Lower monthly repayments, deal with your creditors and be discharged from most of your debts in 48 months with a Protected Trust Deed in Scotland…
What is a Trust Deed?
A Trust Deed is a formal agreement between you and your creditors to pay back what you can afford towards your debts. Once Protected they are an extremely powerful and legal tool to help you back on the road to financial stability. A Trust Deed is designed for people who have taken out too much debt and are struggling to meet their monthly repayments. The minimum repayment period for a Trust Deed is 48 months* (4 years) unless an alternate arrangement is agreed. You will be required to pay a set amount per month for the 48 month period. At the end of term, provided that you have met your obligations and the Trust Deed is not extended, you will be discharged from any obligations and outstanding unsecured debts bound by the start of the arrangement.
What about further interest and charges?
Once you have entered into a Trust Deed all creditors bound by thearrangement must not apply further interest and charges. As long as the Trust Deed becomes Protected, no legal action will be taken against you by your creditors.
How much does it cost to setup?
There is no upfront charges for setting up a Trust Deed, but if you use a third party for advice or help with the preparation before it is granted, they may charge and submit a claim to the Trustee which will then rank with other creditors. Trust Deeds are designed to get you out of debt, not to increase it! The amount you and your Trustee agree you can afford to repay each month (plus any equity, if applicable) is normally the only amount you'll ever be asked to pay. Your creditors are effectively agreeing to receive less back so that your Trust Deed Company can take their Trust Deed fees for managing the arrangement. There are a couple of exceptions to this general rule that you should be aware of before committing to a Trust Deed. If your home increases in value or if you are the beneficiary of an unexpected lump-sum payment, or if your surplus income increases whilst you are subject to the agreement, you will have to pay more into your plan and if that enables you to satisfy your debts in full, you may be liable to pay an additional amount to cover your Trustee's fees.
How long does it take to set up?
Unlike an IVA, Each Trust Deed requires a statement of affairs to be completed which usually takes on average 2-4 weeks, but it is dependent on your circumstances. Once this has been completed and you are happy you understand the implications of entering into a Trust Deed the next step is to notify the Accountants in Bankruptcy (AiB) which usually takes 7 days. Your proposal is then put to your creditors for approval. As long as 75% or more agree your Trust Deed will be approved and you will no longer have to deal with your creditors anymore. You simply make the arranged payment to your Trust Deed Company for the set period (usually 48 months), and once this has expired you are discharged from your debts covered by the agreement and no longer have to worry.
How do I apply?
Simply fill out the form here or give us a call on 0800 043 2027 and speak to one our experienced advisors without obligation or commitment. They will talk you through the process and help you calculate a monthly repayment figure that you can afford. The relevant documents will then be sent out to you to check over and sign. Once we recieve the paperwork from you we can then start to process your case.
Do you do home visits?
Yes. We realise some people would prefer a face to face meeting and we are more than happy to visit you at your home if requested. Or you can visit us at our office; 58 Elliot Street, Glasgow G3 8DZ. Click here for map.
*The typical period for a Scottish Trust Deed is 48 months, although depending on affordability this could take longer.
Calls charged at local rates. Edinburgh and Aberdeen dialling codes are for your convenience, your query will be redirected to our Glasgow Office. Subject to eligibility and acceptance. Fees are Payable. Debt write off only applies to unsecured debts and only on completion of a Trust Deed. Alternative solutions may be offered. If your Trust Deed fails it may lead to Bankruptcy. Your ability to borrow further credit will be affected for 6 years. Homeowners may have to release the equity in their property.