Originally launched in July 2009, Trust Deed Scotland is a Scottish debt solution. Its aim is to help people in Scotland with serious financial problems. Generally, you are eligible for a Trust Deed if you have more than PS5,000 in unsecured debt. If your creditors approve, you can make regular payments and write off most of your debts. You can also avoid bankruptcy with a Trust Deed.
The Protected Trust Deed is one of the most popular types of Trust Deed Scotland offers. This form of debt relief allows you to continue making regular payments over a four-year period. In addition, it stops your creditors from trying to contact you. This gives you more control over your assets and keeps your credit rating clean for up to six years.
Before you begin the process, you must make sure that you can afford the monthly payments. The payments are based on your disposable income, which is the amount of money you have left over after you have taken into account essential living expenses. Some of the costs that you can include in your disposable income are food, clothing, haircuts, hobbies, childcare, and more.
The Insolvency Practitioner will look at your income and expenditure and explore whether you can meet the repayment proposal. He or she will then draft a repayment proposal, which will be shared with your creditors. This will determine the monthly payments you are required to make. A typical Trust Deed Scotland proposal is for a 4 year period. However, you can have a shorter period. Depending on your situation, you may be able to negotiate a shorter term.
If you are considering a Trust Deed, you should first check with a debt expert. They will be able to explain the process and offer you advice tailored to your specific needs. You may also be referred to a Money Advisor through the Citizens Advice Bureau or the MoneyHelper website.
You can apply for a Trust Deed through an Insolvency Practitioner in Scotland. You can choose to have a Protected or Non-Protected Trust Deed. A Protected Trust Deed will stop creditors from contacting you, while a non-protected one will allow them to contact you. You must pay an Insolvency Practitioner to administer your debt relief.
You must also have a non-benefit income that will cover the total amount of your debt. The remaining amount of your disposable income will be used to pay your creditors.
In some cases, creditors may object to your Trust Deed. They must notify the Trustee of their objection within five weeks of the date of publication in The Edinburgh Gazette. If they do not, you can still start the repayment plan. Once you have started payments, you will receive a discharge certificate.
You can also apply for a Sequestration. This type of debt relief will only be available in Scotland. You can also file for Individual Voluntary Arrangements, which is similar to a Trust Deed.
Trust Deed Scotland – What You Need to Know was first seen on Apply for an IVA