Trust Deed FAQ's
What is a Trust Deed?
What is the process?
Is a Trust Deed legal?
Who can qualify for a Trust Deed?
How long does a Trust Deed last?
How long does it take to set up?
How much will my repayments be?
How do I know I'm getting the best advice?
What happens after I complete my Trust Deed?
Will I have to sell my house?
Does it make a difference if I am a homeowner?
Will my career by affected?
How do I know my debts are being paid?
Is a Trust Deed a government approved debt solution?
How much does it cost to setup?
What if I am self employed?
What will happen to my credit rating?
Will I have to deal with my creditors again?
Is a Trust Deed a loan?
What happens if the Trust Deed is not approved?
Are interest and charges frozen?
Will you run a credit check on me before I apply?
What if I have CCJ’s against me?
What debts can be included in a Trust Deed?
Does a Trust Deed cover student loans?
Do creditors have to accept a Trust Deed?
What if one creditor rejects it?
Can my creditors come back to me in the future with recovery action?
What happens when I apply online?
What if have a change circumstances, i.e. I lose my job?
What does it mean when a Trust Deed becomes "protected"?
How do I apply for a Trust Deed?
A Trust Deed is a formal arrangement between you and your creditors to repay what you can afford towards your debts on a monthly basis. It could be classed a form of debt consolidation but with the need for a loan.
You make one reduced monthly payment each month for a period of 48 months and then any remaining unsecured debt left over is legally written off.
A Trust Deed is a legislated debt solution put in place to help people who have severe financial difficulties and can no longer afford the monthly repayments on their debts.
Anybody who has been resident in Scotland for the last 6 months or more can qualify for a Trust Deed. You must have at least £10,000 of debt to 2 or more creditors, in full or part time employment and be able to afford at least £150 towards your debts each month.
The duration for a Trust Deed is 48 months. Sometimes is can be less if you are awarded an early discharge.
Usually 6 weeks to draft by the Insolvency Practioner. They are then submitted to your creditors for approval which usually takes around 2 weeks depending on the creditors. The total average is 6-8weeks.
That depends on your own personal circumstances as each Trust Deed case is individually tailored to your situation. A brief chat with our Insolvency Practioner should be able to give you a ball park repayment figure.
We are licensed and registered with the Office of Fair Trading. Our license number is; 629140, so you can rest assured you are in safe hands.
Once the 48 month period has expired and as long as you have abided by the agreement you will be legally free from debt. A certificate of completion will be sent out to you which you must keep safe as you may be required to show this if you apply for further credit.
No, unlike bankruptcy, you will not be required to sell your house although you may be required to release equity in your property but this is dependant on your equity levels.
No. It makes no difference whether you are a tenant or homeowner or if you are still living with your parents.
f you work in specific sectors, i.e. the Financial Services sector or the Police Force your employer has the right to know if you have ever taken out a Trust Deed so it all depends on your employer.
We will issue you a quarterly statement detailing your repayments.
A Trust Deed is a legislated debt solution.
Nothing. All administration costs are charged to the creditors so it will not cost you a penny.
This is not a problem as long as you can prove your income. The usual requirement is 6 months worth of trading accounts from your business.
You credit rating will be affected whilst on the Trust Deed programme and you will not be able to obtain further credit. Once the 48 month period has expired you are free to apply for credit again, although the trust Deed will remain on your credit file for up to 6 years.
No. Your creditors are not legally allowed to contact you once in a Trust Deed, any correspondence will be debt with our Insolvency Practioner (Your ‘Trustee’) on your behalf.
No. A Trust Deed is a legally binding agreement between you and your creditors to repay you debts at a reduced rate.
If your Trust Deed is not approved we can help you come to an informal arrangement with your creditors, usually through a Debt Management plan.
No exactly frozen but your creditors may agree not to add any additional charges as long as you keep up your set repayments.
No a trust deed is not a loan so there is no need for a credit check.
This does not matter, you can still take out a Trust Deed.
Only unsecured debts such as loans, credit cards, Overdraft or Hire Purchase can be included. You cannot include government debts such as Council or Poll Tax.
No. Although a Trust Deed will only fail if 33% of your creditors reject the proposal.
What if one creditor rejects it?
As long as this one creditor does not represent 33% of your overall debt then the trust Deed will not be rejected.
No, once the Trust Deed has been passed you creditors are not legally allowed to contact you ever again.
Once you have filled out our form one of our experienced advisors will give you a call and go through your situation with you. They will help you determine your repayment amount by calculating your disposable income from your income and expenditure details. If you are happy with this amount we will send the paperwork out for you to sigh or we can arrange a home visit if necessary. Once signed, it will take approximately 6-8 weeks to process. If your Trust Deed is passed it will become protected and you will no longer have to deal with your creditors anymore.
If you have a change in circumstances and are unable to maintain repayments your Trustee can request a variation from the creditors which will enable you to alter your repayment amount or schedule.
When a Trust Deed becomes protected it means that no further action can be taken against you by your creditors for recovery of the money you owe them. Your creditors have to accept the Trust Deed account as full and final settlement at the end of the 48 month period.
Simple fill out our form for a free call back or give us a call on 0800 043 2027 and speak to one of our experienced advisors.