Question 1

How long does a Trust Deed last in Scotland?

Accepted Answer

Trust Deeds offer a way out of unaffordable debt and the chance to rebuild your credit once the Trust Deed term has ended. The Trust Deed is a debt solution that’s only available to residents of Scotland and typically lasts for 48 months although there are some factors that can affect the length of time that a person would be in a Trust Deed. One of the major factors in the length of your Trust Deed is whether or not you own your own property. Many individuals have concerns that their house might have to be sold when they enter a Trust Deed, but this is not automatically true, as the outcome largely depends on the level of equity available in the property. A popular alternative to a Protected Trust Deed in Scotland is known as the Debt Arrangement Scheme (DAS) which offers much of the same protection that a Trust Deed does, but without the 'debt write off' aspect. However, depending on the total debt you have, and your ability to repay - it is possible that you could repay your debt back quicker than the time it would take you to repay your debts using a Trust Deed.

Using property as part of a Trust Deed

When considering how long does a Trust Deed last in Scotland - If your home is mortgaged, the equity figure will be the property’s value minus the amount needed to repay the mortgage. There is minimal benefit for the Trust Deed administrator to use the property as part of a settlement if the equity is minimal. Similarly, should you decide to sell your home, you may be able to end the Trust Deed earlier than the initial 48 months if your creditors are repaid in full plus interest and all the Trust Deed costs have been covered.

Question 2

What happens at the end of a Protected Trust Deed?

Accepted Answer

At the end of your Trust Deed term, any debts remaining are written off, and your details are removed from the Trust Deed register within three months. You’ll also receive a certificate of completion from your Trustee to confirm that you’ve met your obligations. Where your credit file is concerned, it typically will be amended to show that the Trust Deed has been successfully completed. It will be difficult to obtain credit or other borrowing for several years after the Trust Deed.

Question 3

Is a Trust Deed a good idea?

Accepted Answer

Trust Deeds can be a valuable aid to help you manage unaffordable debts and look forward to a lift after debt. However, they are not right for everybody and there may be more suitable debt management solutions for you. You can call us on 0141 221 0999 for confidential advice tailored to your needs. Our non-judgemental and experienced debt advisers have helped over 25,000 people and that advice includes all other debt management techniques in Scotland

Question 4

Trust Deed alternatives?

Accepted Answer

There are alternatives such as the Debt Arrangement Scheme. Minimal Asset Process and Sequestration. The solutions offered to you will depend on your affordability and your situation. Every person's situation is unique and therefore the options open to them will vary from case to case. You may find that when you ask the question of how long a Trust Deed lasts in Scotland, how long it will take you to become debt-free if you pursued these other options.

Category: Credit Card Debts

Category: Credit Card Debts

Category: Credit Card Debts

Category: Credit Card Debts

Category: Credit Card Debts

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