Category: Debt Advice

How Do I Get A Scottish Trust Deed?

Posted on by Craig Stocks
Everything you need to know about getting a Scottish Trust Deed. A Scottish Trust Deed is a form of Scottish debt help that reduces unaffordable debt repayments down to one single monthly payment and helps you to write off up to 60-80% of unsecured debts. As the title suggests, it is only available to residents in Scotland and will generally last for a period of four years, however sometimes a longer period is considered and that typically may increase the duration by a further 12 months, or longer depending on the circumstances surrounding the case. Scottish Trust Deeds are legally binding and are designed to help those with a debt level over £5,000 and are struggling to repay their debts. The Protected Trust Deed as it’s more formally refered to uses official legislation to negotiate an agreement between an individual and the companies that they owe monies too, arranged by an Insolvency Practitioner (IP) who acts as Trustee. When you apply for a Scottish Trust Deed an assessment of your affordability will be carried out to work out what you can reasonably afford to pay each month. This Trust Deed suitability-checker will document your income minus your day-to-day living expenses e.g. mortgage, household bills, travel expenses and so on. As well at the Scottish Trust Deed, you would also be assessed for your eligibility for alternative solutions, including the Debt Arrangement Scheme. After you get a Scottish Trust Deed, any remaining unsecured debts will be written off, including the interest and charges that were frozen at the beginning of the process. Finally, a Scottish Trust Deed is not a debt consolidation loan. You will not be borrowing money, you will not be credit-checked for approved finance.

Getting A Scottish Trust Deed – 8 Stages In the Process

With so many options and different points-of-view, we know that it can be confusing to understand and decide if this is the right form of Scottish debt help for you. We have broken the Trust Deed Scotland® process down into 8 steps to explain how getting a Scottish Trust Deed works.
  1. Trust Deed Scotland® will arrange an in-depth review of your financial situation, provide you with a personalised illustration and agree with you on what a realistic yet affordable monthly payment looks like and agree with you how your assets will be treated.
  2. Only when you’re happy to go ahead with a Scottish Trust Deed, your Trustee will go over the terms of the arrangement and once you are 100% satisfied with the terms, will you then sign it off.
  3. After you have signed your Scottish Trust Deed, your Trustee will then make a proposal, on your behalf, to your creditors. The Trust Deed proposal will advise them of your income, expenditure and offer of how much you can realistically afford to pay each month.
  4. Your Trust Deed is then registered on the formal bodies website, where your creditors can access it. The formal body that regulates the process is known as the Accountant in Bankruptcy (AiB).
  5. The people you owe money to are sent the proposal within 7 days of the Trust Deed advert on the official website. Creditors are then given 5 weeks to review the proposal and either accept or reject the terms. They must contact your Trustee as creditors at this point can’t directly contact you.
  6. If the majority of your creditors accept the proposal then the Trust Deed will gain protected status. If the people you owe money to fail to respond to the proposal, it is believed that they have agreed to the terms.
  7. As soon as your Scottish Trust Deed is registered as protected, your creditors can no longer take any legal action against you to recover any debts and any interest and charges on your debts are frozen.
  8. All you need do then is make your payments as agreed, complete an annual Scottish Trust Deed review to check your personal details, income and expenditure details are up-to-date and look forward to a brighter future.
When you apply for a Scottish Trust Deed, you will also have an understanding of all available solutions open to you and the key facts that ultimately help to put you in control of the decision making process with the advantages and disadvantages fully discussed and understood.

Can I Negotiate Getting A Scottish Trust Deed Myself?

Only a licensed Insolvency Practitioner can set up the arrangement on your behalf, unfortunately. There are many licensed Insolvency Practitioners in Scotland, and while it’s true that there may be slight differences in the quality of service you may receive from them, all IPs are regulated to ensure that you, the client and your needs are at the forefront of the process. You may also want to consider whether or not is a Trust Deed is a good idea for you, and any alternatives such as the Debt Arrangement Scheme. Is a DAS Worth It? Sequestration, Scottish bankruptcy sounds daunting. And it’s fair to say its the most drastic solution you can undertake to resolve your debts but in the right circumstances, it can help you to get out of debt. While we often advise against it, a loan can be a way of consolidating debt in Scotland.

Why Trust Deed Scotland?

At Trust Deed Scotland® we’re really proud of our reputation and our achievements within the industry. You can find out more about Trust Deed Scotland and we always welcome questions from anyone struggling with debts. You can contact Trust Deed Scotland at any time. 30,000 People Helped – The number of people we’ve helped with debt in Scotland over the last decade or more shows the in-depth level of experience we have. No.1 Rated On Trustpilot – We’ve gathered thousands of reviews on Trustpilot, which are independently audited and verified by the platform themselves. Having debt still has a stigma attached to it, however, we’re pleased that our service compels people to openly write reviews about us. Not only does it highlight how well we’re doing as a company but also allows people to read about how other people got themselves into financial difficulties, helping them to understand there really is no need to feel embarrassed, or ashamed about having debt. 98.6% Creditor Acceptance Rate – When you apply for a Scottish Trust Deed with us, we will use our industry experience to give you everything you need to know and whether it is likely that the application will be successful. The pros and cons will always be explained, and you may decide that an alternative solution like the Debt Arrangement Scheme is more favourable for your needs. Up to 70% Reduction In Monthly Payments – The amount you repay each month will be based on you and your lifestyle and we’re able to reduce the amount you repay, by as much as 70% each month. No Setup Fees – You’re experiencing financial difficulties. We have strong ethics. Therefore setup fees, finders fees, charges for advice; whatever way its described – none of these make sense to you, nor us. This should be true for many other providers of Scottish Trust Deeds, but cannot be guaranteed. If anyone says otherwise, walk away. Specialist Advice – Some companies still offer an ‘introducer’ service without the right level of experience. Predominantly, the same types of people who cold call, send text messages or purchase data lists. Not only are we authorised by our regulatory bodies, we also have internal commitments to undertaking rigorous training and feedback sessions with our advisers. 100% safe, secure and confidential. You can also take comfort in knowing that your data is safe with us as we don’t sell your details onto third-parties. Registered Trademark – We’re the official Trust Deed Scotland®. Our brand name is protected to ensure that no copycats can trade falsely using our strong brand name.

How Much Will My Trust Deed Payment Be?

Posted on by Craig Stocks
If you live in Scotland and you’re thinking about entering into a Trust Deed, one of the most important things to understand is how much you will need to pay the people whom you owe money to every month. You may have seen ads on social media promoting Trust Deed payments at £70p/m or £20p/w but this is a misleading headline if taken completely at face value. Whatever amount you do agree to pay, you will pay this amount for a fixed period of typically four years, after which any debt that is not paid after this time is written off. It’s therefore important for all parties that the amount agreed is affordable for you, for the duration of the Trust Deed. The monthly Trust Deed payments you have to make are based on your disposable income. Disposable income, also called surplus income, is the money you have left each month after all your reasonable living expenses are paid. For example, if your total net income per month is £1,600 and your total living expenses per month are £1,500, your disposable income is £100 (£1,600 – £1,500 = £100) This disposable income figure left over is the amount you have to pay the people you owe money to, which essentially becomes your Trust Deed payment. However, this is a very simple example. Understanding which expenses you should include and how much for each expense is reasonable are important also. Trust Deed payments made into a Protected Trust Deed in Scotland have been worked out using the Common Financial Tool. Consider too that other solutions exist such as the Debt Arrangement Scheme or Sequestration which may benefit you more than what a Trust Deed could.

What is the Common Financial Tool?

The Common Financial Tool (CFT) is used to assess household income and expenditure for all statutory debt solutions in Scotland i.e. Trust Deeds, Debt Arrangement Scheme and MAP/Sequestration. At Trust Deed Scotland® our expert advisors will run through your living expenses with you and advise of whether they are within guidelines. Remember, you would typically be in a Trust Deed for 48 months and would be prepared to live within a fairly attributed budget for that duration. The guidelines were developed by representatives from the official body, the Account in Bankruptcy, alongside other recognised bodies and debt charities. This means that usually whatever expenditure you have, will be included within the common financial tool guidelines as fair and reasonable. If you want to get started and work out what you’re Trust Deed payment is likely to become, we recommend trying our Trust Deed Wizard® tool.

What will be included as expenditure in my Trust Deed?

Essential expenditures include your mortgage or rent, utility bills and council tax bills and these will be included as expenditure in the Trust Deed ‘as they are’ Extra expenditure allowances are also built in to cover the costs of looking after dependent children. The guidelines used in the Common Financial Tool are based on the Living Costs and Food Survey produced by the Office for National Statistics for the UK government. Your expenditure during a Trust Deed may be limited to a lesser extent. However, you and your family will be able to manage financially on the expenditure allowances provided. Most other types of outgoings are subject to the guidelines used in the Common Financial Tool. These expenditure guidelines assign varying maximum and minimum amounts which are deemed ‘reasonable’ according to your unique family circumstances. Your food allowance will be higher for a couple than it would be for an individual. In addition to food, other examples of these expenditures include sport and leisure activities, TV and internet, hairdressing, newspapers, and insurance.

How to calculate a Trust Deed Payment when you’re paid weekly?

If you receive any of your income weekly, four weekly or fortnightly, the amount you pay will need to be converted into a monthly repayment figure. If you’re paid weekly, your Trustee does this by multiplying the weekly amount by 52 (weeks of the year) and then dividing that figure by 12 (months of the year). If you’re paid in a four weekly cycle, you will multiply the 13 4 weekly cycles in a year and divide this by 12 and for fortnightly, 26 payments divided by 12 months.

Is there a minimum Trust Deed payment?

There is generally no minimum payment that are required for Trust Deeds as long as the amount you are proposing to repay is the best offer you can reasonably afford on a regular basis. However, the amount you pay into the Trust Deed must represent both a sensible repayment to your creditors and the reasonable fees that the Insolvency Practitioner needs to deduct from your payments to pay for its maintenance cost. And remember, you should never pay any sort of upfront fees, setup fees, arrangement fees or anything else before entering into your Trust Deed. In general speaking terms, it is unusual to start with payments which are less than £100 a month. However, just because there is an amount specified here a minimum Trust Deed payment and that’s a figure you think would be affordable; it doesn’t automatically mean that the Trust Deed is the most suitable solution for you, or that the proposal would be approved with this repayment offer. Trust Deed Scotland will carry out a detailed assessment of your income, expenditure, assets and total amount of unsecured debt you have so that we can understand your circumstances. There are some other factors that we may need to look at as well, but with this information, we can then provide you with a personalised illustration of what your options are, plus the pros and cons of each. Also, remember that the calculation for Trust Deed repayment is used for all statutory debt repayment options under the Common Financial Tool guidelines, so if you can’t afford the Trust Deed then a solution such as Minimal Asset Process may be more beneficial for your needs. Other considerations include joint debts you may have with a partner/spouse. It’s also important for you to learn about alternative solutions, how they may affect you and to be informed of all the key facts, in order to make a balanced decision over what you would like to proceed with.

Can I haggle over my Trust Deed payment?

If you’re in financial difficulties, the appeal of saving money is always alluring. After all, we can switch energy suppliers online, beat down our Sky TV and Virgin Media subscriptions, and play them off against one another to save money, or we can use discount and voucher codes to get money off furniture, clothes and even takeaway food. But haggling over your monthly Trust Deed payment is not something that is possible. You’re free to speak to as many companies as you feel comfortable with, however, each company should correctly assess your circumstances and the payment amount should always remain the same, and ultimately based on what you can afford. Instead of haggling over Trust Deed payment amounts, we would instead advise you to focus on what is more important for the duration of your Trust Deed. Creditor Acceptance rate – At Trust Deed Scotland, we have a 98.9% Trust Deed approval rating and 99.8% Debt Arrangement Scheme approval rate. There are alternatives we offer advice on too. Trust Deed reviews – We’ve got thousands of five star Trust Deed reviews. In-House Team – Our experienced debt advice team have helped over [volume] people since 2009. Our commitment to the quality of service we provide remains our top priority throughout your debt help journey, from start to finish. That’s why it is important you choose the right company. You will never be passed to another company to implement your debt solution. These are just some of the reasons we’re ranked number 1 in the category ‘Debt Relief Service’ in Scotland. If you are struggling with unaffordable debt, you can call us for confidential advice on 0141 221 0999, or try our Trust Deed Wizard® to get started now.

What debts does a Protected Trust Deed include?

Posted on by Craig Stocks
The type of debts that can be included in a Protected Trust Deed are generally those that are described as unsecured, with some exceptions. When you enter into a Protected Trust Deed in Scotland, most of your unsecured debts will be included and this may include:
  • Credit Cards
  • Personal Loans
  • Overdrafts
  • Catalogues
  • Gas and Electric Arrears
  • Council Tax Arrears
  • Payday Loans
  • Store Cards
  • Buy Now Pay Later Agreements
  • Any Other Outstanding Personal Bill e.g. Vet Bills
There are other debts that can be included in Trust Deeds, but we recommend contacting us today confidential advice as it’s important to understand not only the debts that you have and whether or not debts those can be included in a Protected Trust Deed, but also other aspects include your affordability, total debt owed and your income vs. expenditure. On some occasions, an alternative Scottish debt solution may be more beneficial for you.

What types of debt are excluded from a Protected Trust Deed?

Typical debts that aren’t included within a Protected Trust Deed include:
  • Mortgages
  • Secured Loans
  • PCP and PHP Agreements
  • Hire Purchase Agreements
  • Court Fines
  • TV Licence Arrears
  • Student Loans
  • Child Support Arrears
You can also find out more about the differences between secured and unsecured loans, if you’re unsure what this means.

Can joint debts be included in my Protected Trust Deed?

A joint debt in Scotland is a debt that has your name and the name of the other person you entered into it with on the agreement. A joint debt can be included in a Protected Trust Deed, however, the other person named on the debt will still be responsible for making payments towards it. This is also true of guarantor loan debts in Scotland. If you have some of the debt written off, the other person will still be asked to pay the remaining money back, therefore that debt isn’t written off in the same way that the other debts that included in the Protected Trust Deed would be written off. If you have joint debts, and are thinking about applying for a Protected Trust Deed, you should contact us for confidential advice first. We can let you know how it would affect you and the other person named on the debts.

What happens to my debt during a Protected Trust Deed?

Before Trust Deeds are agreed, proposals are put to the creditors who monies are owed to. If the creditors agree to the Trust Deed, you’ll make monthly payments towards the Trust Deed for 48 months, or 60 months if this was agreed as an extended duration for the Trust Deed. When your Protected Trust Deed has been complete, you’ll be discharged. At this point, any balances outstanding on the debts included in your Trust Deed will be written off.

Is a Protected Trust Deed right for me?

To find out if a Protected Trust Deed is right for you, we advise you to try our online Trust Deed Wizard® tool. This will begin the process of finding a debt solution for you, based on your own unique circumstances. When you’re looking at the types of debts that can be included in a Protected Trust Deed, you may have debts that can be included such as those owed to family and friends but you may benefit from speaking to Trust Deed Scotland® in order to find out the advantages and disadvantages of doing so. There are alternative solutions to Trust Deeds in Scotland, one of which is the Debt Arrangement Scheme. When you speak to an expert money advisor, all pros and cons will be explained to you, and sometimes the type of solution that fits your needs best may not be a Protected Trust Deed after all. When considering your decision on whether a Protected Trust Deed is right for you, we have previously written articles in response to questions we’ve previously been asked such as Is A DAS Worth It? or Is A Trust Deed A Good Idea? Trust Deed Scotland® has thousands of reviews on Trustpilot, however, we also offer Debt Arrangement Scheme and Sequestration advice, which means you will be given balanced, fair advice that puts you in control of the decision-making process.

Do Trust Deeds Affect Spouse Or Partners?

Posted on by Craig Stocks
Entering into a Trust Deed in Scotland will not directly affect your partner or spouse unless you have joint debt together. When you sign a credit agreement as an individual, because you have done so in your own name; your spouse or partner is not responsible to pay your debts. If you start a Trust Deed, your partner or spouse will not be directly involved with the agreement. Your other half will not be forced to help you repay your debt and your creditors are forbidden from revealing details of the debt to your partner/spouse unless given clear permission to do so by you. This doesn’t matter if you are married, or not. When considering whether Trust Deeds affect a spouse or partner, consider the impact of reduced monthly spending and how this may impact your monthly budgeting. You can find out more about this in our article about how much will your Trust Deed payment be.

Joint Trust Deeds

You can’t have a joint Trust Deed, in the same manner, that you can enter into a joint Debt Arrangement Scheme, for example. There is nothing stopping you from having two individual Trust Deeds, as long as there is enough qualifying debt on each application.

Joint Debts

You can find out more about joint debts, however in brief there isn’t a one-size-fits-all approach and you can in theory include joint debts in your Trust Deed, however, the other party becomes liable for the balance of the debt.

Do I Need To Tell My Spouse About My Debts?

It is possible for an individual to enter into a Trust Deed and complete a full repayment period without their spouse or partner finding out about the debts, however, we typically encourage our clients to be open about their financial difficulties for emotional support. Hiding debt from partners and keeping them a secret from your family or closest friends can be less of a burden if shared. As a company that has become the No.1 rated for debt advice across Scotland, we’ve helped over [volume] people look forward to a brighter future. Each of those [volume] people is someone’s wife, husband, fiancé, fiancée, father, mother, son, daughter or friend. We’re finding that more and more people are approaching us for Scottish debt help after being recommended by an individual who has already been through the process. Not only is this a testament to the service provided by Trust Deed Scotland® but also highlights a growing number of people who feel confident enough to discuss their finances with those closest to them; whether that be a spouse, family member, or even a work colleague. You may want to consider your credit rating and how that may affect your spouse or partner and should you wish to attempt joint credit applications, this will typically have an impact on the joint application.

Joint Debt Advice & Help

It is possible to arrange a call with you and your spouse or partner on the same call. Our debt experts will arrange a time that is suitable for both of you – whether that be on the same call, or on separate calls – whatever is most convenient for you. Home visits are also growing in popularity for this reason. Contact Trust Deed Scotland today on 0141 221 0999 or try our Trust Deed Wizard® tool to find out what Scottish debt solutions you may qualify for. When you’re weighing up the pros and cons of which solutions may be best for you, look for debt advice reviews. Independent reviews platform such as those featured on Trustpilot give you an idea of which companies are good to approach. Trust Deed Scotland® have [reviews] five star reviews to date.

Can Creditors Chase Payments In A Trust Deed?

Posted on by Craig Stocks
When you’ve got unaffordable bills and you’re in a position where you owe money to a number of companies, the thought of creditors chasing repayment by making your phone ring with an unfamiliar telephone number or knocking on your front door can create a feeling of dread inside. A creditor – the people you owe money to – can be anything from your local council chasing you for overdue Council Tax arrears, to your credit card company. For many people in Scotland, even the postman delivering letters to an address can help cause further stress and anxiety to those fearing creditor contact over unpaid debts. Yes, a Trust Deed can reduce your monthly payments down to an unaffordable amount, stop interest and charges and write off some of the debt but one of the other advantages is that creditors can no longer continue to chase you for payment. The people that you owe monies to are not allowed to:
  • Chase you for debts covered by the Trust Deed.
  • Contact you directly about the Trust Deed or the debts included in it.
  • Add interest or charges to the debts included in Trust Deeds.
Trust Deed Scotland, having helped [volume] people in Scotland in a similar predicament have gathered thousands of reviews where many of our customers mention that they can sleep at night, safe in the knowledge that their creditors are no longer harassing them over payments. Entering into a Trust Deed means you’ll make payments on a regular basis and when a Trust Deed is protected, the creditors are legally bound by the terms of the arrangement. Creditors may contact you from time-to-time but you’ll find that this is informational. E.g. to inform you that your debt has been sold onto a new company. In this case, any new company that purchases the debt is still bound by its terms. Find out more about a notice of assignment. Annual statements, default notices are typical letters you’d also receive. The same is true for the Debt Arrangement Scheme, where you’ll continue to make payments under the terms of your Debt Payment Programme. Being contacted by your creditors while you’re paying them back through a Trust Deed can be frustrating and worrying, and it’s normal during the first few week. This is due to it taking some time for creditors to update their records after your Trust Deed, or DAS is approved. However, over the first 3-6 months of your Trust Deed, contact from your creditors should gradually start to reduce. If you do find yourself in a position where creditors chase their payments, threaten you with enforcement action or even just sent you an annual statement – you simply forward the information to your Trustee who will deal with this on your behalf. There are types of communication from creditors that are more important than overs, even if they all do sound threatening. Whether you’re with Trust Deed Scotland® or another firm; the key is to forward all correspondence to your Trustee. An advantage of using Trust Deed Scotland® over other companies that you find on Google, or social media is that the advisers are based in-house with direct contact with one another. This matters as some companies act as lead generators, introducers or intermediaries which may result in delays, as those companies essentially act as middlemen between yourself and the Trustee. This can be further evidenced by browsing our debt advice reviews, hosted on the independent reviews platform Trustpilot. Our review, written in our customers own words, often talk about how quick and easy the processes are. With good reason – it’s no fluke, it’s due to us being an end-to-end provider of debt advice in Scotland, and being able to implement those solutions completely in-house.

Getting help with creditors chasing payments

If you are being harassed by creditors or their debt collectors chasing their payments, you’re experiencing difficulties with Sheriff Officers in Scotland or you’re in debt due to a recent change in your circumstances, get in touch today for debt advice. Our debt advisory service commitment to you. Confidential – Your details are 100% safe and secure with us. Non-Judgemental – We’ve dealt with people from all walks of life, from all across Scotland. Balanced – Our advisors give the risks and benefits of all solutions that you’re suitable for, not just the bits we think you want to hear. Personalised – The advice we offer and the debt solutions that we then subsequently implement are tailored to your needs. Our main telephone number is 0141 221 0999, or you can get an indication on what your options are by completing our Trust Deed Wizard® tool.

What’s a Debt Relief Order In Scotland?

Posted on by Craig Stocks
A DRO, known as a Debt Relief Order, is a solution to debt only available for residents of England and Wales. However, in Scotland, we have equivalent insolvency solutions that are just as effective. This is not uncommon due to the nuances of the different legislative systems in Scotland versus the rest of the United Kingdom, for example, there are also differences between IVAs and Trust Deeds. The first of these alternative solutions to the Debt Relief Order in Scotland is known as a Minimal Asset Process which is a means of writing off debts that you would struggle to repay within a reasonable time. The most common debt relief tool in Scotland is known as a Protected Trust Deed. Loosely speaking, this is Scotland’s equivalent of a Scottish IVA. You can find out more about the Benefits of Trust Deeds and Risks of Trust Deeds by calling Trust Deed Scotland® on 0141 221 0999. Try our Trust Deed Wizard to find out if you would qualify for a Trust Deed. Likewise, with both MAP and DRO, there is a Scottish equivalent of bankruptcy known as Sequestration. Lastly, in terms of legislated, formal statutory debt management solutions open to Scottish residents, there is the Debt Arrangement Scheme. Again, you can find out more about both the advantages of DAS and disadvantages of DAS by calling Trust Deed Scotland on 0141 221 0999.

Debt Relief Order vs. Minimal Asset Process?

Sequestration or Bankruptcy are the most severe forms of insolvency, with the biggest risks attached to them and consequences for homeowners and those with certain careers. Entering into either DRO or MAP is a decision that shouldn’t be taken lightly, and only after speaking to a qualified money advisor. Although both DRO and MAP are formal debt solutions, you do not need to appear in court. Both the Minimal Asset Process in Scotland and the Debt Relief Order in England or Wales are completely free to apply for. There is no minimum amount of debt that you can owe in order to be eligible for a Minimal Asset Process and the maximum is £25,000. The maximum amount of debt required to be eligible for a Debt Relief Order in England or Wales is £50,000. For an DRO application, you’ve got no more than £75 left over each month after you’ve paid your typical household expenses. For a MAP application, you have no disposable income. You cannot apply for either the Debt Relief Order or Minimal Asset Process if you are a homeowner and if you have a car valued at over £3,000, you cannot apply for a Minimal Asset Process. Debts are written off with a Debt Relief Order after 12 months whereas the Minimal Asset Process duration is 6 months. Self-employed, small business debt help solutions exist but generally, a Debt Relief Order or Minimal Asset Process may not be the best way of getting your finance back on track due to the restrictive nature and impact on your ability to obtain credit for cashflow purposes.

What debts can be included in a DRO/MAP?

Most unsecured debts can be included in a Debt Relief Order, or Minimal Asset Process in Scotland including credit cards, personal loans and council tax arrears. Debts that cannot be included in a Minimal Asset Process or Debt Relief Order are debts that may have been taken out fraudulently, child maintenance arrears, court fines and student loans.

Is the Minimal Asset Process right for you?

If you would like to find out if MAP bankruptcy is right for you, you can call us on 0141 221 0999. When you’re looking for Debt Help in Scotland, we would always recommend that you speak to an experienced debt adviser. You may similarly be asking yourself is a Trust Deed right for me, or is a DAS worth it. These are perfectly normal questions that we’re asked on a daily basis, and our experienced debt advisers not only specialise in providing debt advice but regularly get praised on Trustpilot for being non-judgemental and friendly. If you are considering reaching out for help with debts, debt advice reviews are an excellent place to start. We’ve gathered thousands of reviews where our customers tell us in their own words about their experience. Trust Deed Scotland® explain the pros and cons of all solutions and offer tailored recommendations based on your individual circumstances. However, once you’ve received the facts and fully understand how you may benefit from any solution, the decision should always be made by you.

Trust Deeds vs Sequestration

Posted on by Craig Stocks
Help to understand both the similarities and differences between Trust Deeds vs Sequestration in Scotland. Trust Deeds and Sequestration are two formal debt solutions in Scotland, alongside Debt Arrangement Scheme. Sequestration is the Scottish equivalent of Bankruptcy whereas Trust Deeds are similar to an IVA. When considering Trust Deeds vs Sequestration, there are some factors to consider and there are two types of Sequestration; Full Administration Bankruptcy and Minimal Asset Process Bankruptcy.
Trust Deeds vs Sequestration – Similarities
Both are personal insolvency solutions that provide legal solutions to unaffordable debt in Scotland, that help provide you with a route to a brighter future.
  • Both allow you to repay debt on your own terms, at your own affordability.
  • Stop creditor contact and further stops them taking legal action against you.
  • Helps write off a chunk of the debt you owe.
  • Remain on your credit report for 6 years, which makes it more difficult but not impossible to take out further credit.
  • Impacts employment, depending on the type of industry that you work in, and/or job function that you perform.
Trust Deeds vs Sequestration – Trust Deeds
  • Trust Deeds – Allow you to protect the things you care about most – Your home, your car and your ability to pay typical essential bills like mortgage, rent, council tax and day-to-day outgoings that you and your family need to live on.
  • Writes off debt after a typical period of 4 years. All 48 monthly payments are based on what you can afford to repay on your own terms.
  • Have no initial fees, and your Trustees fees are paid as part of the monthly affordable payments.
  • Typically requires a minimum unsecured debt of £5,000 to qualify.
Trust Deeds vs Sequestration – Sequestration
  • Sequestration – Will typically result in the sale of valuable assets such as your home.
  • Writes off the debt you owe within one year, but repayment may continue for 48 months.
  • May be invoked by your creditors rather than you based on how much you owe, this was recently amended to a minimum of £10,000 as part of the recent Coronavirus ( Scotland) Act.

Sequestration Considerations

It’s important to note that Sequestration has different benefits, risks and fees associated with Sequestration than with other debt management solutions. Before you make a decision on whether or not to apply for Sequestration, you should seek expert debt advice as there are a number of considerations to think about. You can call Trust Deed Scotland® today on 0141 221 0999 for a quick chat about your situation, or allow us to provide you with a more personalised illustration of which options may be available for you. Our advisors are friendly and non-judgemental, and their qualified, expert advice is confidential, balanced and without obligation. Bankruptcy has both an emotional and social stigma attached to it throughout the world and this is no different here in Scotland. We can feel a mixture of guilt and embarrassment when forced to consider Sequestration. Every year, thousands of Scots are declared bankrupt and that is almost always as a result of circumstances beyond their control. During difficult periods of recession, high unemployment and austerity measures, this has amplified these figures in recent years. The social and emotional stigma may make you feel bad about your situation. However, Sequestration can sometimes be the most appropriate way to manage your debts and get yourself back in control of your finances. There is also a financial stigma caused by Sequestration e.g. your credit score will worsen and any credit cards you apply for in the future will carry a higher interest rate. If Sequestration is not right for your circumstances, or other alternatives exist, we’ll advise you on what other options are available to you. You can be assured that in any situation all pros and cons would be explained and the decision you make is entirely your own. Sequestration fees have been temporarily reduced for the most vulnerable as a result of recent changes brought on by the second Coronavirus Bill. MAP application fees are removed for those in receipt of specified benefits, and reduced to £50 from the current £90 for all others. Fees are reduced to £150 and are waived for those in receipt of specified benefits.

Trust Deeds Considerations

Again, it’s important to note that Trust Deeds have different benefits, risks and fees associated with Trust Deeds than with any other debt management solutions. Before you make a decision on whether or not to enter into a Trust Deed, you should seek expert debt advice as there are a number of considerations to think about. You can call Trust Deed Scotland® today on 0141 221 0999 for a quick chat about your situation, or allow us to provide you with a more personalised illustration of which options may be available for you. Our advisors are friendly and non-judgemental, and their qualified, expert advice is confidential, balanced and without obligation. If you have assets, Trust Deeds are usually the preferred solution when measuring up Trust Deeds vs Sequestration. In order to be considered for a Trust Deed, you need to have an income. Only a licenced insolvency practitioner can administer a Trust Deed on your behalf and while there are no setup fees charged by Trust Deed Scotland® this may not be the case with other Trust Deed companies. If in doubt, you should ask the company what their setup fees are before proceeding and ask them for a full breakdown. You should never feel pressurised into proceeding Creditors can vote against your Trust Deed becoming Protected, and you may consider it important to choose a company based on their ability to ensure your Trust Deed is protected. Trust Deed Scotland® have a creditor acceptance rate of 99%. A Trust Deed would never be proposed on your behalf without explaining whether it was likely to be protected. Failure to keep up repayment of your Trust Deed could ultimately result in you being Sequestrated. Therefore it’s important that you only proceed with a Trust Deed when it’s affordable to you. It’s possible to try and shoehorn you into fitting the Trust Deed criteria, but this doesn’t serve your interests if it results in your Trust Deed failing. Trust Deed Scotland® will always have your best interests at heart, and our in-house team are with you every step of your journey. We’ll never sell your details onto another company.

Trust Deeds vs Sequestration – Alternatives

The Debt Arrangement Scheme is an alternative to both Trust Deeds and Sequestration. Find out more about the advantages and disadvantages of the Debt Arrangement Scheme and other alternatives in our Scottish debt solutions guide, or by calling us today on 0141 221 0999.

Can I Get A Trust Deed If I’m Self Employed?

Posted on by Craig Stocks
The short answer is Yes. Yes, you can get a Trust Deed If you’re self-employed. As a sole trader you can enter into a Scottish Trust Deed.  It is a legally binding agreement to pay back creditors over a set period of time, typically 4 years. This can be monthly instalments, a lump sum payment, or a combination of both and this is set up by an Insolvency Practitioner. If you are in a business partnership, the partnership can include partnership debts in the Trust Deed. It is normal for each individual in the partnership to setup the Trust Deed at the same time. This is due to partners becoming personally liable for partnership debts. Setting up an individual Trust Deed at the same time ensures that these debts are also dealt with and creditors cannot take any further action against individual partners. Learn more about your options in our small business debt help guide. Whether you’re a sole trader, limited company or partnership; the Small Business Debt Help provided by Trust Deed Scotland® is aimed at former trading businesses and current trading businesses. Our solutions included Self Employed Trust Deeds and the Business Debt Arrangement Scheme. The Business Debt Arrangement Scheme is an alternative to a Trust Deed, and like a Trust Deed gives you legal protection from your creditors but does give you time to repay what you owe. This debt solution option is open to sole traders and partnerships. However, it’s not available for limited companies. While some of your debt can be written off with Trust Deeds, this is not possible with a Business Debt Arrangement Scheme; but does allow you to freeze interest and charges.

Will My Business Assets Be Sold?

If you’re self-employed, your tools of the trade are unlikely to be at risk. If you own a small limited company, you should be able to keep your shares in the company – However, you should seek debt advice first, in order to establish the facts.

Can I Continue Trading With A Trust Deed?

Yes, you can continue to trade while repaying your Trust Deed. Business and personal debts can be included and you would normally be able to carry on trading. However, it could mean that you have to include business and personal assets in your Trust Deed, or Business Debt Arrangement Scheme. You can carry on trading if your partnership enters into a trust deed. However, it could mean that you have to sell some business assets to pay off your creditors. You might also find it difficult to get credit facilities and business banking. This is because the Trust Deed would be recorded on your credit reference file and the Register of Insolvencies for a period of 72 months.

Can I Include HMRC Debts?

Yes, any qualifying debt gets included in the Trust Deed, or Debt Arrangement Scheme. However, you should get advice from a qualified advisor to review your circumstances and to provide a personalised illustration based on your situation.

Can I Still Be A Company Director?

A Protected Trust Deed itself does not prevent you being a company director. The company itself may have rules on this. These rules are recorded in the company’s Articles of Association. The organisation may prevent an insolvent person from serving as a director. However, this may not always be the case. If it’s your own company, it’s possible to change the rules to remedy this issue. An Insolvency Practitioner can help give you advice on this.

Where Can I Get Self Employed Debt Advice?

You can get Self Employed Debt Advice today by calling Trust Deed Scotland® on 0141 221 0999. Our experienced debt advisers have helped thousands of self-employed individuals in Scotland. We can give advice on important business debts such as tax and business rates, provide advice if creditors are taking court action, we can help you review your business finances and explain the pros, cons and alternative steps you can take. Try our Self Employed Debt wizard to start the process now.

Help Repaying Catalogue Debts In Scotland

Posted on by Craig Stocks
A high number of people are asking Trust Deed Scotland® for help repaying catalogue debts when they approach us for Scottish debt help. Catalogues are a popular way to make purchases and then spread the cost over a number of monthly payments. This can help make expensive purchases seem more affordable, but catalogues are often an expensive way to borrow and have high-interest rates. Some catalogue firms even advertise themselves as bad credit or poor credit catalogues. In which case, the interest is most likely even higher to offset risk. As most catalogue companies let you spread the cost of payments over a period of time. You’ll typically pay interest, which means that making just the minimum payments can lead to a bigger unaffordable debt. It is common for catalogue companies to advertise their products in a way that describes them as affordable – and breaks the cost down to a per day, per week, per month arrangement in order to hook individuals in and buy additional items at a later date, without adding all the sums together. When applying for a catalogue credit facility, reasonable affordability checks aren’t as thorough as some other lending facilities.
Catalogue Companies Used in Scotland
The most popular catalogues in Scotland include:
  • Ambrose Wilson
  • Argos Catalogue
  • ASOS
  • Debenhams
  • Grattan
  • JD Williams
  • John Lewis
  • Littlewoods
  • Next
  • Simply Be
  • Very.co.uk
  • Yes Catalogue
 

What happens if you can’t afford to pay your Catalogue debt?

Should you miss payments to your catalogue, or don’t make the minimum payments, the catalogue company will ask you to catch up with the arrears. If you have a debt with a catalogue company, this is a non-priority debt and would be treated the same as other unsecured debts such as credit cards, store cards, loans or overdrafts. If you can’t pay them the account, it will be closed so you can’t buy any more goods. The account will default and impact your credit score, the debt will most likely be passed onto a debt collection agency and the creditor may take eventually pursue court action against you, including pushing for a decree; a CCJ in Scotland. Wage arrestments are more commonly used to enforce unpaid council tax in Scotland, but can be known to be used to enforce some unsecured debts too, including catalogue debts. Lowell Portfolio is an example of a debt purchasing agency that pursue individuals with catalogue debts on behalf of their clients. Nationwide Debt Recovery is another. Unlike car finance, where you could negotiate to hand back the car, with catalogue debts – you can’t give the items back should you fall behind with payments. Paying only the minimum monthly payment to a catalogue debt in Scotland might not cover the interest and repayments. This can cause the catalogue debt to build up and become difficult to manage. You’re also at risk of your account being a ‘persistent debt‘.

Help with catalogue debts in Scotland?

A catalogue debt on its own is usually best managed by contacting the catalogue company and negotiating a repayment plan. If you have been affected by a drop in income due to the Coronavirus, you may be able to request a payment break, giving you time to look at repaying catalogue debts over a longer period of time. But never assume that a payment break will automatically be granted, and interest and charges may not necessarily be frozen. Most catalogue companies should have a dedicated Coronavirus payment break policy. However, If you’re falling behind with multiple payments to catalogue debts and other types of debts such as credit cards, store card and personal loans or if you’re worried about what catalogue debt creditors can do to you, you should get expert debt advice. You can contact us for experienced advice and help finding out what your options are. Trust Deed Scotland® give advice on Trust Deeds, Debt Arrangement Scheme and alternative Scottish debt solutions. Try our online debt repayment calculator, or call us on 0141 221 0999.

Is A DAS Worth It?

Posted on by Craig Stocks
Alongside Is A Trust Deed A Good Idea, many people ask Trust Deed Scotland® the question of Is A DAS worth it? Like Trust Deeds, the Debt Arrangement Scheme has its own advantages and disadvantages. However, it’s not always simply a case of looking at it as a DAS vs Trust Deeds argument as there are other options which may be beneficial for someone in financial difficulties such as Minimal Asset Process; a form of bankruptcy in Scotland aimed at individuals with no or little assets and without an income. Also see Full Administration Sequestration. There still remains the option of clearing debts using a debt consolidation loan, for example, typically secured against a person’s home. In some cases where a debt isn’t yet unmanageable, traditional forms of lending can be used to consolidate debt under a new credit facility. This is typically unlikely if you’ve already been refused credit due to poor or bad credit history, with a history of missed payments and default notices. Quite often an individual may be eligible for a DAS and a Trust Deed and it will come down to the person who has the debt to then make an informed decision on which solution they want to pursue, knowing any the key facts and hopefully, taking that decision after they have been given balanced and qualified advice.

DAS or Trust Deed? What is the best option?

DAS and Trust Deeds are both formal solutions to unaffordable debt, created by the Scottish government and set up and maintained by a licenced professional insolvency practitioner, or money adviser. There are many similarities between the plans, but which one is best for you will depend upon your individual circumstances.

Trust Deeds – How They Work

Trust Deeds are legally binding solutions for people who are struggling with problem debt. Once you’re in a Trust Deed, you will make a single monthly contribution towards your debts, based on what you can afford after essential living costs have been met. At the end of the Trust Deed term, any remaining unaffordable debt will be written off, giving you a fresh financial start.

DAS – How They Work

The Debt Arrangement Scheme is a government scheme designed to help people struggling with unmanageable debt. Under DAS legislation, you will begin a Debt Payment Programme (DPP), tailored to your individual circumstances. In the DPP, you will make a single payment towards your debts each month, based on what you can afford. Any interest, fees, or charges on your debt will be frozen to make clearing your debts easier with the DAS, and you will be afforded legal protection from creditors.

Trust Deeds – Length

Trust Deeds usually last for four years, but can sometimes last for five depending on the specifics of the case.

DAS – Length

The length of your DPP depends upon how much debt you have, and how much you can afford to pay towards it each month. According to research carried out by the governing body, the AiB in 2012, the average length of a DPP is 78 months – 18 months longer than a typical Protected Trust Deed term. An individual’s Debt Payment Programme will not usually last longer than 10 years under the Debt Arrangement Scheme. A Small Business DAS, would not last any longer than 5 years typically.

Trust Deeds – Debt Amount

To be eligible for Trust Deeds you would have £5,000 or more of unaffordable, unsecured debt, owed to at least two creditors. A creditor is anyone you owe money too, in an unsecured arrangement. E.g. credit cards, bank loans and catalogues. You would be resident in Scotland, and be able to afford a monthly contribution towards your debts. The Scottish government reported that in 2019, the average debt amount for Trust Deeds was £15,200 – up slightly from 2018 when it was reported as £14,800. While this is a typical average debt amount for Trust Deeds, bear in mind that Trust Deeds can be used on debts of over £30,000 – it isn’t the only rule that determines your suitability.

DAS – Debt Amount

To be eligible for the DAS, again you must be a resident of Scotland, have one or more debts, and be struggling with your current debt repayments. You would typically have a reasonable amount of disposable income to put towards a DPP. There is no set minimum amount of debt which you need to be eligible for the Debt Arrangement Scheme. The Scottish government reported that in 2019, the average debt amount for DAS was £17,200 – again up slightly from 2018 when it was reported as £16,500. While this is a typical average debt amount for DAS, bear in mind that like Trust Deeds, DAS can also be used on debts of over £30,000 and therefore it isn’t the only rule that determines your suitability here either.

Trust Deeds – Pros and Cons

When you’re weighing up an answer to the question of Is A DAS worth it, the pros and cons of DAS vs Trust Deeds are a great starting point. The important thing to remember is that it will come down to your own circumstances and what’s best for you depending on what you can afford to repay each month, your assets and really what you want to achieve from it at the end, as obvious as that may seem. Whether you qualify for a DAS, a Trust Deed, an alternative, or all of the above; it’s essential that you get balanced debt advice from a qualified debt advisor and that the advice is given to. Trust Deed Scotland® also provide a personalised illustration and our advice team will explain the pros and cons of any solutions and what they mean to you. There are unfortunately some debt advice company firms operating without the correct regulatory approval. Or that may try and force you into a solution without explaining the differences. Trust Deed Scotland® have earned thousands of 5-star reviews, as a result of our ongoing commitments to training and compliance, and a desire to put our clients’ best interests at the forefront of our service.
Trust Deeds – Pros
Once Trust Deeds become protected, your creditors can no longer take legal action against you and this means, as long as you keep up repayments during the Trust Deed, you cannot be Sequestrated (made bankrupt in Scotland). Your lenders are also prevented from contacting you to chase you for payment, putting an end to the hassle of persistent telephone calls and letters from the people you owe money to, which can make having unaffordable debt so stressful. Another strong aspect in the favour of Trust Deeds is that a significant amount of your unaffordable debt is written off, allowing you to become debt-free in a relatively short period of 4 years.
Trust Deeds – Cons
The main disadvantage of a Trust Deed is that it will have a negative impact on your credit score, which can take some time to rebuild. This means accessing further credit once your plan has ended can be challenging. Another disadvantage is that, if you are a homeowner, you may be expected to release equity to put towards the Trust Deed. Although Trust Deeds do allow for some flexibility if you do not keep up with your payments you run the risk of the plan failing, and could face Sequestration (Scottish equivalent of Bankruptcy). Find out more about the advantages and disadvantages of Trust Deeds and how Trust Deeds work.

DAS – Pros and Cons

Now, when considering if a DAS is worth it, or whether a Trust Deed is a good idea, it is necessary to then evaluate the pros and cons of DAS.
Debt Arrangement Scheme – Pros
Like Trust Deeds, the Debt Arrangement Scheme is legally binding, meaning that during your DPP term, creditors can no longer harass you for payment or take legal action against you. You will also make a smaller monthly contribution to your debts, making it easier to meet your essential living costs and pay the bills that matter most. All of your assets including any equity you might have in your home or other property are entirely protected. Lastly, the main advantage which a DPP has over an informal debt management solution is that all interest and charges on your debts are frozen.
Debt Arrangement Scheme – Cons
As with Trust Deeds, and any formal debt solution, entering into a DPP will have a negative impact on your credit rating, making it more difficult to access credit in the future. If you do not keep up with your DPP payments, it could be revoked, leaving your creditors free to take legal action against you and resume charging interest and fees on your debt. Lastly, unlike Trust Deeds, none of your unaffordable debts is written off under the terms of your Debt Payment Programme. This ultimately means that repaying your debts may take longer than in a Trust Deed, and potentially make it a more expensive process. Find out more about the advantages and disadvantages of the Debt Arrangement Scheme.

DAS vs Trust Deeds – Joint or Single Application?

  Trust Deed Scotland® are also asked about the opportunity for two persons to do a joint DAS or a joint Trust Deed. It’s possible for a couple, married or otherwise, to apply for a joint Debt Arrangement Scheme however it’s not strictly possible to have a joint Trust Deed however, it is fairly normal for both parties to have individual Trust Deeds. Aa situation that arises in many residences across Scotland where the household have amassed unaffordable debts. The key is to ensure that you do get the correct debt advice, and you can trust us that we’re in the best position to offer you that advice, as the No.1 rated debt advice company in Scotland; as per our independent Trustpilot debt advice reviews.  

DAS vs Trust Deeds – Where to Get Debt Advice

As a final thought – whether you want to understand whether a Trust Deed is a good idea, or is a DAS worth it; we would always advise that you seek tailored advice which can be tailored to your situation and your circumstances. You can get this advice from a licensed debt charity, or you can get expert advice, right now from Trust Deed Scotland® by calling us on 0141 221 0999. you can contact us, or try out our Debt Repayment Calculator.