Write Off Unaffordable Debts With A Scottish Trust Deed... 82% of people who we help become debt free in 36 months

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    A legislated arrangement between you and your creditors.

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Scottish Trust Deeds FAQs

Scottish Trust Deed FAQs tend to focus on numerous topics. These official agreements can help the residents of Scotland deal with their debt problems. Backed by the Scottish government, they involve the transfers of debtors estates to trustees, which ultimately benefits creditors as well as the debtors. Known as a trust deed, this formal contract prevents the need for litigation. Some common questions about these contracts are answered in the following paragraphs;

What are trustees?
What are the benefits of this agreement?
What are the disadvantages of this agreement?
What is qualification based upon?
Can self-employed people enroll in this program?
Are credit checks performed to determine eligibility?
How does the process work?
What commitments must be made when entering these agreements?
How are monthly payments calculated?
How much does it cost to set-up these contracts?
How quickly can these contracts be set-up?

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What are trustees?
Trustees are licensed insolvency practitioners. Many have backgrounds in accounting. These professionals assess creditor claims, debtor assets and expenses, and ultimately disburse funds. They have several responsibilities. Among them are documenting all actions, keeping the debtor informed of all activities, and remaining ethical. They may not delegate responsibilities, profit, or serve in any conflict-of-interest capacity.

What are the benefits of this agreement?
These protected contracts prevent creditors from petitioning the courts for the sequestration (bankruptcy) of debtors. There is no involvement from courts. All communications with creditors are handled by the trustee. Many times, debtors who enter into these contracts can retain their homes and vehicles. In addition, the date the trust deed becomes effective, all debts are frozen. This includes interest charges.

What are the disadvantages of this agreement?
Once entered into, a debtor's credit is officially categorized as a default. This remains in effect for six years, and prevents the debtor from securing credit cards and loans. In addition, any enforcement actions which exist at the time of the agreement, such as bank and earning arrestments, may continue.

What is qualification based upon?
There are three criteria for participation in this program. A debtor must be a resident of Scotland; she or he must have at least 10,000 pounds of unsecured debt; and she or he must be employed (either part-time or full-time).

Can self-employed people enroll in this program?
Yes, as long as the basic three criteria are met. Self-employed candidates must present proof of income. This usually involves submission of the business' trading statements for the prior six-month period.

Are credit checks performed to determine eligibility?
No. Credit checks are not conducted. Debtors with bad credit histories are eligible to participate in this program, as long as they meet the three basic criteria noted above.

How does the process work?
During a 36-month period, the trustee assesses and accrues all the debtor's assets. In extreme cases, this period can be extended to 48 months. Upon completion of this time-frame, the trustee adjudicates all claims from creditors. Then, he or she distributes the accrued funds proportionally to the creditors. When the process is complete, the debtor's remaining debts are written-off, and he or she becomes debt-free.

What commitments must be made when entering these agreements?
The debtor commits to cooperating fully with the trustee. The agreed-upon monthly payments must be submitted on time. No additional credit agreements may be entered into. The trustee must be informed of any changes in financial circumstances, including unexpected income or debts.

How are monthly payments calculated?
The trustee assesses the debtors' income and expenditures. From these figures, she or he determines an affordable amount, which is then proposed to the debtor. When an amount is agreed-upon, it is submitted to the creditors for approval. Creditors usually have a minimum payment threshold. If it is not met, the creditors may reject the proposal.

How much does it cost to set-up these contracts?
Nothing. The only fees involved are the monthly payments which are calculated by the trustee, and agreed-upon by the debtor. Creditors agree to receive less debt repayment in order to facilitate the contract. They forfeit a portion of the monthly payment to cover the Trust Deed company's administrative and management fees.

How quickly can these contracts be set-up?
Generally, it takes two to four weeks to draft, formalize and authorize these agreements. Then, they are distributed to all creditors for review and approval. The creditors usually take about two weeks to review, approve or reject a proposal, and return the documentation. Once this contract is set-up, creditors are legally forbidden to contact the debtors.

This list of Scottish Trust Deed FAQs has covered some of the most common questions related to these contracts. While there are some disadvantages to entering into these legal agreements, most professionals agree that the benefits far outweigh them. These contracts may be drafted in trustee offices, during home-visits, or through online resources.

Write Off Unaffordable Debts

Entering into Scottish Trust Deed will allow you to write off unaffordable unsecured debts leaving you a clean slate and a brighter future to look forward to. There are some debts that cannot be written off. Click here* for more information on the limitations.

Relief From Debt Pressure

Unlike an IVA which can lasts for a minimum of 60 months, the minimum time to complete a Scottish Trust Deed is 48 months (4 years) meaning you will be free from the pressures of debt quicker. Click here for more info on IVA's

Legislated Debt Solution

Trust Deeds are a legislated debt solution, which unlike debt management, means as long as you keep up the arranged repayment plan, you can return to a more stable financial position in life and start to plan for a brighter future.

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