Is A Trust Deed Right For You?
Is A Trust Deed Right For You?
With A Trust Deed You Could Write Off Your Unaffordable Debt
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Is A Trust Deed Right For You?
Whether a Trust Deed is suitable for you or not will largely depend on your personal situation e.g. debt level, number of creditors, affordability etc.
A Trust Deed is a piece of legislation that enables you to agree an affordable monthly payment to your creditors for a period of approximately 4 years. At the end of your Trust Deed term, any remaining debt will be written off.
This is becoming an increasingly popular way of becoming debt free. So if you owe money to more than one creditor and have a minimum of around £5,000 worth of debt that you are struggling to pay, then a Trust Deed could be appropriate for you.
Continue reading to get the help and guidance you need.
Do I Qualify for a Trust Deed?
In order to qualify for a Protected 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
Trust Deeds are solely available to residents of Scotland. If you are a resident of England, Wales or Northern Ireland, visit our sister site IVA4Me.co.uk to find out whether an IVA is right for you.
Could A Trust Deed Affect My Job?
Another thing to consider when deciding how appropriate a Trust Deed is for your circumstances, is what your employment situation is.
If you have a job in the financial sector, legal profession, or where you are responsible for budgets etc. then having a Trust Deed may affect your employment and could result in disciplinary action. If you have any doubts concerning your job, then we advise you to contact your HR department and discuss this with them before you apply for your Trust Deed.
Can Creditors Take My Possessions Whilst Arranging a Trust Deed?
When you and your Insolvency Practitioner are arranging your Trust Deed, your IP may ask you to sell any items or assets you own as a condition of your Trust Deed, but you can choose whether or not to consent to this.
The following items would be deemed essential and will never be included:
Items related to children e.g. pushchairs etc.
Electrical equipment e.g. TVs, computers etc.
Furniture
Kitchen equipment e.g. white goods
Medical equipment e.g. wheelchairs
Books
Clothing
Which Assets Should I Declare to my Trustee?
The following assets can affect your Protected Trust Deed and should be declared to your IP:
ISAs
Endowments
Shares
Investments
Insurance policies
Property
Any other possessions of significant value
Trust Deed Guides and Information
What Is A Trust Deed?
Only available to residents of Scotland, a Trust Deed is a legally binding, formal debt solution. It is designed for people who are struggling with debts of £5,000 or over.
Is A Trust Deed Right For You?
Whether a Trust Deed is right for you or not will largely depend on your personal situation e.g. debt level, number of creditors, affordability etc.
Does A Trust Deed Have Fees?
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.
How Does A Trust Deed Work?
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.
How Do I Apply For A Trust Deed?
Signing up to a debt solution 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.
Trust Deed Pros and Cons
Like things in life, Trust Deeds carry with with them benefits and things to consider. Take a look at our article to find out whether a Trust Deed is right for you.
Trust Deeds – Which Debts Can Be Included?
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.
