Do I Need A Minimum Level of Debt to be Considered For A Trust Deed?
As with all debt solutions in Scotland, Trust Deeds are specific to your individual circumstances.
Typically, you would have a minimum level of debt over £5,000 to qualify for this debt solution.
In 2019, with over 10,000 Protected Trust Deeds, the average total debt owed to creditors was £14,900*.
However, there are many considerations selecting the correct solution for you, that’s why we need you to contact us for more information – to establish the facts and then provide you with a personalised illustration of all the options open to you.
Ultimately, all debt advice is tailored to you, and any company that has your best interests at heart wouldn’t try and ‘sell’ you into a solution that is not fit-for-purpose.
Trust Deeds have helped thousands of people look forward to life after debt in as few as 48 months; however, in order for the Trust Deed to be successful for you, you would need to have an income that allows a regular repayment over that time. The more important question is not such do I need a minimum level of debt to be considered for a Trust Deed, but can I afford to make regular payments to my Trust Deed and is the Trust Deed the best solution for you, depending on your circumstances. If not, there are alternatives to a Trust Deed.
Trust Deeds are only available to Scottish residents and you must have lived in Scotland for at least six months before you apply. If you are based in England or Wales, then debt solutions such as an Individual Voluntary Arrangement may be a suitable alternative for you.
Who qualifies for a Trust Deed?
To qualify for a Trust Deed you would usually:
- Have at least one debt
- Have over £5,000 of debt
- Be resident in Scotland
- Be able to repay your debt(s) after you’ve paid your living expenses
- Have an income
Find out more about Trust Deed Pros and Cons.
There is no maximum level of debt as such, however, affordability and being able to repay a contribution is important.
Do I Need A Minimum Level of Debt to be Considered For A Debt Arrangement Scheme?
There is no set minimum level of debt required to be considered, however, Trust Deed Scotland typically suggests that the Debt Arrangement Scheme may an option if you have over £3,000 of unsecured debt.
Debt Arrangement Scheme is designed to help individuals, couples, and businesses repay their unaffordable debts. It also helps creditors recover debts they are due. To be eligible for DAS, a debtor must have one or more debts and:
- Be a resident of Scotland
- Have sought the advice and assistance of a DAS-approved money adviser
- Want to repay their debt without the threat of creditors taking legal action against them
- Have a reasonable level of disposable income after meeting their basic needs
Joint Debt Arrangement Scheme
Couples who are each liable for a debt which may be included in a debt payment plan. You may apply for a joint debt payment programme if you are:
- Spouses or civil partners of each other
- Living together as spouses or civil partners of each other
- Both applicants must consent to the proposal
Business Debt Arrangement Scheme
Self-employed individuals, partnerships, trusts or unincorporated bodies can also seek to repay their debts over a period of time, up to a maximum of five years, through DAS.
Businesses excluded from the Debt Arrangement Scheme are:
- Limited or public companies
- Not formed under Scots law
- Those established or carrying on business outside of Scotland
Find out more about the Debt Arrangement Scheme Pros and Cons.
Do I Need A Minimum Level of Debt to be Sequestrated?
To qualify for Minimal Asset Process, your debts would be more than £1,500 but less than £17,000. In order to apply instead for Sequestration, your debts total more than £3,000.
It will cost you £200 to apply for Sequestration via the full administration route or £90 if applying via the Minimal Asset Process route.
There are no waivers or exemptions for this fee and it is non-refundable. Payment can be made by cash, cheque, debit card, or postal order. There is also an option to pay online.
Find out more about the advantages and disadvantages of Sequestration.
Where Can I Get Online Debt Help In Scotland?
You can get online debt help today with Trust Deed Scotland®.
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.
*Information provided by the Scottish government