“I need advice about Trust Deeds. What is a Trust Deed and how can it help me manage my debts? “
I am a director/sole trader with personal debts can a Trust Deed help me?
Yes. We specialise in helping directors and sole traders in financial trouble, and this is a common solution in Scotland. In England, Wales and Northern Ireland an individual voluntary arrangement would be the equivalent solution.
Can I apply for a Trust Deed in England?
No. Trust Deeds are written using Scottish Insolvency Law, but you can apply for an individual voluntary arrangement.
What is a Trust Deed?
A Trust Deed is a formal agreement between you and your creditors to pay back what you can afford towards your debts. They are an extremely powerful and legal tool to help you back on the road to financial stability. A Trust Deed is designed for people who have taken out too much debt and are struggling to meet their monthly repayments.
How long will it take for me to clear my debts?
Unlike the individual voluntary arrangement which takes five years the usual repayment period for a Trust Deed is 36 months (3 years) though this could be extended to 48 months depending on affordability. You will be required to pay a set amount per month for the 36 month period, after that your creditors are legally obliged to write off any remaining debts.
Do I continue to pay interest and charges?
No. Once you have entered into a Trust Deed all interest and charges are frozen, and no legal action will be taken against you.
How much does it cost me to set up?
A Trust Deed costs you nothing to set up. Trust Deeds are designed to get you out of debt, not to increase it. The amount you and your Trustee agree you can afford to repay each month (plus any equity, if applicable) is the only amount you’ll ever be asked to pay.
Who pays for a Trust Deed?
Your creditors are effectively agreeing to receive less back so that your selected Trust Deed company fees are paid for by the creditor for managing the arrangement. Any exceptions to this would be made clear before the Deed being set up.
Is it suitable if I have a property?
It depends on whether there is an equity value or not. For example, if your home increases to such an extent that you could satisfy your debts in full, you may be liable to pay an additional amount to cover your Trustee’s fees.
How long does it take to set up?
Unlike an Individual Voluntary Arrangement which can take 2-4 months most Trust Deeds only usually take between 2-4 weeks to be drafted. They are then passed to your creditors for approval which can take up to 2 weeks.
Will it stop creditors hassling me?
Yes. Once the Trust Deed is set up your creditors ARE NOT LEGALLY ALLOWED to contact you by any means, and you will no longer have to deal with them anymore. You simply make the arranged payment to your Trust Deed Company for the set period (usually 36 months), once this has expired any remaining debts are written off, and you walk away debt free.
How do I apply?
Simply call on 08000 746 757and we can start the process.
Do you do home visits?
Yes. We realise some people would prefer a face to face meeting and we are more than happy to visit you at your home if requested.
We are licensed and registered with the Office of Fair Trading so you can rest assured your situation will be dealt with professionally.
Call 08000 746 757 to speak with an experienced debt advisor about how a trust deed can help you now.