People residing in Scotland have access to a range of Scottish debt help solutions that can assist them in dealing with their creditors. A Scottish Trust Deed is one of the debt solutions available. We often receive enquiries from people regarding Scottish Trust Deeds and to help you understand how they can help, we have compiled a list of the answers to some of the most frequently asked questions.
What is a Scottish Trust Deed?
Scotland Trust Deeds are formal Scottish debt solutions which are set up between you and your creditors where you agree to pay back as much as you can afford towards your debts over an agreed period (usually 48 months). Providing you adhere to the terms and conditions of the agreement, the balance of the monies owed included in the Trust Deed will be written off at the end of the agreed period.
How does a Trust Deed in Scotland work?
A Scotland Trust Deed must be arranged by a licensed Insolvency Practitioner.
If after reviewing your financial and personal situation and after considering all debt solutions available, if you feel that a Trust Deed is the most appropriate debt solution for you, we will prepare your case and appoint an independent Insolvency Practitioner who will act as your Trustee and handle the process for you.
Your Trustee will present your case to your creditors and providing that there are no significant objections to your proposals from your creditors, your trust deed will become protected. Once protected, your included unsecured creditors will be unable to take legal action to recover the monies owed by you.
How do I qualify?
In order to qualify for a Trust Deed in Scotland, you must be a Scottish resident and have lived in Scotland for a minimum of 6 months. You must be struggling to repay your debt but be able to make a monthly contribution from your earned income.
How will it affect my credit rating?
Trust Deeds Scotland will normally have an adverse effect on your credit rating. Details of your arrangement will be recorded on you credit file which will make it difficult for you to obtain credit until after you have been discharged.
Most lenders will only consider offering you credit after 3 years have passed since your discharge.
Will it affect my employment?
Although most people living in Scotland will be able to enter into a trust deed in Scotland without impacting on their employment, you should check your contract of employment before applying for a trust deed.
Are there any fees involved?
All Insolvency Practitioners will charge for their services. Their fees, which are agreed upfront with your creditors, are deducted from the monthly contributions made by you.
What debts can be included?
Only unsecured (loans, credit cards and overdrafts) can be included. Secured debts, (mortgages and hire purchase) and student loans cannot be included.
How can I find out if a Scottish Trust Deed is the best solution for me?
Careful consideration should always be taken before you decide on the solution to take when dealing with your debts.
Before deciding on a solution, you should have a financial review carried out by an FCA regulated debt advisor. The purpose of the financial review is to identify the best debt solution to suit your personal circumstances.
Debt Advisory Services Scotland provide a free financial review service to help identify the best solution for you to deal with your debts. Our review service is completely free and there is no commitment for you to action any recommendations that we make.
If you are worried about your current level of debt and If you are interested in finding out more about the available debt help in Scotland contact Debt Advisory Services Scotland today on 0141 956 4088 or on 0800 011 2322 and speak to one of our friendly and experienced debt advisors.
Debt Advisory Services Scotland is regulated by The Financial Conduct Authority No 671573 to provide debt advice to people living in Scotland.
Free advice is available from The Money Advice Service who can be contacted on 0800 138 7777.