arrears
• Store Cards
• Catalogues
• Overdrafts
• Credit Unions
• Previous Mortgage (shortfall)
• Previous Car HP (shortfall)
• HMRC Bills (self-employed)

You don’t need to pay to set up your Trust Deed but there are costs involved in running a Trust Deed, such as:

1) A fixed administration fee

2) A percentage fee based on the amount you’re paying back

At the moment all Insolvency Practitioners charge fees and there’s no free service, however these fees are included in the monthly amount that you agree to pay back. These fees are agreed by your creditors and put simply, they are absorbed by the creditors as they are writing off a proportion of your debt.

There’s no particular age restriction however each case will be considered on its own basis and risks.

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 

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.

The most important thing to remember is that tell your trustee of any financial changes that will prevent you to stick to the Trust Deed payment agreed with your creditors. Your trustee will work with you help complete your Trust Deed if your circumstances have changed while the Trust Deed is running.

In the context of Trust Deeds, your Licensed Insolvency Practitioner will take on the role of Trustee, they will administer the Trust Deed. They will become the liaison between you and your creditors. As long as you make the reduced monthly payment, your creditors can no longer call you up, email you or contact you directly in any way.

Your credit history will be affected for 6 years from the Trust Deed start date.

You can apply for new credit but in practice, t may be difficult to obtain during this time. It will depend on the individual lenders but it may be difficult to be accepted until you’ve built your credit rating up again, or you could be offered a higher interest rate.