Every year over 6,000 Scottish residents use Trust Deeds to become debt free in as little as 48 months.Check if you Qualify
Trust deeds are a formal insolvency procedure, available only in Scotland. A Trust Deed is a legally binding agreement between an individual and a licensed insolvency practitioner (the IP, who acts as the Trustee) and is for the benefit of all unsecured creditors. Trust Deeds offer a viable alternative to other forms of debt relief such as the Debt Arrangement Scheme (DAS) or Sequestration (Scottish term for bankruptcy).
Trust Deeds work by transferring your assets to the Trustee and by you making a single, affordable monthly payment from your income for a minimum period of 48 months. The unsecured creditors receive payment from the funds received into the Trust Deed and will write off their remaining debt at the end of the Trust Deed period. Please continue to read this section to find out if a Trust Deed could be the right solution for you.
When you enter into a Trust Deed. your creditors will stop contacting you and once the Trust Deed is completed, the remaining balance of your unsecured debts will be legally written off. Your creditors will not pursue you for the written off amounts, meaning you can look forward to a debt-free future.
Council Tax Arreas
Total Owed £18,800
* Subject to creditor acceptance. Payment subject to individual circumstances. Credit rating may be affected
The qualifying criteria to enter into a Trust Deed is as follows:
If you qualify and decide that a Trust Deed is the right solution for you, then you will sign all the relevant paperwork and your Trustee will attempt to have the Trust Deed protected.
By obtaining protected status, this means that your creditors cannot take legal action against you for recovery of their debts.
To achieve protected status, the Trustee must not receive objections from a majority in number of creditors or from any creditor(s) owed more than one third in value of the total debt.
Once protected, the Trustee’s main duty is to collect your income contributions, realise your assets and make the agreed payment to your creditors. Your agreed contribution is subject to review at least annually, or at any time if you experience a change in circumstances.
At the end of the agreed payment period (normally 48 months), your Trustee will make the final payment to your creditors and process your discharge. Once discharged, your remaining debts are legally written off and your Trust Deed is complete!
Contact an expert debt adviser at Harper McDermott to find out more about the debt solutions available to you. We are here to help you decide the best course of action to suit your individual needs and support you every step of the way. If you would like a fresh start, get in touch today!