Scottish Trust Deeds
- Do you live in Scotland ?
- Have you lived in Scotland for the last 6 months ?
- Are you struggling to pay unsecured Debts?
Scottish trust deeds is a debt solution which helps borrowers who are seriously struggling to pay their debts.
The individual in debt agrees to pay what they can afford from their earnings and in return lenders freeze interest and charges and then wipe out any remaining debt at the end of the agreement.
A deed is created based on two factors:
- What the individual can afford to pay back (over a few years)
- The total owed to creditors.
The usual length of time for a Scottish Trust Deed is three years, but Trust Deed Agents can increase this to four years where necessary.
The main benefit to the individual in debt, is that the creditors will no longer be able to contact them and are legally obliged not to harass their client.
A Scottish trust deed however, is a legal undertaking. And this is why you should speak to a qualified, licensed and experienced Company.
The borrower hands over their rights over their assets, like their home and car, to the insolvency practitioner in charge of running the trust.
The good news however is that the borrower can usually write off up to 90% of their debt.
Even people that do not have much additional money available can pay off their debt without paying any interest that has accumulated.
Additionally, people who sign up for a Scottish Trust Deed need not worry about passing a mandatory credit check.
They do not even have to worry about any setup fees.
A trust deed is unprotected or protected – an ordinary, unprotected deed is not binding on creditors unless they agree to the terms, while a protected deed gives both sides of the agreement extra safeguards.
In order for the trust deed to become protected the total number of creditors who object must not be more than half of all creditors in number and a third or more in value.
Creditors who do not respond to the insolvency practitioner within five weeks are deemed to have agreed to protect the deed.
Under the deed, the borrower’s responsibilities are –
• Paying in a regular, affordable monthly payment for the agreed term of the deed, which is typically 36 months. The amount depends on how much disposable income is left after deducting priority livings costs, like mortgage or rent payments, utilities, food and other bills.
• Paying a lump sum from any assets – sometimes the borrower’s other assets, like a home, car or cash in the bank are included in the deed
The agreed repayment is all a borrower pays unless they receive an unexpected lump sum, when some or all of the lump sum will need to be paid into the trust.
In return, creditors agree –
- To stop adding interest or charges to debts
- To put a hold on any legal action
- To write off any remaining balance on debts at the end of the deed
What we will do
Before entering in to an agreement, it’s essential to take advice about Scottish Trust Deeds from a qualified professional who can talk through the options. If we think you may benefit from a Trust Deed we will organise for our associate company who has an office in Glasgow to discuss the option in much greater detail, they have a qualified and experienced team on hand right now to answer your questions and put allay any concerns you may have.
Once an individual enters an arrangement through us, the legal work usually takes up to four weeks to complete.
When the deed is underway, we ensure that the lenders do not contact the borrowers directly. We remain the point of contact by law for both sides whilst running the deed.
Providing a borrower sticks to the repayment terms of a protected trust deed, credit providers cannot take action to bankrupt them, but borrowers are also barred from applying for bankruptcy or arranging a debt repayment programme.
A Scottish trust deed is a serious insolvency solution that affects a borrower’s credit rating.