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TRUST DEED

Since England and Scotland are covered by different laws when it comes to debt solutions, the government introduced Trust Deeds to help those who are struggling with over £10,000 of unsecured debt. They provide a great way for Scottish residents to help free themselves from outstanding accounts which may never be successfully cleared without professional intervention. Since everybody’s situation is different, we will be able to establish your suitability for this product following our Free Debt Review with one of our expert consultants.

How Do Trust Deeds Work?
A Trust Deed works in a similar way to an Individual Voluntary Arrangement whereby a legally binding agreement is put into place between you and your creditors. Any spare capital that you have to put towards your outstanding balances are calculated during the debt review phase to ensure that any proposed payments are bespoke to your individual circumstances.

Unlike an IVA, the arrangement is usually in place for four years rather than five, however any remaining amounts owed to creditors beyond this term will be permanently written off.

Aside from the burden that comes with owing large amounts of money, much of the dailystress emanates from the countless company letters and threats from bailiffs which are an all too familiar site for so many people. With a Trust Deed in place, all creditors are required to cease collection communications immediately as well as freezing any interest and charges being applied to the account. Once a Trust Deed is in place, you can truly begin the process of rebuilding your finances without the constant, unhelpful reminders that your debts are still increasing.

Is a Trust Deed Right For Me?
There are many reasons for people ending up with a level of debt that they quite simply can’t afford to repay, but the good news is that there is always a solution. Although Trust Deeds can have a negative impact on your credit score for up to six years, we often find that those with outstanding debts and arrears have already seen their score affected.

Advantages Disadvantages
  • Arrange multiple outstanding debts into one affordable monthly payment
  • Any remaining debt will be written off once the Trust Deed has been completed
  • Reduced payments will usually continue for a period of 4 years
  • An option to avoid Sequestration and therefore protect your assets
  • Mounting interest and charges are frozen as long as monthly payments are met
  • Bailiff and other collection action ceases immediately
  • Creditors are under no obligation to accept a Trust Deed proposal and may still pursue bankruptcy
  • Minimal flexibility in the event that your financial circumstance change during the term
  • Equity is released from your home at the start of a Trust Deed
  • You will be placed on the insolvency register and this will remain on your credit rating for six years
  • Your bank account may be shut down and you could be denied certain accounts
  • Only eligible for those bound by Scottish Law

Trust Deeds aren’t guaranteed to be accepted by creditors if they feel that sequestration would benefit them more although it’s definitely an avenue worth exploring with your consultant before taking those steps.

Due to the complex legal wrangling of getting a Trust Deed in place, this process must be completed by a licensed insolvency practitioner operating in Scotland. While this can attract some additional fees to cover the cost of the service, it does allow you to sit back and have the vast majority of the work completed on your behalf.

Rather than trying to muddle through the various options that are available, many of which may be unsuitable for your location and circumstances, why not give one of our friendly debt consultants a call? With plenty of experience in debt solutions for Scottish clients, we’re confident that we will be able to find the perfect outcome for your needs on completion of our free, no-obligation, debt review.

 

IN JUST 24 HOURS WE CAN BE DEALING WITH ALL YOUR DEBTS

Personal Loans
Credit Cards
Overdrafts
Payday Loans
Store cards
Catalogues
Doorstop loans
HM Revenue
Custom Debts
Council Tax Arrears
Utility Bills
   


When people are struggling with debt it's more important then ever that they have access to effective advice. We work with partners to make debt advice easier and quicker to access, and to improve standards and quality across the sector.

Visit the Money Advice Service website for further info >>

OUR SERVICES
Free No Obligation Debt Reviews
Debt Management Plans
Individual Voluntary Arrangements
Trust Deeds/Sequestration
Bankruptcy Service
Debt Solutions for Scottish Clients
Repossesion/Eviction Advice
Self-Help Budgeting Advice

 



USEFUL LINKS
www.bis.gov.uk/insolvency/Publications
www.moneyadviceservice.org.uk
www.citizensadvice.org.uk
CONTACT US
Email: feedback@debtfreeadvice.co.uk
Call Us: 0800 781 7615
 

IMPORTANT INFORMATION: Debt solutions subject to conditions and acceptance. Your ability to obtain credit will be affected in the short term and may also be affected in the medium to long term. Paying a lower amount each month may increase the time taken to repay the debt. The total amount our client's repay towards their debts may increase on certain debt solutions. If you enter into an individual voluntary arrangement (IVA), a debt relief order (DRO), a protected trust deed or becoming bankrupt the details will be recorded in the Insolvency Register.

* The free debt review consists of a detailed telephone interview with one of our Personal Finance Advisors who are experts in giving debt and money advice, and are regulated by the Financial Conduct Authority (FCA). This is completely free of charge, with no obligation, and you will be given a detailed breakdown of what your options are. If you chose to take one of the solutions offered to you by one of our chosen partners, there may be fees included. However you will be made aware of those before you contract in to any agreement, and you will be given plenty of time to think about what you want to do before making a decision. At no stage are you under any obligation and you are always protected by your consumer rights.
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