How to clear your council tax arrears with a trust deed

If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances.

As council tax arrears are regarded as a priority debt, it’s crucial to take action quickly if you feel the situation is becoming unmanageable. Councils have the power to recover payment arrears via earnings or bank arrestment, and can even apply for your sequestration should the level of debt become too high.

So what is a Scottish trust deed, and how can it help you?

What is a Scottish trust deed?

A Scottish trust deed is a formal debt procedure that helps people escape from unmanageable debt. Council tax arrears can be included in the trust deed, along with other types of unsecured debt.

An approved money adviser or licensed insolvency practitioner (IP) will assess your financial situation to make sure there are no better options, and then put together a proposal for creditors.

Considering a trust deed for your council tax arrears

If the council has been unable to collect their debt for some time, they may decide to pass it on to a debt collection agency. Before the situation escalates to this degree, it would be worthwhile seeking independent advice on your overall financial situation, and find out more about whether the Scottish trust deed might be suitable for you.

The term of a trust deed is generally four years, with one of the major requirements being surplus income with which to pay your creditors. For more information about clearing your council tax arrears with a trust deed, call one of the team at Scotland Debt Solutions for a free consultation. We’ll advise on whether a trust deed is suitable, and make sure you understand all your options.