Scottish trust deeds are a powerful debt solution for individuals living in Scotland who wish to become debt free without any sale of assets or trouble from creditors and bailiffs.
Of all the Scottish debt solutions the Scottish trust deed (otherwise known as a protected trust deed, PTD) is one with a lot of legal power and is backed by the UK Government through legislation.
Other debt solutions in Scotland include the debt arrangement scheme (DAS), Sequestration (the Scottish bankruptcy), debt management is also another option for residents of Scotland, however that is a less formal debt solution intended for smaller debts.
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So What Is A Scottish Trust Deed?
A Trust deed is a formal legally binding debt solution which helps individuals in debt become debt free, in a similar way to the IVA (Individual Voluntary Arrangement), it involves a consolidated affordable monthly repayment which the debtor will be obliged to pay towards your debts each month.
This legally binding agreement gives you legal protection against creditor hassle, home visits from bailiffs and other
The Scottish Trust Deed is intended for people in serious debt and is only available in Scotland.
The Trust deed usually lasts for a term of approximately 4 years, after which any remaining debt is wiped clear. It is designed to provide a clear path to debt freedom without some of the more painful elements like with bankruptcy (sequestration).
Trust deeds (otherwise known as ‘deed of trust’) can be considered Scotland’s answer to an IVA.
How Can A Scottish Trust Deed Help Me?
A trust deed will help consolidate your monthly bills, this can make contributions towards your debt repayment more manageable.
It will also stop any bailiffs, debt collection agencies and creditors from harassing you as you will have a representative who deals with your creditors for you.
It will also make it so you don’t need to sell your assets in order to repay your debts, protecting you from an obligation to sell.
It only takes a period of 4 years (usually) of reduced payments and then you are debt free.
How Can I Apply For A Trust Deed?
To apply for a trust deed simply get in touch with us using our debt form to start proceedings. Or if you are living in Scotland and are looking for free debt advice we can help.
One of our expert advisers will reach out to you and discuss your personal circumstances from there a trust deed proposal can be drawn up and if approved by the courts and the creditors the trust deed can begin
How Long Does A Trust Deed Take To Set Up?
A trust deed typically takes approximately 3-4 weeks to set up, but it can take longer or shorter depending on the complexity of the case and personal circumstances, should you come on board with us and take a protected trust deed, we will endeavor to have it set up in the quickest time frame possible.
What Type Of Debts Can Be Included In A Scottish Trust Deed?
Council tax arrears, tax arrears, store cards, credit cards, loans, general unsecured debt, personal debts, and other mainstream types of personal debt.
How Can A Trust Deed Affect My Credit Score?
It is true to say that this debt solution will affect your credit rating, however it is likely that the impact on your credit rating would have been far worse had you not taken action to address your debts (which in the first place were becoming unmanageable).
In the long run it is more likely the Scottish trust deed will positively impact your credit file, this is because it shows you have taken positive action to remedy your unsecured debt.
How Do I Know If I Qualify For A Trust Deed?
To qualify for a trust deed you must have a minimum debt level of £5,000 and a minimum of two creditors.
You need a minimum disposable income of £80 per month
The Trust deed also needs to be approved by the creditors and the court, it is our job to facilitate that for you.
If you qualify and the trust deed gets approved the plan will then begin and you’ll start to see the benefits of this protected debt solution.
The only way to know for sure if you qualify for the debt relief scheme is to apply for it and see if it gets approved, the insolvency practitioner will assess your debts and current financial situation should you meet the joining criteria, and from there if the insolvency practitioner agrees the trust deed in Scotland, is the best way to help you with your debt.
If your creditors agree to the Scottish trust deed then the process can begin.
How Long Does A Trust Deed Last?
A Trust Deed lasts for 4 years, after which time any remaining debt will be considered written off.
4 years of reduced debt repayments on a consolidated debt removal scheme and then remainder written off for good.
Can I Get A Trust Deed If I’m On Universal Credit?
Being on universal credit certainly doesn’t automatically rule out the possibility of being on a trust deed, but it will be dependent on the amount of disposable income you have each month, this is because monthly payments will be due as part of the deed of trust.
What About If I’m On Other Benefits?
These shouldn’t affect or interact with this, you need a minimum disposable income (£80pm), and a minimum debt level (£5k) with a minimum of 2 creditors, as long as this criteria is met you should be fine to enter into a trust deed plan and become debt free over a period of 3 years, the only way this will be affected by other benefits is if they further affect your monthly income to the point where you cannot afford the monthly repayments.
How Long Does A Trust Deed Last?
The usual term is for three years, this is three years of reduced repayments towards your debts (Scottish Residents Only) residents elsewhere in the UK needing debt help need to look into an IVA (Individual Voluntary Arrangement) as a solution, after the three year term all the remaining debt (assuming the scheme isn’t extended) is written off, and you are considered debt free.
3 Years Reduced payments, upon completion of the 3 years, debt free.
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