Clear your unsecured debts with a Trust Deed
A Trust Deed in Scotland is a form of Government legislation which is backed by Scottish legislation designed to help Scottish resident’s clear unsecured debt. The Trust Deed acts as formal agreement between a debtor and there creditors whereas the debtor agrees to pay one lower, affordable monthly payment over a fixed period (usually three years). Once agreed, creditors cannot add any interest and charges to the debtor’s total debt. The Trust Deed once protected will ring fence the debtor from creditor demands, Harassment, and will freeze all accruing interest on the debts.
A Trustee is appointed to deal with your entire Debt situation over the period that your Trust Deed lasts for, all the Debtor has to do is agree to regular reviews and make the agreed monthly payments into the plan. On completion of the Trust Deed any unpaid remaining Debt is then written off entirely. In Short With a Scottish Trust Deed:
- Write off all the debts you can’t afford
- Get full protection from creditors
- Get your interest frozen
- Be debt free in 36 months
- Your Trustee deals directly with your creditors. You no longer have to.
- Drastically cut your monthly outgoings by making just one payment per month from your disposable (surplus) income.
- With a Protected Trust Deed, your creditors cannot take further action against you, arrest your earnings or continue to charge interest.
- Unless your employers are one of your creditors, there is no need for them to know that you have signed a Trust Deed.
- Trust Deeds normally last three years. When it ends, the remaining debt is effectively written off and you will be able to start afresh.
- Trust Deeds are usually more flexible to the debtor’s circumstances and cost less to administer than sequestration.
Disadvantages
As with most cost saving plans there may be some disadvantages as below:
- Any existing wage arrestments or other diligence may continue to be effective. It is therefore important to fully disclose any actions that may already have been taken against you in order that the appropriate arrangements can be made for these to be released, if possible. At worst, the effects of these procedures need to be taken into account when framing the proposal for the Trust Deed
- If you fail to adhere to the terms of the Trust Deed, your home and other assets may be at risk. Our staff will fully explain the implications of the Trust Deed to you to ensure that the proposal is affordable, achievable and suitable to your personal circumstances
