Write Off Unaffordable Unsecured Debts
With A Scottish Trust Deed...
What is a Scottish Trust Deed?
A Trust Deed is a legally binding agreement between you and your creditors to repay what you can afford towards your debts. It is a form of legislation to assist those who have serious debt problems and are struggling to meet their unsecured repayments each month.
How can it help me?
A Trust Deed can assist you in lots of different ways. Instead of paying multiple debts to numerous creditors a Trust Deed will consolidate all your debts into one single, lower affordable monthly repayment without the need for taking out a consolidation loan.
Once you have made your set amount of payments for the 48 month period any remaining unaffordable, unsecured debt is written off. This can mean if you owe £55,000 you could potentially have £49,500 completely wiped out.
Your assets, such as your car and your home can become protected which will prevent them from being repossessed by your lenders, unlike sequestration where you would be expected to offer these to cover the debt you have not repaid
Another bonus of a Trust Deed is that once you are in the programme your creditors are not legally allowed to contact you, meaning all those annoying phone calls and threatening letters will stop.
What is the process to setup a Trust Deed?
The administration for setting up a Trust Deed is a lot simpler than sequestration. Although it is a legally binding agreement a court appearance is not necessary, all correspondence and dealings will be handled for you by our licensed Insolvency Practioner. They are referred to as your 'Trustee' and will deal with your creditors on your behalf. Your 'Trustee' will assess your situation and establish a repayment plan you are comfortable with. They will then draft together the Trust Deed which usually takes approximately 6 weeks and present it to your creditors. Once they have accepted the Trust Deed will be passed and you will begin making your set monthly repayments, all phone calls and letters will stop and in 48 months.
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