How a Scottish Trust Deed can help get your finances back on track

Using a Scotland Trust Deed to get our finances back on track is not a new idea. Many people are now taking advantage of being able to significantly reduce their monthly payments to creditors and have up to 85% of their debts being written as part of their agreement.

Could a Trust Deed in Scotland get your finances back on track?

If you are currently struggling to make creditor repayments and have unsecured debts of more than £5000, a Scottish trust deed could be the ideal solution for you,

What is a Trust Deed?

To help people who were struggling with debt, The Scottish Government introduced Trust Deeds in the 1980s.

This type of debt solution is only available to people who are residing in Scotland and who have lived here for at least six months before making an application.

Although Trust Deeds in Scotland are voluntary agreements, they are legally binding agreements between individuals and their creditors where the you agree to pay a regular amount of money towards your debts each month for an agreed period, usually 4 years, at the end of which, the full balance of the unsecured debts included in the plan will be written off, leaving them debt-free.

Your monthly contribution is based on what you can afford.

Trust Deeds in Scotland are arranged and administered by a Licensed Insolvency Practitioner who will, whilst administrating your plan, deal with your creditors on your behalf, allowing you to get on without having to worry about your debts.

Provided you comply with the terms of your protected trust deed, your creditors can’t take further action to recover the money you owe or make you bankrupt

The benefits of trust deeds include:

  • Payments are based on your affordability.
  • Trust Deeds in Scotland are regarded as private arrangements between you and your Creditors, no one else needs to know about it.
  • Once a trust deed in Scotland is approved, creditors are unable to add interest or charges to your debts or take action to recover the monies owed to them.
  • All future dealings with your creditors will be handled by your trustee.
  • There are no ‘upfront’ or additional fees for arranging trust deeds in Scotland.

Disadvantages include:

  • Your credit rating will be affected by entering a Trust Deed.
  • If you are a homeowner, you may be required to release any equity in your property There are, however, various ways this can be done without the need to sell your home.
  • Applications for trust deeds in Scotland can fail to become protected if the majority of creditors object to it, however, If this was to happen other debt solutions are available.
  • Depending on your occupation, signing a Scottish Trust Deed could affect your employment. You should check your contract of employment before committing.
  • Failing to maintain your monthly payments could result in you being made bankrupt.
  • Only certain unsecured debts can be included in Scottish trust deeds, secured loans and hire purchase agreements cannot be included.

Is a Scottish trust deed right for you?

Almost everyone at some time or other, through no fault of their own, may find themselves struggling financially.

Debt Advisory Services Scotland provides a free financial review service to help find the best solution to suit your circumstances.

Our advisors are available on the phone Monday-Friday from 8 am to 8 pm.

If you a looking for financial advice that you can trust, call us on 0141 956 4088 or on 0800 011 2322 (Free from landlines) and speak to one of our advisors today.

 

Menu
Call Now