Whether you’re particularly knowledgeable about trust deeds or you’ve never heard of the process before, it’s crucial to recognise exactly what you’d be entering into. They are a useful debt solution in Scotland and that is largely down to the number of advantages they offer.
If you’re suffering from spiralling debt problems and it feels like there is no light at the end of the tunnel, speak with Scotland Debt Solutions and we can analyse your circumstances and put you on the path to a debt-free future.
In the meantime, here are some trust deed advantages for you to mull over:
• It is unlikely that you would be required to sell your house in order to create proceeds for creditors, however if you are unable to release the equity from your share of assets then this may be the final option.
• You have one fixed monthly/weekly payment to make which is calculated using a standard common financial tool approach taking into account essential living costs.
• If you have a change in circumstance then your Trustee shall review and take all factors into account before deciding whether to reduce or increase your contribution if appropriate.
• If a creditor does try and harass you then you are able to pass their details to your Trustee who will contact the immediately advising they have to liaise directly with the Trustee and no longer contact you directly.
• Creditors are also no longer able to take court action against you or petition for your bankruptcy for debts incorporated in the trust deed if your Trust Deed reaches protected status.
• After the period of your trust deed, normally four years you will be debt free ( subject to having certain debts such as student loans, criminal fines which are not discharge via a trust deed).
• If enough of your creditors agree to the trust deed repayments, your agreement will become ‘protected’ which means that any interest and charges will be frozen to prevent your debts increasing any further.
• Creditors generally will be inclined to agree to a trust deed as they normally secure a better return than if you went into sequestration (bankruptcy).
• If you have your own business, you may be able to continue trading.
• You can continue to act as a Director of a Limited Company as long as the articles of association do not restrict this are amended to reflect the fact you are subject to a trust deed.
• Less likely to affect your job. However, you should always check your contract of employment.
• Once a Trust Deed becomes protected can prevent and uplift earnings arrestments.