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Provide the required information in the form above and allow us to determine the best option for your personal circumstances
Finding a better solution
We will aim to determine a solution which is more affordable, will reduce your monthly payments and even write off unaffordable debt
Dealing with your creditors
You can then contribute an amount you can afford each month and we will distribute the payments between your creditors
What is a Scottish Trust Deed?
A Scottish Trust Deed offers protection to all the debtors from their creditors and prevents them from taking any legal action. A fixed tenure is decided while the agreement is made and the debtors have to pay for a fixed period of time towards the debts that are unsecured. The fixed tenure in Scottish Trust Deed is usually four years. If the debtor agrees to all the terms of the Scottish Trust Deed, then the remaining debt amount is forgiven. All the payments are administered by a Trustee. It is the sole task of the trustee to divide all the payments made between the creditors. This offers convenience to the debtors and lets them make a single, regular and affordable payment towards their debts.
The Scottish Trust Deed offers the debtors a fresh start. This, however impacts the credit ratings in the long run. The Trust Deed agreements require one to adhere to the agreement made between the Trustee and the debtor. This deed is also a form of insolvency. All your assets such as your car and your house will have to be signed over to your Trustee.
A qualified Insolvency Practitioner is the Trustee in a Scottish Trust Deed agreement. The fees are deducted from the money paid to the creditors by the Trustee. The fees charged would cover-
- Administrating and drafting charges for the proposal
- Creditors correspondence charges
- Charges pertaining to monthly contributions to the creditors
- Periodic reporting charges
- Dealing with all the concerns and issues during the entire tenure of the Trust Deed agreement.
Applying for a Trust Deed
A Money Adviser needs to be contacted to determine whether a Trust Deed would be suitable for you. A detailed assessment is then done about the circumstances and the debt solutions are suggested by the adviser.
All your unsecured debts can be easily tackled and managed with the aid of a Trust Deed. This can be done in the form of affordable, monthly payments. This repayment plan is for people residing in Scotland and those who are struggling to clear their debts.
A person can qualify for a Trust Deed if–
- One is a Scottish resident
- One is struggling to keep up with the current payments
- Has some source of income
- Has at least unsecured debt of £5000
- Can repay a minimum of £100 per month
Can a Trust Deed prevent legal action?
Once the creditors accept the terms and conditions pertaining to the Trust Deed, then they wouldn't be able to take any kind of legal action on the debtors. After accepting the terms, the agreement protects the debtor and no legal action can be initiated by the creditors to recover the outstanding amount from the borrower.
Can a Trust Deed affect credit rating?
Yes! A Trust Deed can affect your credit rating. The credit reference agencies update their records once you decided to enter into a Trust Deed. These details remain in the records for a period of 6 years. However, the credit rating can be rebuilt once the Trust Deed has terminated.
Should the employer be informed of the Trust Deed agreement?
There isn't any need to inform an employer if you decide to enter into a Trust Deed. The employer can however look into insolvency registers. This is pretty much unlikely to happen. Once declared an insolvent, future employment may prove to be quite difficult. It also depends on the industry one is looking to enter.
Can an early exit be made from the Trust Deed?
Once a borrower has agreed to all the terms governing the Scottish Trust Deed, then it is necessary for the borrower to complete all the payments till the term completion. It is possible to conclude the Trust Deed if any third party comes forward to repay any of the balancing amount. The Trustee ultimately has the power to decide whether this can be worked out or not.
Benefits of a Trust Deed in Scotland
- A single monthly payment is made towards all the debts.
- The charges and interest rates are frozen. The borrower would be required to repay charges and interest too if a windfall is received by the borrower in the form of a lottery during the Trust Deed tenure.
- No liaisons have to be made with the creditors as the insolvency company will manage this on the behalf of the creditors.
- Once both the borrower and the creditors agree to the Trust Deed agreements, the borrower would become debt-free at the end of the contract period.
Speak to the representatives at Trust Deed Calculator to know how we can help you get started with a Trust Deed.