How Do I Apply For A Trust Deed? – Advice
How Do I Apply For A Trust Deed?
With A Trust Deed You Could Write Off Your Unaffordable Debt
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How To Apply For a Trust Deed - Advice
Trying to register for a debt solution like a Trust Deed, is a significant event in your life, so it is important to gather as much information as possible, so you can make an informed decision.
Read our article below to find out about the various steps of the Trust Deed application; what we will need from you and what you can expect from us should you decide to go ahead.
Trust Deeds are solely available for residents of Scotland. If you are a resident of England, Wales or Nothern Ireland, then visit our sister site IVA4M3.co.uk to find out how to apply for an IVA.
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Do I Qualify For a Trust Deed?
First thing’s first, in order to qualify for a Trust Deed, you must meet the following criteria:
Be a resident of Scotland, now or in the last 12 months
Have unsecured debts of at least £5,000
Have sufficient income to pay a monthly contribution. The Trust Deed should allow for at least 10% of your debt to be repaid
Be unable to pay your debts since the value of your credit is greater than that of your assets
Speaking To A Member of Our Team
To begin applying for a Trust Deed, fill in our form, providing basic details about you and your debt.
Once you submit your details, a member of our team will contact you.
During this phone call, a member of our experienced team will discuss your personal circumstances with you to gauge whether you qualify for a Trust Deed and whether you are happy to proceed.
At this stage you will be asked to provide documentation showing your circumstances (you can see the list of required documents below).
What Information Will We Need For A Trust Deed?
During the application process, there are several documents that we will request.
We will ask you to provide:
- Photo ID
- Rent Agreement or Mortgage Statement
- Latest 3 Months of wage slips
- Latest 3 months of bank statements
- Council Tax and Utility bills
- HP agreement if appropriate
- Recent statements from any other creditors you may have.
Which information you are asked for during your application will largely depend on your personal circumstances and as such, the above list is to be used purely as a guide.
There will also be a discussion regarding your other living expenses, such as food bills and travel expenses. This allows your Drafter to determine your affordability, ensuring you don’t commit to a Trust Deed Application that isn’t appropriate for you.
What Happens Next?
Once we have received your documentation, one of our drafters will carry out a pre-assessment of your application to authenticate your case. Once this is completed, they will contact you to carry out a Statement of Insolvency Practice where you will be able to go into more detail regarding your application. This will include an Income and Expenditure assessment where your incomings and outgoings are assessed in order to decide how much you can afford towards your monthly contribution.
At this stage, once we have carefully assessed your situation, a final decision will be made regarding the best way to proceed. It may be that our team consider you a better candidate for an alternative debt solution such as:
Drafting My Trust Deed Application
If a Trust Deed is considered to be the best solution for you, then your Trust Deed Proposal will be drafted and sent to you to sign.
Once you send this back, it will then be sent to your creditors for them to check. At this point, your creditors will decide whether they have any objections to your application. If your creditors do nothing, then it will be treated as an agreement to the terms of the proposal. They must respond if they wish to object.
They have 5 weeks to to so.
There are two potential situations that could decide whether your application is succesful or not:
- No more than half of your creditors object to the proposal.
- Creditors who make up over one third of your total debt object.
At this stage, the AiB (Accountants in Bankruptcy) will also be notified of your application.
Applying For A Protected Trust Deed
Once the 5 week period has elapsed and enough creditors are in agreement, your drafter can apply to have your Trust Deed protected.
This process binds the creditors to the agreement, meaning they are unable to further pursue the debt, whether that’s through their own Credit Control Departments or via the courts and Sheriff Offices.
The debt is then Frozen meaning no further charges or interest can be added to the balance.
Trust Deed Guides and Information
Setting up a Trust Deed does incur some costs; however, you will not be expected to pay anything up front at the beginning of the arrangement and there will be no surprise costs at the end of the arrangement.
A Trust Deed is a debt solution where you agree with your creditors to pay all or part of your debts. This agreement is set up and managed by a Trustee, who will receive an agreed monthly payment from you and will divide it amongst your creditors.
Many kinds of debts can be included in a Trust Deed. They are limited to unsecured debts but by solving your unsecured debt problems, you may find paying any secured debt much easier.