TRUST DEED FAQ's

• What is a Trust Deed?
• Trust Deed Pros and Cons
• Trust Deed FAQs

Trust Deeds FAQ’s

What is a Trust Deed?
What are the advantages of a Trust Deed?
What debts does a Trust Deed cover?
What is the duration of a Trust Deed?
How long does it take to set up a Trust Deed?
What if the some of the creditors don't accept my Trust Deed?
What happens to the interest and charges on my debts?
Will the Trust Deed affect my credit rating?
I have CCJ's. Can I still apply for a Trust Deed?
Is a Trust Deed a loan?
Will I be subject to a credit search?
What happens if the Trust Deed is not approved?
Will I have to release equity in my home?
What happens if I miss payments?
Can the creditors contact me after a start a Trust Deed?
What if my circumstances change?
How do I set up a Trust Deed?

What is a Trust Deed?
A Trust Deed is a formal agreement between a debtor and the debtor’s creditors to help clear your debt. It is legally binding and must be set in place by a licensed Insolvency Practioner (the Trustee).

What are the advantages of a Trust Deed?
Trust Deeds will get you one lower affordable monthly payment, can eliminate hassle from your creditors (only if ‘protected’) and get you completely debt free in approximately three years.

What debts does a Trust Deed cover?
Trust Deeds only incorporate unsecured debts such as your Credit Card debt, Store Card debt or any loans.

What is the duration of a Trust Deed?
Trust Deeds usually last three years but it can vary depending on circumstances.

How long does it take to set up a Trust Deed?
Each case varies but usually no longer than six weeks

What if the some of the creditors don’t accept my Trust Deed?
Any creditors who do not want to accept the Trust Deed must object in writing within five weeks of receiving the notice. Their objection will only be upheld if they represent more than 33% of the total debt. If not, the Trust Deed will commence regardless.

What happens to the interest and charges on my debts?
All the interest and Charges will be frozen once the Trust Deed becomes ‘protected’ until the end of the term. (Usually three years).

Will the Trust Deed affect my credit rating?
Entering into a Trust Deed will affect your credit rating during the fixed term (usually three years). After this you can apply to have you record amended to show ‘all debts satisfied’.

I have CCJ’s. Can I still apply for a Trust Deed?
You can still apply for a Trust Deed even if you have CCJ’s.

Is a Trust Deed a loan?
A Trust Deed is not a loan. It is a legally binding contract between you and you creditors to help you write off any debts you cannot afford.

Will I be subject to a credit search?
No credit searches will take place against you as you are not borrowing any money. Trust Deeds are not loans.

What happens if the Trust Deed is not approved?
In the unlikely event that your Trust Deed is not accepted, an informal arrangement must be put in place to repay your debts. This can be done with a Debt Management Plan.

Will I have to release equity in my home?
The creditors will expect you to release any equity in your home once the period is complete. As they have agreed to write of your debts you must do this to pay back as much of the debt as possible.

What happens if I miss payments?
Once you have entered into a Trust Deed you must not miss payments as your Trustee has the right to freeze your bank account or even apply to the courts to declare you Bankrupt.

Can the creditors contact me after a start a Trust Deed?
No creditors are allowed to contact you by law directly once a Trust Deed has been setup.

What if my circumstances change?
If your circumstances change i.e. you lose your job or receive a pay cut, contact your Trustee immediately. They can re-negotiate with your creditors and set temporary arrangements in place. This can work both ways. If you receive a pay rise or move to a better paid job, again you should inform your Trustee as you may be obliged to pay more into the Trust Deed.

How do I setup a Trust Deed?
The UK Debt Advisor can setup a Trust Deed for you. Call us free on 0800 043 2027 or use our free call back service.