Are you a Scottish resident struggling to pay off debts of more than £5,000? A trust deed could be the perfect solution to help get your finances back on track.
What is a Trust Deed?
In its simplest terms, a trust deed is an agreement set out between you and your creditors to pay back some or all your outstanding debt. Your assets and property are temporarily transferred to a third-party insolvency practitioner (known as a trustee) who will oversee your finances. They will aim to pay back as much capital as possible from your income and assets to avoid sequestration. This is known as a voluntary trust deed.
For added security, your trust deed can be awarded ‘protected’ status by the courts, legally binding creditors to the agreement. As long as you keep up your repayments, they’ll no longer be able to pursue additional legal or recovery proceedings, giving you the breathing space to focus on improving your finances.
What’s more is that they’ll usually only run for a maximum period of four years, at which point any remaining debt will be wiped off, leaving you with a clean slate on which to rebuild your credit rating.
Who is a Trust Deed suitable for?
Trust deeds can only be taken up by those bound by Scottish Law with debts of more than £5,000. Since a qualified insolvency practitioner will be dealing with your debt on your behalf, it’s a great way to reduce the stress and headaches that come with dealing directly with creditors on your own.
One of the biggest problems that debtors face when tackling creditors is managing repayments to multiple creditors. However, a trust deed will combine your outstanding debts into one simple monthly repayment making it far easier to keep on top of what’s owed each month.
Not sure if a trust deed is suitable for your circumstances? Take a look at our Debt Qualifier by clicking here and find out if you could benefit from a trust deed.
How can I apply for a Trust Deed?
The first step for any debt solution is to speak to a professional. At Write off My Debt, our friendly team of debt advice experts are on hand to guide you through the application process. Contact us today by calling 0800 002 9051 and experience the peace of mind that comes with taking positive action against your debts.
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