Is a Trust Deed right for me?
If you live in Scotland and are £10,000 or more in debt a Trust Deed may be a suitable way of clearing your debts.
Trust Deeds offer people struggling with a higher level of unsecured debt a legal arrangement for paying what they can afford every month towards their debts for an agreed period (usually 3 years), after which the balance of the debts are written off.
Like an IVA in England and Wales, a Trust Deed is legally binding between you and your creditors and has to be set up and supervised by a licensed Insolvency Practitioner.
Once the arrangement is accepted interest and other charges will be frozen and your creditors will no longer be allowed to chase you for payments. Any assets, such as your home and car are usually protected under the Trust Deed, although if you are a homeowner you may be required to release equity from your home to contribute towards your debts.
Whilst a Trust Deed will leave you free of the debts included you should also take into account the restrictions it places on you during the term of the arrangement and the effect it will have in the medium to long term, such as:
- No further borrowing can be entered into whilst you are in the arrangement. This includes the use of store cards and credit cards
- The arrangement is binding and the Insolvency Practitioner can petition for your Sequestration (Bankruptcy) if you default
- The Trust Deed will be noted on your credit file for up to 6 years (from the start of the arrangement) and you may have to declare it on any future mortgage or credit applications even after it is no longer visible on your credit record
What's the first step?
A quick and confidential phone call or an online application is all that's required. All we need to start with are a few details about your situation and the unsecured debts you have. You will not be committed to anything after the initial phone call and you will have time to evaluate your options.
Free Trust Deed Advice
If you would like to find out more about whether a Trust Deed is right for you call us on 0800 434 6281 or fill in the online application form above. Initial advice is free and completely confidential so why not give us a call today
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960