How can a Trust Deed help me?
If you are a resident of Scotland and are unable to keep up repayments on your debts then a Trust Deed may be able to help you. As long as you are in full time employment and have some disposable income left after you have paid your essential outgoings then you can apply for a Trust Deed. To help you assess your options you should speak to a qualified and experienced debt advisor or an Insolvency Practitioner (IP / Trustee).
A Trust Deed can help you by setting up a legal arrangement with your creditors so that you only pay one lump sum each month at a set amount that you can afford. The amount you can afford to repay is calculated by subtracting you essential outgoings from your monthly income. The disposable income you have left is then used to pay towards your debts. This means you only pay what you can afford each month.
If the arrangement is agreed by two thirds of your creditors the Trust Deed will also become 'Protected'. In this case no further interest can be added to your debts and it stops your creditors from pursuing other legal action against you.
One of the biggest benefits is that once you have completed the full term of the arrangement (usually 3 years), the remainder of your debt will be written off and your creditors will agree it was 'settled in full'. This can be as much as 75% of your total debts, depending on your individual circumstances.
While you are under a Trust Deed all correspondence from your creditors should be passed on to your Trustee to deal with. This means that you do not have to worry about communicating with your creditors yourself that can relieve a lot of pressure.
A Trust Deed is also flexible and assessed on an individual basis that will ensure that you will be in the best possible financial situation during the arrangement. It also costs less to administrate than sequestration (form of bankruptcy).
Please feel free to complete an enquiry form to enable an advisor to call you at your convenience.