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Trust Deed Services Scotland

A protected trust deed is available for borrowers in Scotland. It is not available for borrowers in Northern Ireland, Wales or England.

A protected trust deed is essentially a legally binding agreement. A borrower makes reduced payments for a period of four years. Following this period, the unsecured debts are written off. Repayment to borrowers for a period of four years is arranged with the aid of an Insolvency Practitioner.

A trust deed is a kind of insolvency. The unsecured debts should exceed the value of assets for a borrower to be eligible for a trust deed. The assets may be houses or vehicles.

The unsecured debts may include store card, personal loans and credit card debt.

Frequently Asked Question

What happens if stop paying a trust deed?
Your trustee terminates your trust deeds and at the same lost faith in your promise to pay, there are then you are less protected from your creditors.
How long does your trust deed stays on your credit file?
It stays for six years; it remains on your credit file for six years.
Does a trust deed affect my employment?
You don’t have to let your employer know about your trust deeds, it is not as detrimental as bankruptcy or debt relief order except he is one of your creditors.
How many trust deeds can you have?
As long as you are relived of your former trust deed, you can apply for another one, there are no limits to the number of trust deeds you can have.

A Few Of TheTop Points To Consider Include:

There can be some typical outcomes related to a trust deed arrangement. If one enters into a trust deed and then rents his property, his landlord may terminate his tenancy agreement.

A homeowner entering into a trust deed agreement may have to release equity from his property.

Similarly, it is very important to communicate with the trustee in case the financial situation changes. Events such as inheriting money or losing employment must be reported to the trustee.

It is then only the debts that are included in the trust deed will be written off following a period of four years.

Another important consequence of a trust deed arrangement is that the borrower may be required to live within a budget for four years. While this affects employment, it also renders effects over any hire purchase agreements that a borrower may have.

The borrower’s details are also added to a public register which is known as register of insolvencies. This would be for five years.

Certain Benefits That Trust Deeds Come With:

Once the trust deed is approved, creditors wouldn’t bother you for repayments. They wouldn’t add more charges or interests to your debts. They can’t take any legal action either.

While a borrower may be required to sell some assets, he is permitted to keep one vehicle which is worth £3,000.

Even while a protected trust deed is a formal solution, a borrower need not appear in court.

 

A Few Risk Factors Are Associated With Trust Deeds As Well:

Charges for the services of Insolvency Practitioner are derived from the borrower’s monthly payment towards the trust deed. A borrower should be aware of the percentage of charges that this would be.

A trust deed may even render its effects over the borrower’s terms of employment. It is best to consult with the HR department regarding what these would be.

If a trust deed fails, there would be a risk of bankruptcy.

Trust deeds also lay an influence over credit ratings. They are affected for six years, starting from the date wherein the arrangement was agreed upon.

There are certain very important factors to consider with protected trust deeds. Before going ahead with the decision of entering into a protected trust deed, one must seek expert financial advice. They would be in the best position to offer unbiased advice over the situation.

Trust deeds

Debt Management Plan

1. In Trust deeds, debts are wiped off1. DMP are not wiped off
2. Creditors are only allowed to call their trustees, not the borrowers2. Creditors can take legal actions
3. Only for residence in Wales3. For residents of England and Wales
4. More control of your assets4. Home are less protected
5. Interests are frozen5. Interest and charges are not guaranteed to be frozen

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