What are Scottish Trust Deeds?
If you need help with debts or advice on a Scottish Trust Deed feel free to fill in our form below and our experienced financial advisors will be in touch with you immediately to discuss how we can help you. Alternatively call us now on 0800 850 1207 and we will be happy to deal with your request.
What are Scottish Trust Deeds?
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). It is a good alternative to Bankruptcy and an effective form of debt help. There are a lot of legalities involved with Bankruptcy whereas with a Trust Deed there in no court involvement at all.
How does it work?
The Trustee can be put in place by a professional Debt Advisor who would firstly go through your income, expenditure and debt details. From this, they would then calculate how much you can afford to repay. This would then be put into a proposal and presented to the creditors for approval.
Once the proposal has been accepted, you creditors are not allowed to directly contact you and all interest and charges are frozen. This is different to a Debt Management Plan which are informal agreements and means creditors can increase their demands on debtors at any time. A Trust Deed gets you one lower affordable monthly repayment for a set period (Usually 36 months), after this period any remaining debt is written off and you walk away debt free.
What is the criteria for a Scottish Trust Deed?
- You must be a resident of Scotland
- You could also qualify if Scotland has been your main country of residence at any previous time.
- The minimum amount of debt required for a Trust Deed is £10,000. Each one is based on your own unique circumstances and treated individually.
- You must be able to afford at least £150 towards your debts each month.
- Only unsecured debts can be included in a Trust Deed, i.e. Credit Card debt, Loans, Store Card debts etc.
The legal requirements
Trust Deeds are legally bound arrangements and are regulated by the Bankruptcy (Scotland) Act 1985. They are only available to people who are residents of Scotland or people who have lived in Scotland for a minimum of six months. You may also qualify if you have been a resident of Scotland anytime in the past. Scottish Trust Deeds need to be setup by a licensed Insolvency Practitioner or IP who will act as a Trustee and communicate with the creditors on your behalf.
Other things you should know about Trust Deeds
- You may be required to release any equity in your property
- All assets and liabilities have to be declared
- A Trust Deed will temporarily affect your credit rating
- Your Trust Deed will be reviewed regularly, usually every six months
See if you qualify
See if you qualify for a Trust Deed by answering a few simple questions. Click the link here: Do I qualify for a Trust Deed?
If you would like more information on Scottish Trust Deeds or would like to apply for one give UK Debt Advisor a call on 0800 043 2027 or apply below;