Our team can offer expert advice on whether or no you should think about a trust deed. Please complete our contact form for more information.
There are various solutions for debts, but trust deeds in UK are becoming more popular. Please complete our contact form for more details.
If you are looking for a trust deed calculator, our team can help you. Please speak with us now for more details on how to calculate whether you should get a trust deed or not.
Getting help with your debts if they are starting to get out of control is one of the most sensible things you can do. It may seem like there is no option but to keep on struggling but, we’re here to tell you that’s not the case.
No matter how bad your circumstances are we are confident that we can find a debt management solution that will best suit you. One of these options is the trust deed which has helped countless people in Scotland to rearrange their debts into something much more manageable.
If this sounds appealing, then you might want to know what is a trust-deed in the UK? A trust-deed is only available to residents of Scotland. The equivalent for the rest of the UK is called an Individual Voluntary Arrangement, or IVA.
An IVA shares many of the same values as the trust-deed option in Scotland, but there are a few subtle differences;
A Trust Deed in Scotland lets you consolidate your debts into one monthly payment. There are some conditions that have to be met before applying;
If you can meet these three requirements then you can apply via an Insolvency Practitioner.
A Protected Trust Deed is slightly different to a regular one. With a Protected Trust-Deed you entrust your assets to a third party who will then sell them at auction on your behalf to pay towards your debts.
In order to protect a Trust-Deed it must be worth at least £5,000. The idea behind it is to protect you from further action from your creditors.
Now you know the basics, let’s see Trust Deeds explained a little further. In order to apply for a Trust-Deed you must enlist the help of an Insolvency Practitioner to represent you. Without one, you cannot apply for a Trust-Deed.
The job of the Insolvency Practitioner is to go through your household budget and see how much you can realistically afford to pay your creditors once all of your outgoings for the month have been paid.
Once you agree on a figure, the Insolvency Practitioner will apply to your creditors for the Trust-Deed. Once it has been confirmed, you will then pay your Insolvency Practitioner one payment a month. They will take a monthly fee from your payment and then distribute the rest to your various creditors on your behalf.
You might be wondering, should I apply for a Trust-Deed? The answer to that needs to be worked out with a debt management specialist or an Insolvency Practitioner.
An Insolvency Practitioner will go through your household budget with you and recommend whether they think Trust Deeds are appropriate for your circumstances. If they don’t then will offer another possible solution instead.
There are positives and negatives attached to entering into this deed that you need to fully aware of before making a decision. A few of these can be found below.
Let’s go through the various advantages first:
Now, for the disadvantages:
A local expert can offer help and assistance when calculating your incomings and outgoings. If you are interested in speaking with one of our nearby team members closest to you or in surrounding areas, please get in touch now.
Using a Trust-Deed calculator will help you to work out your income to outgoings ratio. This will be incredibly useful when trying to determine how much you can realistically afford to offer your creditors. For an incredibly accurate calculator, please complete our contact form and we can help you.
How does it work? It works by offering your creditors a reduced payment compared to what you would normally pay them, and they accept that they will make a considerable loss on what they borrowed you.
Why would they do this? The vast majority of creditors would rather get some of their investment back than nothing at all. If you went down the route of applying for sequestration then there is a good chance they would get no return at all. This is why they are amiable with Trust Deeds.
Please, contact us if we can help to set up a Trust Deed for you. Likewise, if you have any questions about the process at all, contact us and we’ll be glad to help.