Category: Debt Advice

Is A Trust Deed A Good Idea?

Posted on by Craig Stocks

Is A Trust Deed A Good Idea?

Trust Deeds help thousands of people in Scotland manage their unaffordable debts and reduce their monthly debt repayments to an amount that they can afford to repay on a regular basis. However, Trust Deeds aren’t a solution suitable for everyone and there are alternative debt management solutions in Scotland that can be just as effective or better. You can read more about how a Trust Deed works and the criteria within that link, or you can apply for a Trust Deed online, right now. The decision to proceed with a Trust Deed is based on you, your affordability and what is best for your long-term financial stability, rather than whether a Trust Deed is a good idea or not. Get in touch with Trust Deed Scotland® today and you’ll receive a personalised illustration.

Affordable Monthly Repayments?

The solution(s) open to you will largely depend on how much debt you have and how much you can afford to repay on a regular basis. If you have already defaulted on debts such as credit cards and loans, you may be familiar with income and expenditure guidelines, or budget sheets sent to you from your creditors. The same guidelines are largely available from debt charities and Money Helper websites. These budget sheets will ask you to write down a list of your income and expenditure details and what you usually spend on priority bills such as mortgage/rent and council tax.  These will also include what you spend on travel expenses per month, clothing and many other expenses Whatever monies are leftover is known as your disposable income. These are the funds that you have leftover to repay your debts. A debt charity service or a company such as Trust Deed Scotland® have the experience of advising on the acceptability criteria for these guidelines for these and can work with you to find out any hidden expenses that you may not take into account, and establish what your true disposable income is. This is important because if you are to enter a Trust Deed, or any other form of debt management solution, you will be making a commitment to repay a regular amount over a number of years. Where you fail to keep up the repayment of your Trust Deed, you could end up with a failed Trust Deed, ultimately leading to you being potentially sequestrated. More importantly for you, you would be no better off than when you first sought advice. This is where the experience and trustworthiness of your debt expert is important. Trust Deed Scotland® have advised over [volume] people since 2009 and have gathered thousands of five-star Trust Deed reviews on TrustPilot. We pride ourselves on our commitment to compliance and training. We genuinely want the best outcome for our clients and always have their best interests at heart.

Alternatives to a Trust Deed?

The Debt Arrangement Scheme is a popular alternative debt solution available to residents of Scotland. It’s a statutory debt repayment plan which also uses legislation to allow you to freeze interest and charges and bring your debts under control. There are advantages to the Debt Arrangement Scheme:
  • Personalised debt repayment plan based on your situation
  • Monthly payments will be based on what you can afford
  • Interest on your debt will be frozen
  • Protection against creditor action.
  • Assets protected meaning you will not be asked to sell your house, or your car.
  • Your Money advisor deals with creditors on your behalf.
There are also disadvantages of the Debt Arrangement Scheme:
  • May last longer than the typical 48 months offered by a Trust Deed.
  • Subject to certain conditions. Includes making all payments towards your Debt Payment Plan and paying your monthly expenditure and bills when they fall due. If you fail to make payments, your plan could be revoked.
  • Unable to obtain credit or use an overdraft while you are in a Debt Payment Plan.
  • Credit rating will be affected.
Depending on the severity of your situation, Sequestration may be the best way for you to resolve your debts. On the other hand, a debt consolidation loan or negotiating debt repayment plans directly with your creditors may also be better for you. Refer to our article regarding is a DAS worth it for further information on this solution.

Advantages of Trust Deeds?

There are many advantages of Trust Deeds, a few of which are:
  • Pay back what you can afford.
  • Your Trustee will deal with creditors on your behalf.
  • You will be protected against creditor action.
  • On the successful conclusion of a Trust Deed, your remaining debt will be written off.
  • If you own assets such as a property, you agree with your Trustee in advance whether the Trust Deed affects them.
  • You may be able to remain as the director of a Limited Company.

Disadvantages of Trust Deeds?

  • Your credit file will be updated to reflect that you have signed a Trust Deed. This information will remain on your credit file for six years.
  • As a result of this, you may find it difficult to get credit for a period after your Trust Deed is finalised.
  • For a Trust Deed to become protected, you must convey all your assets to your Trustee. That includes any property that you own. In certain circumstances, it may be possible to exclude your property, but you need to get clear advice on this when you speak to a debt advisor.
  • As mentioned earlier, failure to keep up with repayment of your Trust Deed could result in you being sequestrated. Therefore, it is important that you re fully aware of the Pros and Cons of a Trust Deed and that the amount you repay is realistic for all parties.

Can You Have 2 Trust Deeds?

If you have already been through the process and came out the other end then yes, you can get a Trust Deed twice. If you’re currently in a Trust Deed with a different company then you may also be able to get a second Trust Deed but there are some conditions attached. You can find out more about the process involved in our article on how to get a Trust Deed twice.

How to Get Trust Deed Advice?

If you really want to know if a Trust Deed is a good idea, seek tailored debt advice today. We’re open from 9am to 8pm during the week, and selectively during the weekends. If you do something about your debt today, you don’t need to worry about it tomorrow. Reputable debt advice companies and debt charities are regulated by governing bodies, this should help ensure that you are not ‘sold’ into a Trust Deed and that you are fully aware of the pros, cons and alternatives. Remember, a Trust Deed may not be for you, but that doesn’t mean that you are beyond help. The sooner that you seek help, the sooner you can begin to understand what options are open to you. You can also learn more a similar question of Is DAS Worth It? which investigates the Debt Arrangement Scheme in a similar fashion to the article above of the merits of whether a Trust Deed is a good idea.

What Happens When A Trust Deed Finishes?

Posted on by Craig Stocks
When your Trust Deed comes to an end, your Trustee will issue what’s known as a ‘letter of discharge’. A copy of the letter of discharge will be sent to Accountant in Bankruptcy (AiB), the regulatory body of Trust Deeds in Scotland and the Register of Insolvencies will record your Trust Deed discharge. If you enter a Trust Deed, typically you’ll finish your repayment in 48 months, as long as you made all payments in your plan. Depending on your circumstances, you may have entered into a Trust Deed for an extended period of 5-6 years. Over the term of your Trust Deed, you’ll have made a number of affordable monthly payments – and this will count as ‘full and final settlement’ of the unaffordable debts included in your Trust Deed. At the end of your Trust Deed term, any unsecured debt that you weren’t able to repay during your Trust Deed will be written off. When you are discharged from a Protected Trust Deed, you will be discharged from any outstanding debts from the people you owe money to (your creditors) that you had included at the date you registered your Trust Deed. This means that your lenders are no longer allowed to pursue money that was owed to them when you signed the Trust Deed. However, some debts won’t be written off such as a student loan, or any court fine.

What Happens With Secured Debts After A Trust Deed?

If you owe money that is secured against an asset such as property or a vehicle, it won’t be included in your Trust Deed. Your secured lenders won’t be consulted on whether they agree to your Trust Deed, and they won’t write off monies that you owe them, whether you complete your Trust Deed term or not. However, the fact that you’re in a Trust Deed should make the secured payments easier to make, as your Trust Deed payments would be calculated not to take up any monies that you need for your typical essentials – not just your rent or mortgage, but utility bills, travel expenses and so on. If you’re a homeowner, you might be required to release some equity from your property, so you can repay your unsecured lenders more of what you owe them before they write off the rest. However, you may find that the impact of your Trust Deed on your credit rating makes it harder to release equity. Mortgage providers can see that you’ve entered a Trust Deed, so you might find that it’s harder to get a new mortgage deal, or that you’re charged a higher rate of interest if you do. If you can’t release any equity then your Trust Deed could be extended by 12 months.

Trust Deed Credit Score And History Impact

Information about Protected Trust Deeds and defaults will remain on someone’s credit reports for up to six years after they occur, so they are likely to remain on someone’s credit history even after they have been discharged from their Protected Trust Deed, which normally lasts for 4 years. If you’ve already defaulted on your credit agreements even before considering a Trust Deed, this too will be logged on your credit score.

How Will A Debt Arrangement Scheme Affect My Credit Rating?

When your Debt Payment Programme (DPP) is approved, you’re placed on the DAS register. This is coordinated and managed by the DAS administrator and is available to credit rating agencies. This register, along with other insolvency registers, is added to other information to your credit report, which calculates your credit score. Just like a Trust Deed, or even a simple default notice, the Debt Arrangement Scheme will affect your credit rating for at least six years. However, this may be extended further depending on how long it takes you to pay off your Debt Arrangement Scheme in total. E.g. if you are on a DPP for under 6 years there is no difference, or if you are going to repay a DPP for longer than 6 years; your debts will not be marked as satisfied until the debt has been repaid at the end of the DPP.

What is a Default Notice?

A default notice is usually sent when you’ve missed or paid less than the full amount for three to six months. The default notice will give you at least two weeks to catch up with any missed payments. If you can do this your account will carry on as normal. If you can’t pay the missed payments in this time your account will default. Default notices only apply to debts which are regulated by the Consumer Credit Act, such as credit cards, payday loans, personal loans and store cards. You’ll know a default notice has been served on you when you receive a letter informing you of a ‘Default notice served under section 87(1) Consumer Credit Act 1974’. The most recent revision of this act was in 1983, long before the evolution of the current Trust Deed legislation and the Debt Arrangement Scheme. As the wording of the default notices is quite old, you may, therefore, be directed towards Trading Standards and/or a solicitor – remember this is somewhat outdated legislation and you are advised to instead contact a qualified debt advisor, or debt charity instead. Unless you can get a default notice removed within 2 weeks, this will be recorded on your credit profile for six years. Depending on your lenders criteria, this may have the same affect as a Trust Deed or a Debt Arrangement Scheme registered against your name.

Can You Rebuild Your Credit After a Trust Deed?

Yes, it is possible to begin to rebuild your credit rating after your Trust Deed has finished. Eventually getting a mortgage after a Protected Trust Deed is achievable. It may not always happen immediately and will require a bit of work – it is certainly possible for most people to successfully be approved for a mortgage after a Trust Deed. Also, it will not be possible to obtain a re-mortgage on a home that is still in the Trust Deed, without the Trustee’s permission, until they have discharged their interest. A Trustee’s interest in a property can continue even after the debtor is discharged. It may be that the lending terms are not as favourable as before, however by showing a commitment by making regular payments to utility bills, and by using credit sensibly, purely for the purpose of rebuilding your credit score, you will in time secure a more favourable lending rate. Paying utility bills by direct debit can help rebuild credit after a Trust Deed and even just joining the electoral roll helps prospective lenders build trust in you.

A Brighter Financial Future

Many people in Scotland have approached Trust Deed Scotland® after they’ve put off seeking help over their unaffordable debts for a number of years. So severe are some people’s financial difficulties, that if minimum payments were made only; it may take them longer than two decades to clear their outstanding debts. If you’re struggling with debts and making minimum payments to debts such as credit cards, you may regard protecting your credit score as being more important to you than dealing with the debts you have. This isn’t uncommon. However, anyone pondering the pros and cons of the impact of entering a formal debt management solution may have on their credit score after a Trust Deed finishes should look towards the long term outlook and whether it’s better to essentially press the restart button, or continue on alone waiting for a solution to present itself in another form.

Want Trust Deed Advice?

If you feel you’re struggling with debt, seek tailored debt advice today. If you do something about your debt today, you don’t need to worry about it tomorrow. As well as Trust Deeds and Debt Arrangement Scheme, there are other alternative Scottish debt solutions. Trust Deed Scotland® are able to offer no-obligation, confidential advice on all debt management methods available in Scotland. Call us on 0141 221 0999 or try our Trust Deed Wizard® tool to get started today.

What Is A Debt Payment Programme in Scotland?

Posted on by Craig Stocks
A Debt Payment Programme in Scotland (DPP) is the term used to describe how much you pay back to your debts each month as part of a Debt Arrangement Scheme (DAS). DAS is a statutory debt management plan, introduced by the Scottish Government in 2004 to help individuals repay their debts in full. If you need a helping hand to get out of debt, DAS could be a suitable option for you. Also referred to as a Debt Payment Plan, a DPP is essentially a financially means-tested method of managing your debts at an affordable level. As well as individuals, the Debt Arrangement Scheme offers self-employed debt help to sole traders, partnerships, certain limited partnerships, trusts,  unincorporated businesses, certain categories of charities and certain corporate bodies are all eligible for the Debt Arrangement Scheme. Only a DAS-approved money advisor can arrange this on your behalf, however once arranged – it offers you a chance to restructure your unaffordable debts at a level that you are comfortable repaying each month. If you believe you fall into the category of a business rather than an individual for DAS you have to seek advice from a qualified insolvency practitioner. Once approved, the DPP offers legal protection against creditor enforcement action and freezes interest and charges. A Debt Payment Programme will protect your home and car. Only available to residents of Scotland, a Debt Arrangement Scheme – is a popular alternative to a Protected Trust Deed and Sequestration. Note, in England, Wales and Northern Ireland – there is no equivalent solution that offers the same statutory legal protection, the nearest equivalent is more widely referred to as a Debt Management Plan. A DMP is a voluntary arrangement between the individual and creditor basis only. When considering the Pros and Cons of a Debt Arrangement Scheme, a qualified debt expert should go over all your income, outgoings, debts and other pertinent information to work out what options are open to you.  

What Debts Can Be Included In My Debt Payment Programme?

  Very similar to the Protected Trust Deed, you can include most types of unsecured debts in your Debt Payment Programme. ✓ Credit Cards ✓ Store Cards ✓ Personal Loans ✓ Bank Overdrafts ✓ Payday Loans ✓ Council Tax Arrears ✓ Utility Bill Arrears ✓ Shopping Catalogues ✓ Credit Unions ✓ HMRC In a Debt Arrangement Scheme, this can further include some secured debts ✓ Mortgage, Rent + Car Finance arrears. Optional – Missed payments only, terms and conditions apply – contact us for details. Debts than cannot be included are typically Student Loans, Court Fines and CSA/Child Maintenance Arrears.  

DPP Proposal

  If DAS is appropriate for your circumstances, the money adviser will calculate an affordable monthly repayment amount and decide how long the plan should last. The adviser then makes a formal proposal to your creditors, who must either accept or reject within 21 days. If the creditors don’t respond to the DPP Proposal, it’s assumed that they agree with the terms. If a creditor doesn’t approve the DPP proposal, the plan can be put through if the money adviser believes it to be fair and reasonable under the terms of the Debt Arrangement Scheme. Once the DPP Proposal has been accepted, the interest and additional charges on your debts will be frozen as long as you abide by the DPP terms.  

Advantages of a DPP

 
  • A DPP lets you repay your unaffordable debts at a more reasonable rate, while still leaving you enough money for living costs and household bills
  • All interest or charges that are being applied to your debts will be frozen at the point when you apply for your DPP
  • Your creditors can’t contact you or take any further legal action against you
  • If your situation changes you can apply to vary your payment or apply for a payment break, although the term of the break will be added to the DPP
  • When your DPP is complete, your unsecured debts will be paid in full
  • Once your DPP becomes approved then by law any earnings arrestments currently in force have to be cancelled. Your continuing money adviser will ensure that this happens for you.
 

Disadvantages of a DPP

 
  • Unlike a Trust Deed which typically lasts a period of 48 months, the DPP lasts until the full debt is written off. Therefore, there is no unaffordable debt written off, other than frozen interest and charges
  • Once you’re on a DPP your details will be put onto the DAS register. This is an online register that your creditors can access
  • A DPP will appear on your credit file for six years
  • If you don’t keep up your payments the DPP could fail, and creditors can add interest charges, or take further action against you
 

How Can I Apply For A DPP?

  You can apply for a Deb Payment Programme under the Debt Arrangement Scheme today with Trust Deed Scotland®. There are no setup fees for a Debt Payment Programme and the cost of administering the DPP are borne by the creditors. More information available here. There are a variety of debt solutions available in Scotland to help deal with your debts. You can find out more about the solutions above or you can visit our debt advice in Scotland page. Give us a call on 01412210999 to find out more.

What Is Sequestration In Scotland?

Posted on by Craig Stocks

What Is Sequestration In Scotland?

Sequestration is a form of bankruptcy in Scotland. It is a formal Scottish insolvency process in which a Trustee takes control of your estate to deal with the people you owe money to on your behalf. Sequestration is often an alternative to a Debt Arrangement Scheme, or a Trust Deed. You may find yourself considering Sequestration because you don’t have enough disposable income to be considered eligible for a Trust Deed. See also Minimal Asset Process. Once you have been Sequestrated, creditors are unable to pursue you or take any legal action against you to recover what they are owed. The Accountant in Bankruptcy may grant you your discharge by the end of the first year. However, depending on your circumstances, you may be required to make a contribution towards your sequestration for four years. Any assets of value, which could include the equity in your home, must be realised. The Insolvency Practitioner will contact your creditors on your behalf, taking away and stress and anxiety caused by creditor contact. If you have any assets, like a house or car, these may be sold to release funds for your Sequestration. Your credit rating may be affected and may affect your ability to obtain credit in the future. Some employers, such as financial institutions, don’t allow people who are bankrupt to work for them and you will no longer be able to act as a director of a limited company. It will state in your employment contract if Sequestration will affect your job or you can ask your HR department. You most likely won’t be able to become a charity trustee. If you are a homeowner and have equity in your property, or you have any other assets of significant value, your Trustee will be required to realise them. However, it may be possible to do so without the need to sell your home. If this is an issue the Trustee may suggest a Protected Trust Deed instead, or Debt Arrangement Scheme if this is affordable. Your Sequestration will be displayed on an online Register of Insolvencies which includes details of all ‘live’ cases plus those that were discharged in the past two years.

How Do I Apply For Sequestration In Scotland?

  Making yourself bankrupt by way of applying for Sequestration is a huge step to take and should only be considered after seeking expert debt advice. 1. Find out whether Sequestration is the right debt solution for you by speaking to one of our expert debt advisors. 2. If Sequestration is the right solution, You’ll need to pay a £200 fee to the Accountant in Bankruptcy (AiB) to apply for sequestration. If it is the Minimal Asset Process that you’re most suited to, the fee for this form of bankruptcy is £90. Call us on 0141 221 0999 for more information on how to apply for sequestration in Scotland. We’ll explain the criteria and the Sequestration pros and cons, as well as alternative debt management solutions.

How Long Does Sequestration Last?

  Your Sequestration is usually discharged after 12 months. However, repayments can last up to 4 years after you’ve been Sequestrated, and the effects on your credit score will last for at least 6 years. The length of Sequestration is a little more complicated than say Trust Deeds or the Debt Arrangement Scheme. If you were to qualify for a Minimal Asset Process, then you will be discharged from MAP sequestration after 6 months. At this point, your unaffordable debts are usually written off. However, if you do not comply, or your circumstances change, the MAP sequestration term may be extended.

What Happens After Sequestration?

  The period of Sequestration lasts 12 months. After this length of time, your Sequestration has ended and what happens next is that your Sequestration is officially been ‘discharged’. This is the most common length of time that a Sequestration lasts. Once you are discharged, your assets are not untouchable, however. New assets that you gain after your sequestration can be claimed by your Trustee for your creditors for up to 36 months after the Sequestration has ended. Life insurance payouts, inheritance for example, or as unlikely as it may seem – lottery wins, may then be claimed by your Trustee for your creditors. It is worth keeping this in mind when you plan your financial future after your Sequestration has ended. Securing a mortgage after Sequestration can be more difficult than with a Debt Arrangement Scheme or Protected Trust Deed, but not impossible. Some lenders specialise in providing mortgages to those who have been discharged from Sequestration. This is also dependent on your spending behaviour and whether it illustrates a responsible and trustworthy spending record. Employment options may be limited after the Sequestration has ended. Before you accept an offer of a new job at a new employer, you may want to check this with the new HR department in order to avoid any unpleasant surprises. It may be that you’re still able to accept a new role after you’ve been Sequestrated, but they may decide to amend or limit your job roles within the business.

Are There Alternatives To Sequestration?

  When you contact Trust Deed Scotland® for help with Sequestration, our expert advisors will ask you some simple fact-finding questions to fully understand your financial circumstances and provide you with a personalised illustration of what options are open to you. We would agree with you on the amount that you can realistically pay towards your unaffordable debts. If Sequestration is not right for you depending on your circumstances, we’ll then advise you on what other options are available to you and you’ll have all the facts you need to make an informed choice about your debt. When you ask for help from Trust Deed Scotland® we’ll always have your best interest at heart and never seek to ‘sell’ you a solution that may not be right for you and your lifestyle. No matter which solution(s) you qualify for, you’ll not need to deal with the conversations you would typically have with your creditors. This will help reduce any stress and anxiety that you may be feeling, or saving you time and hassle at the very least. We understand that opening up and talking about your debt isn’t easy and that is why we offer non-judgemental, friendly and confidential advice. You will be legally protected against creditor enforcement action. Additional interest and charges on your debt will be either frozen or written off. Some of the original debt itself may also be written off, depending on the route that you choose. Above all else, any debt management solution that you apply for will allow you to re-focus on your own life again and all you need to do then is continue making affordable monthly repayments. Give us a call on 0141 221 0999 to find out more, or get started by trying our free online Trust Deed Wizard® tool.

Joint Debts In Scotland

Posted on by Craig Stocks
There are different types of joint debts in Scotland and there is often no one-size-fits-all rule when it comes to credit facilities. From unaffordable loans, credit agreements and bank accounts to mortgages and shared bills such as utility bills – understanding joint debts in Scotland can be quite complex to some. If you’ve been left with joint debts to pay and they’ve become unaffordable, Trust Deed Scotland® can help you with expert debt advice to help you manage the situation and take control of your own financial future. Joint and several liabilities can also apply to other debts, including household bills such as council tax.

If I Marry, Will My Spouse Become Liable For My Debts?

No. You will remain responsible for any unsecured debts that you have taken out in your own name, before during or after marriage. It’s a common assumption that once you join hand-in-hand in marriage or civil partnership, that your debts then becomes a joint debt. This isn’t always true. Unless you signed the agreement together of course.

If I Divorce, Does Liability Become Joint?

You will be responsible to repay 100% of any debts in your own name. If there are any debts that you enter into under a joint arrangement, at that point both parties are equally liable for the full debt amount. This is written into most, if not all, financial agreements and the term is known as ‘joint and several liability’. Where possible, it is always best to come to a fair agreement with the other person in the divorce. Simply ignoring it probably won’t work unless the other person takes full responsibility. However, this is typically unlikely and will inevitably cause more stress in the long term. In practical terms, this isn’t always possible as many relationships tend to end on bad terms.

Debt Collectors Are Chasing Me, What Are My Options?

Trust Deed Scotland advise that f you are being harassed over a debt that was accrued by an ex-partner’s, firstly ask for the original contract. If it doesn’t contain your signature or you don’t recognise the agreement, it may mean you have been a target of fraud by your ex. Either way, it’s a good idea to seek legal advice. If you have correspondence such as emails, text messages, or letters from your ex-partner that admit they owe you money it may be possible to take further action via the small claims court. However, if you do accept that there is a joint liability for the debt, with incontrovertible evidence to that end, you should seek immediate debt advice. Reporting credit fraud against an ex-partner can be difficult to do for several reasons. For example, if this was an abusive relationship, you may worry that reporting your ex-partner to the police could result in repercussions against you. If this is the case in your situation, you can speak to your creditor in confidence, as they may have processes in place to help people deal with debt from relationships that end badly or that have a history of abuse.

What Is Financial Abuse?

Financial abuse is a form of domestic abuse. It is a crime and should be reported to the police. Often the abuse is perpetrated by a partner, but it can also come from other relationships, such as friends, family members and carers. Learn more about protecting yourself against financial abuse. Financial abuse in the home – whether or not it’s accompanied by aggression or physical violence – can leave you feeling isolated, lacking in confidence and trapped. You should know that taking the first steps towards reporting financial abuse against you is incredibly brave. Just like seeking debt advice, it may seem scary but you don’t have to do it alone. Financial Abuse Further Resources: What is Financial Abuse? Women’s Aid Respect – Men’s Advice Line LGBT Anti-Violence Charity

What Happens To Joint Debts When Either Person Dies?

  If you have any joint debts with a spouse or any other party who have died, the debt will become your sole responsibility. This is true if you were a guarantor for a debt owed by the deceased. When someone dies, their debts become a liability on their estate. The executor of the estate, or the administrator if no will has been left, is responsible for paying any outstanding debts from the estate. When the debt is not in joint names, if there is insufficient money or assets in the estate to pay off all the outstanding debts, then the debts would be paid in priority order until the money or assets run out. Any remaining debts are likely to be written off. Surviving relatives will not usually be responsible for paying off any outstanding debts for the deceased unless they acted as a guarantor or it was a joint debt.

Are Guarantor Loans A Good Idea?

In our experience, the answer is usually No. Guarantor loans are risky and you should only ever accept the role of being a guarantor if you feel that you can pay the debt on the borrowersbehalf. If you have been considering applying for a guarantor loan to consolidate your debts. Many loans providers are under increased scrutiny due to irresponsible lending. If you’re struggling with a guarantor loan due to Coronavirus, you may be eligible to apply for a guarantor loan payment break. From borrowers, complaints to the Financial Ombudsman Service have included:
  • I shouldn’t have been given the loan because I couldn’t afford it and the lender should have known this at the time
  • My financial circumstances have changed and I can no longer afford to make the repayments to my loan but the lender isn’t treating me fairly
  •  didn’t apply for the loan
  • The lender won’t let me include this loan in a Trust Deed or Debt Arrangement Scheme
  • I’m having problems with my credit file because of the loan
  • My guarantor has been contacted too quickly
From guarantors, complaints to the Financial Ombudsman Service have included:
  • I didn’t agree to be a guarantor
  • I was pressured or forced into being a guarantor
  • It wasn’t properly explained that being a guarantor meant I had to make the payments if the borrower didn’t
  • The lender should never have accepted me as a guarantor because I couldn’t afford to make the payments
  • The lender should never have given the loan to the borrower in the first place
  • My circumstances have changed and I can no longer afford to make the payments
  • The lender is threatening to take me to court
  • The lender is repeatedly contacting me for payment
 

Do My Credit Card Debts Have Joint Liability?

Credit card agreements always have a primary cardholder who is responsible for repaying all debts that occurred as a result of the use of that card, even if they come from an additional authorised cardholder. Even if the card was used to purchase household items or a car used by the other partner for example; ownership of that debt lies solely with the primary cardholder.

Can I Hide My Debts From My Partner?

It’s actually quite common for people to successfully complete a whole Trust Deed term of 48 months or finish their Debt Arrangement Scheme without ever telling their partner about their debt issues. Although Trust Deed Scotland® would usually advise against hiding debt from your partner for many reasons.

Can We Get A Joint Trust Deed?

  Joint Trust Deeds don’t exist as such, however, both parties can have separate, individual Trust Deeds. Either party is free to have their Trust Deed managed by separate firms, though it could be argued that it is more advantageous to work with the same adviser as you will both most likely share bills and expenses. Trust Deed Scotland® always recommend speaking to an expert debt advisor as they will be able to explain your options and provide you with a personalised illustration based on your own circumstances and then your partners also, depending on the situation presented. When an individual enters a Trust Deed they would typically have £5,000 of unaffordable, unsecured debt. This debt ratio would therefore need to be maintained in order for both parties to be considered for their individual Trust Deed. It may also be an option that you or your partner qualify for a Trust Deed and/or the other qualify instead for a Debt Arrangement Scheme.

Can We Get A Joint Debt Arrangement Scheme?

Yes. If both you and your partner have unaffordable debts, you may apply for a joint Debt Arrangement Scheme, as long as you both have enough qualifying debt and for a joint DPP proposal to proceed, both applicants must consent to the DPP proposal. Couples who have at least one debt for which they are jointly liable may apply for a joint DPP if their relationship falls within the following criteria:
  • Husband and wife or living together as husband and wife
  • Civil partners
  • Living together in a relationship with the characteristics of a husband and wife relationship, except that they are of the same sex.
It may also be an option that you or your partner qualify for a Debt Arrangement Scheme and/or the other qualify instead for a Trust Deed.

When To Seek Debt Advice Over Joint Debts?

If you think you, your partner, or both of you have an unaffordable debt problem – seek qualified expert debt advice today. If you do something about your debt today, you don’t need to worry about it tomorrow. Reputable debt advice companies such as Trust Deed Scotland® and debt charities are regulated, this should help ensure that neither you or your partner are ‘sold’ into a debt solution and that you are both fully aware of the pros, cons, and alternatives. Call us on 0141 221 0999 or try our Trust Deed Wizard® to get started now.

What’s The Minimum Level of Debt For Trust Deeds?

Posted on by Craig Stocks

Do I Need A Minimum Level of Debt to be Considered For A Trust Deed?

As with all debt solutions in Scotland, Trust Deeds are specific to your individual circumstances. Typically, you would have a minimum level of debt over £5,000 to qualify for this debt solution. In 2019, with over 10,000 Protected Trust Deeds, the average total debt owed to creditors was £14,900*. However, there are many considerations selecting the correct solution for you, that’s why we need you to contact us for more information – to establish the facts and then provide you with a personalised illustration of all the options open to you. Ultimately, all debt advice is tailored to you, and any company that has your best interests at heart wouldn’t try and ‘sell’ you into a solution that is not fit-for-purpose. Trust Deeds have helped thousands of people look forward to a brighter future; however, in order for the Trust Deed to be successful for you, you would need to have an income that allows a regular repayment over that time. The more important question is not such do I need a minimum level of debt to be considered for a Trust Deed, but can I afford to make regular payments to my Trust Deed and is the Trust Deed the best solution for you, depending on your circumstances. If not, there are alternatives to a Trust Deed. Trust Deeds are only available to Scottish residents and you must have lived in Scotland for at least six months before you apply. If you are based in England or Wales, then debt solutions such as an Individual Voluntary Arrangement may be a suitable alternative for you.

Who qualifies for a Trust Deed?

To qualify for a Trust Deed you would usually:
  • Have at least one debt
  • Have over £5,000 of debt
  • Be resident in Scotland
  • Be able to repay your debt(s) after you’ve paid your living expenses
  • Have an income
Find out more about Trust Deed Pros and Cons. There is no maximum level of debt as such, however, affordability and being able to repay a contribution is important.

Do I Need A Minimum Level of Debt to be Considered For A Debt Arrangement Scheme?

There is no set minimum level of debt required to be considered, however, Trust Deed Scotland typically suggests that the Debt Arrangement Scheme may an option if you have over £3,000 of unsecured debt. Debt Arrangement Scheme is designed to help individuals, couples, and businesses repay their unaffordable debts. It also helps creditors recover debts they are due. To be eligible for DAS, a debtor must have one or more debts and:
  • Be a resident of Scotland
  • Have sought the advice and assistance of a DAS-approved money adviser
  • Want to repay their debt without the threat of creditors taking legal action against them
  • Have a reasonable level of disposable income after meeting their basic needs

Joint Debt Arrangement Scheme

Couples who are each liable for a debt which may be included in a debt payment plan. You may apply for a joint debt payment programme if you are:
  • Spouses or civil partners of each other
  • Living together as spouses or civil partners of each other
  • Both applicants must consent to the proposal

Business Debt Arrangement Scheme

Self-employed individuals, partnerships, trusts or unincorporated bodies can also seek to repay their debts over a period of time, up to a maximum of five years, through DAS. Businesses excluded from the Debt Arrangement Scheme are:
  • Limited or public companies
  • Not formed under Scots law
  • Those established or carrying on business outside of Scotland
Find out more about the Debt Arrangement Scheme Pros and Cons.

Do I Need A Minimum Level of Debt to be Sequestrated?

To qualify for Minimal Asset Process, your debts would be more than £1,500 but less than £17,000. In order to apply instead for Sequestration, your debts total more than £3,000. It will cost you £200 to apply for Sequestration via the full administration route or £90 if applying via the Minimal Asset Process route. There are no waivers or exemptions for this fee and it is non-refundable. Payment can be made by cash, cheque, debit card, or postal order. There is also an option to pay online. Find out more about the advantages and disadvantages of Sequestration.

Where Can I Get Online Debt Help In Scotland?

  You can get online debt help today with Trust Deed Scotland®. There are a variety of debt solutions available in Scotland to help deal with your debts, regardless of the minimum or maximum amount of debt that you owe. You can find out more about the solutions by visiting our online debt advice page Or, if you would prefer to speak a Scottish debt solutions specialist, you can give us a call on 0141 221 0999 to find out more. Any advice offered is tailored, balanced, and non-judgemental. *Information provided by the Scottish government

What Is Wage Arrestment In Scotland?

Posted on by Craig Stocks

What Is Earnings Wage Arrestment In Scotland?

Wage Arrestment in Scotland is increasingly being used as a tactic to recover debts in Scotland, with unpaid council tax arrears debt being the most common cause of a debt being enforced by way of an attachment of earnings. With the Earnings Arrestment enforcement action type, your employer is instructed by law to deduct money directly from your wages. As part of the ‘diligence’ process – A legal process that allows creditors to collect monies where a court order has been unsuccessful in forcing you to pay. Before a Wage Arrestment can be put in place, you will either have had a decree awarded against you or will have received a summary warrant for the debt you owe. Once an Attachment of Earnings is secured, your employer must deduct an amount from your net earnings over time you get paid. If it’s a council tax debt, his Wage Arrestment deduction will then be passed on to your local authority council to pay off your council tax debt. Although most commonly used for council tax debt, wage arrestment can be used for other debts as well. It is not necessary for the creditor to raise a court action before they serve a Charge for Payment. This is a more typical route for debts that are not regulated by the Consumer Credit Act (such as credit cards and personal loans) using the procedure known as summary diligence. A Wage Arrestment is used to collect a single debt owed to one creditor. Current maintenance arrestment is used to enforce the payment of maintenance, such as that awarded by a court during a divorce settlement.

Multiple Wage Arrestments

A Conjoined Arrestment Order is granted by the court to enforce payment of two or more of the same type of debts. The important thing to remember is that a conjoined arrestment can be used for two or more wage arrestments that are in place at the same time but not for an earnings arrestment and current maintenance arrestment. Technically, it’s possible for the local authority to issue you with an Earnings Arrestment for every year of outstanding debt as they are counted as separate debts. However, the amount taken each month would not increase, but would instead be divided on a pro-rata basis between all debts they are chasing you for. Most Scottish councils tend to do it for one year, and when that debt is paid do it again for the next year. They would normally collect the earlier years first. It may be worthwhile double-checking that the arrestment is legal and that the money is owed. If the creditor has not issued a Debt Advice and Information Pack (DAIP) then the procedures have not been followed correctly and you can argue that the Wage Arrestment is not legal. If you decide to pursue this, seek advice first.

Typical Wage Arrestment Example

The usual process prior to getting a wage arrestment for Council Tax debt typically follows this path:

Reminder

The normal method for paying council tax is in 10 monthly instalments. If you miss a payment, the council should send you a reminder giving you seven days to pay the outstanding amount.

Final Notice

If you fail to pay the missing instalment after a reminder, however, you will lose your right to pay by instalments. At this stage, you will receive a final notice giving you 14 days to pay the whole amount outstanding for the remainder of the financial year. It is still possible with some local authorities in Scotland at this stage to negotiate to pay in instalments if you contact them directly. If you are at this stage, it’s important to act as soon as possible. Your council tax should be treated as a priority debt, alongside other utilities and your mortgage/rent so make sure you do not pay unsecured debts such as credit cards and personal loans ahead of any priority debts. No matter what the credit card lender says, they are always a lesser priority debt to pay but that doesn’t mean you should ignore these debts either. Firstly, try to make reasonable arrangements to pay, Second, if that fails, or you feel your debts are more severe, contact a qualified debt advisor ASAP.

Summary Warrant

If this lump sum is not paid then the council can apply to the sheriff court for a summary warrant. This is a certificate from the sheriff court stating the amount of council tax you owe. You will not have the opportunity to negotiate with the court before one is granted. You will only know about it the summary warrant when you receive notification of it in the post. You do not have to be told that the council is applying for a summary warrant. The summary warrant is issued by Sheriff Officers in Scotland. It will state the amount due and who to contact to arrange to pay this amount. Your payments are no longer made to the local authority but then instead, to the Sheriff Officers. The amount due will have increased as there is an automatic penalty fine of 10% when a summary warrant is issued.

Arranging Repayments

At this stage, you can arrange to repay the money at a rate that is comfortable for you. If you decide to do so make sure you come to an arrangement that you will be able to stick to. Remember, priority bills are more important than non-priority bills e.g. credit card debts. It is better to pay less regularly over a longer period of time than to try to stretch yourself and risk missing payments.

Charge For Payment

A Charge for Payment is a legal document that is served in Scotland by Sheriff Officers and Messenger at Arms. They are served to formally demand payment of money and give only 14 days to make payment. If the Charge for Payment is not complied with there are severe consequences. An earning arrestment as discussed, or bank account arrestment. Or an attachment of property held on your home or other assets such as a vehicle. The most common property to be attached by Sheriff Officers are cars, however, they can attach most items that are kept outside the home or business property. Even if it is kept in business premises, garden shed. A Charge for Payment doesn’t need to be served to execute an inhibition. An Inhibition in Scotland is another form of diligence, which makes it a formal, legal debt recovery tool. It allows a creditor to stop you from selling your home, or re-mortgaging without paying them. It doesn’t give them the right to force the sale of your home. This is the typical process that local authorities will pursue to enforce their outstanding Council Tax debt, but remember this can be used for other types of debts. Parking fines are another example of a creditor that uses this enforcement type. A Charge for Payment can quickly escalate e.g. an unpaid bus lane contravention fine debt can go from a manageable £90 to almost double with a fee of £81.16 added; the same debt then becomes £171.16. This fee cannot be removed thereafter.

How Much Of My Wages Can Be Arrested?

There are rules about how much money can be taken from your wages in Scotland, and also procedures in place to govern what happens if more than one creditor tries to arrest your wages. The earning arrestment amount taken from your wages depends on how much you earn. In April 2019, the protected minimum balance increased from £494.01 to £529.90. The exact amount that will be reduced from your debt can be found here. Any payments for commission, bonuses or statutory sick pay will be considered as part of your wages.

How Will My Employer React To My Wage Arrestment?

It is your employer’s legal duty to deduct whatever the courts insist on from your wages. If an employer fails to arrest your wages once lawfully instructed by a Sheriff Officer, they can be held liable to the creditor for the amount that they should have taken off your wages. Furthermore, they too can then be taken to court themselves and ordered to pay the amount they should have or become subject to the Sheriff Officers themselves. For this reason, employers must arrest your wages when told to do so. Your employer can also deduct a £1.00 administration fee every time the money is taken from your salary. Wage arrestment can be uncomfortable for you at work but it is not likely to be more than that, other than an increased administrative burden for your payroll team. However, you may, as a condition of your employment, have a clause in your contract that states that wages arrestment is a matter for which you should be disciplined. This may more likely be the case if, for example, you work in the financial sector. An Earnings Arrestment Order may be considered a disciplinary matter by some employers. In some situations, you can apply to the court for a Suspended Attachment of Earnings Order. If you can supply valid reasons why the wage arrestment should be suspended, you may be able to prevent it. One such reason to apply to the court for a Suspended Attachment of Earnings Order may be dismissal or disciplinary proceedings at work. Any responsibly structured organisation would typically only declare a Wage Arrestment on a need-to-know basis; therefore it’s reasonable to assume that such knowledge within a workplace will not become part of the workplace gossip.

What Happens If I Change Jobs?

If you change your job during the Earning Arrestment, then your Wage Arrestment will stop, due to having no earnings for that employer to deduct your wages from. It is your duty to ensure that you inform the Sheriff Officers of your change in employment. However, your previous employer can be instructed to supply details of your new employment to the sheriff officers where it is known. Most-likely because you had to give them as an employment reference. The Earning Arrestment, therefore, will most likely follow you.

Can My Benefits Become Arrested?

No, if you are in receipt of Universal Credit or any other benefits, a Wage Arrestment cannot be collected from your benefits payment.

How To Prevent A Wage Arrestment Charge For Payment?

A Statutory Moratorium can be registered with the Accountant in Bankruptcy office. Typically this is accepted, provided that one has not already been registered within the last 12 months; This prevents creditors from taking any further enforcement action for a period of six weeks. This is a free application process and can be done relatively quickly. Statutory moratoriums’, however, only allow some breathing space and it is important that the applicant looks to find more long-term debt solutions, including formal debt solutions such as Trust Deeds, Debt Arrangement Scheme or payment in full of the original debt. Assuming of course, that you haven’t found some other means to repay the debt naturally. Remember too that debt collection agencies can use suggestive words in their telephone conversations, or send letters that imply that a Wage Arrestment and/or other enforcement action is imminent against you but it may be a threat at that stage. It is advisable that you seek advice first from an experienced debt adviser, as to be most effective the procedure should only be used when it is absolutely necessary.

How To Stop A Wage Arrestment Charge For Payment?

A Statutory Moratorium should be used, even after a Charge for Payment has been served and has expired. Again, this allows six months breathing space to allow you to pursue a more permanent solution. Whether that be looking at long-term debt management tools such as Trust Deeds, Debt Arrangement Scheme or where possible, payment in full of the original debt upon securing extra funds. Alternatively, even after a court order has been awarded, or a summary warrant granted, you can apply for a Time to Pay Order. A Time to Pay Order allows you to enter an instalment plan with the lender, or local authority where it’s outstanding Council Tax Arrears and providing it is maintained, will prevent a Charge for Payment being relied upon for any further action. If you want to prevent or stop a Wage Arrestment Charge for Payment, get in touch with a qualified money advisor today.

Wage Arrestment Debt Advice

If you’re worried about debts, worried about the threat of having a wage arrestment, have received a decision or decree, or had court action taken against you we’d recommend getting tailored debt advice from us, as this can help you make an informed decision on the best way of dealing with the wage arrestment either before it happens, or after it has been put in place. Our experienced Scottish debt help team at Trust Deed Scotland® specialise in giving debt advice to people living in Scotland. We can talk about your situation and help you find a solution to resolve your debt problem. We’ve helped over [volume] people get out of debt in Scotland, and we’ve got more five-star reviews than any all other Trust Deed providers combined. Call us on 0141 221 0999, or try our Trust Deed Wizard® to get started now.

Best Bank Accounts For Trust Deeds

Posted on by Craig Stocks
You can operate a normal, basic bank account during a Trust Deed or DAS in Scotland – Entering into an arrangement doesn’t stop you from having a basic account. However when you’re exploring options for the best bank account to have while in a Trust Deed or DAS there are some considerations. You may need to switch to a new bank account before the Trust Deeds starts. The two main reasons for needing to switch bank account:

Frozen Bank Accounts & Bank Account Closures

Some banks may choose to freeze your bank account if you enter into a Protected Trust Deed or Debt Arrangement Scheme. Banks monitor insolvency registers. However, your bank account is more likely to be frozen if you owe the same bank money, and in that case – a tactic known as ‘setting off’ is more likely to be used.

Setting-Off

The term ‘Set-off’ describes a bank taking money from one account to repay another. They do not need to seek permission fro you to do this. This is a commonly used tactic where you had a credit card or personal loan with the same company that you have your current account with. You may, or may not also have an overdraft facility with that company; expect that to be removed also. You can avoid set-off by moving your current account to a bank that you do not owe money to. A frozen bank account will leave you unable to pay your household bills and other priority bills so it is therefore important that you seek advice on this.

What Do I Need To Open A Basic Bank Account?

You’ll normally need proof of identification and proof of your address in order to open a new bank account when entering a Trust Deed. Proof of identification includes:
  • A passport
  • A photocard driving licence
  • A letter confirming your benefit entitlement
  • HMRC tax notification letter
You can then use one of the following documents for proof of your address:
  • A driving licence (either new or old)
  • Your TV licence
  • A recent electricity or gas bill
  • A recent council tax bill
  • A recent letter about your benefits
  • A recent letter or statement from another bank
If you don’t have a passport or photocard driving licence you may need to ask the bank what types of ID that they’ll accept before you try and open an account with them.

What If The Bank Won’t Let Me Open An Account?

Banks can’t use your credit rating as a reason not to give you a basic bank account. However, they don’t have a legal obligation to provide you with one either. They’ll normally prevent you from having a bank account if you’re an undischarged bankrupt. I.e. you’ve only just Sequestrated yourself. Or if there’s any record of fraud on your credit file. If you’ve applied for an account and a bank has turned you down, you need to make sure that they were assessing you for a basic account rather than a current account. However, as a leading provider of debt advice in Scotland, fortunately – Trust Deed Scotland has experience of this and we can, therefore, recommend the best banks to open an account with prior to entering a Trust Deed.

Recommended Best Banks In A Trust Deed

Before committing to a Trust Deed, a personalised illustration should be carried out to find out who you owe monies to and any potential solutions that you may qualify for. Our current list of recommended banks for individuals entering Trust Deeds are as follows: Many people we’ve spoken to  ask us which is the best bank account for bad credit and its more important that you ensure that it’s a basic bank account rather than a current bank account. Whether you have a good, or poor credit rating is not as important when seeking a bank account that you can use in a Trust Deed. There are also some lenders who specifically advertise bad credit bank accounts and these usually come with a chargeable amount. Therefore, if you decide to open up a new bank account, it is recommended that you consult with an expert debt advisor beforehand, in order to get a better understanding of your options.

Joint Bank Accounts In A Trust Deed

You can continue to use a joint bank account during your proposed debt solution. However, there will be a financially associated link, so this is perhaps best avoided if the other person has a good credit rating.

Dealing With Bank Account Issues While In Debt

If you have debt with your bank or you’ve had money taken from your account to cover a debt, let us know and we’ll help you to find out what your options are. You can try our Trust Deed Wizard tool to get started, or give us a call on 0141 221 0999. We’re here to help and will always have your best interests at heart.

Differences Between IVAs And Trust Deeds

Posted on by Craig Stocks

What is the Scottish version of an IVA?

An IVA in Scotland (Individual Voluntary Arrangement) is better identified as the equivalent Protected Trust Deed formal debt solution. If you are a resident in Scotland the Protected Trust Deed is a solution that could help you write off unaffordable debt and enjoy a brighter future.

What’s the Difference Between an IVA and a Trust Deed?

The main differences between an IVA and Trust Deed are that the Individual Voluntary Arrangement is an English, Northern Irish and Welsh formal debt solution. A Trust Deed is a formal debt solution for Scottish residents only. An IVA can only be applied for by English, Northern Irish and Welsh residents. Therefore Trust Deeds are only available for Scottish Residents (or have lived in Scotland in the last 12 months). In an IVA you must have minimum unsecured debts of £6,000* whereas in a Trust Deed the minimum total debt level of over £5,000. The duration of the debt management process is different in that an IVA typically lasts for 60 months whereas a Trust Deed typically lasts for 48 months. In order to qualify for a Trust Deed – you must live in Scotland or have lived in Scotland in the last 12 months. You may also qualify if you have a place of business in Scotland. It isn’t unusual for a person living and working in England, Wales or Northern Ireland to enter a Trust Deed, or complete their Trust Deed term while resident in one of these countries as long as they met the above criteria regarding residency in Scotland. Likewise, It’s not unheard of for British ex-pats to move abroad while in an IVA or Trust Deed and continue with their repayments while living there – it’s fairly normal for people from Scotland to continue with their Trust Deed while living in another country of the United Kingdom, or any country overseas. Sometimes you may read about a Scottish IVA online, or you may have received an email, or seen an ad on social media talking about individual voluntary arrangements, that invited you to apply for an IVA. This is often an oversight from organisations based in England. Occasionally companies that are based Overseas, or in England acquire ‘UK data’ to cold-call by salespeople who are not qualified to give advice which further adds to the confusion. Trust Deed Scotland® have helped over [volume] and specialises in Scottish debt solutions and our experienced debt advisers are experienced in advising on not only Trust Deeds but other Scottish debt solutions which include the Debt Arrangement Scheme. There are other subtle differences between IVAs and Trust Deeds and there are other differences in what’s known as a Debt Relief Order for example, with our Scottish equivalent’ known as the Minimal Asset Process.

What are the similarities between an IVA and a Trust Deed?

Whilst there are differences between an Individual Voluntary Arrangement and Protected Trust Deed, there are also many similarities between an IVA and a Trust Deed. Most importantly, both solutions exist to help people in the UK reduce their debts down to an affordable level, and take back control of their personal finances.
    • You should owe money to two or more creditors
 
    • Your contributions are based on your ability to pay and you need to have a monthly income
 
    • Only unsecured debts can be part of the agreement
 
    • Interest and charges on all included debts are typically frozen
 
    • Any unpaid debts at the end of the arrangement term are written off, allowing you to look forward to a brighter future
 
    • Both IVAs and Trust Deeds are a good alternative to Bankruptcy / sequestration
 
    • Neither An IVA or a Trust Deed impact on your ability to hold public office or be a company director
 
    • All windfalls including inheritances, bonuses, and lottery wins in excess of £500 must be declared
 
    • IVAs and Trust Deeds are recorded on the Gazette register
 
    • Your credit record will be affected by your IVA or Trust Deed and they will appear on your credit file
Both solutions offer Self-Employment help to individuals with debt.

London, Belfast and Edinburgh Gazettes

Creditors can access details of your insolvency through the equivalent regional Gazette. Details of your IVA or Trust Deed won’t be published in a local or national newspaper but creditors can access your information through this route. This means it’s unlikely that your friends, family or neighbours would find out about your finances in this way. The exception to this would be if there has been a high level of public concern or complaint about your financial conduct. An IVA is listed in the London or Belfast Gazette and the Trust Deed is listed in the Edinburgh Gazette. In Wales, there is no Cardiff Gazette, so therefore these are listed in the London Gazette.

How to Apply for a Trust Deed Today

When considering whether to apply for a Trust Deed or any other type of debt solution, It’s only natural for people to ask questions like Is a Trust Deed worth it Is a Trust Deed a good idea Debt Arrangement Scheme vs. Trust Deeds You may have already spent countless hours researching debt solution options, or you may not have had the confidence to explore any options yet as for many people, taking the first step of asking for help can be too difficult to overcome. In any situation where you are faced with unaffordable debts, we always advise that you seek tailored debt advice and at Trust Deed Scotland – we always have your best interest at heart. After speaking to our debt advisers – we’ll provide you with a personalised illustration of all options open to you and their advantages and disadvantages. Our highly-experienced debt advisers offer non-judgemental, balanced advice. They’ll help you to understand that it’s not necessarily a one-size-fits-all solution that suits your needs, but that the way out of financial difficulties for you depends on what best suits your needs and affordability. Call us today on 0141 221 0999 or apply for a Trust Deed today by using our Wizard tool. *To qualify for an IVA officially, there is no minimum debt level. The reason why £6,000 is given here as a guideline is that this is the most common amount that Insolvency Practitioners will work with when checking to see if a customer can qualify for an IVA. You may find when you have spoken to an Insolvency Practitioner that if your unaffordable debt level falls below £6,000 that they will decide on a case by case basis as to whether they will put your IVA application forward, dependent on the amount that you can afford to repay and the amount of work involved for them.

Mental Health Awareness Week And Debt

Posted on by Craig Stocks
Debt causes mental illness and mental illness causes debt. It’s Mental Health Awareness Week and these two issues are intertwined. And yet, both issues still have a stigma attached. As well as the obvious financial impact of debt, there is also an emotional impact of having unaffordable debt – including depression, denial, stress, and fear. There is often a disappointing misconception that people find themselves in debt due to living an excessive lifestyle or overindulging with credit cards and store cards. This couldn’t be any further from the truth. Unemployment, a change in circumstances such as a new baby being welcomed into the family, and redundancy are actually three of the most common triggers for debt problems. And it can happen to anyone, no matter what their attitude to money may have been in the past. Much of debt-related depression and anxiety can be due to a lack of support from creditors and from the individual’s surrounding family, friends and employers. Because of the stigma attached to having debt, many people avoid telling family and friends about their situation. Debt can be a considerable burden, made worse by dealing with it alone. Another issue of debt anxiety is the lack of sleep it can often cause. During this time of uncertainty, these stresses can begin to feel overwhelming, and even before the spread of Coronavirus, research showed that almost 20% of people with a mental health issue also have problem debt. Mark Rowland, Chief Executive of the Mental Health Foundation, said: “Now more than ever, we need to re-discover kindness in our daily lives. “We want to use Mental Health Awareness Week to celebrate the thousands of acts of kindness that are so important to our mental health. And we want to start a discussion on the kind of society we want to shape as we emerge from this pandemic. Kindness unlocks our shared humanity and is central for our mental health. It has the potential to bring us together with benefits for everyone, particularly at times of great stress. One thing we have seen all over the world is that kindness is prevailing in uncertain times, helping people to connect and communities to cope with the impact of the Coronavirus pandemic.” Earlier this month, the Mental Health Foundation also reported that 33% of Scottish adults in full-time work are worried about losing their jobs. A similar percentage reported that they are worried about their finances, such as bill payments and debt. Having enough money to pay all our bills allows us to provide for our families, plan for the future, and enjoy life. And stress caused by debt may be hard to define, but it manifests itself in obvious ways – lack of sleep, loss of focus, nagging worry, and relationship breakdowns. Questions to ask yourself if you think you may have a debt problem
  • Do I feel anxious when thinking about how I will manage my repayments?
  • Do I avoid checking how much I owe my lenders?
  • Do I routinely miss the minimum payments towards utility bills, credit cards or rent?
  • Do I avoid telephone calls from unknown numbers?
  • Do I leave bills unopened, or stuff them in a drawer?
  • Am I unable to set aside money for a sudden and unexpected reduction in my income such as redundancy, vet bills or emergency car repairs?
If you answered yes to any of these questions, then you may want to consider getting debt advice.

Mental Health Awareness Week Scotland

Trust Deed Scotland® is the leading debt advice company in Scotland and has pledged to support Mental Health Awareness Week by providing guidance and support to anyone who is struggling with their debts during the campaign week and then throughout the rest of the Coronavirus pandemic and beyond. A spokesman advised “Mental Health Awareness Week is an important week in the calendar for all debt advisors as the publicity that it generates can help give some individuals the confidence to seek help with their financial difficulties. The emotional impact of debt – Depression, denial, stress and fear can sometimes be understated.” Trust Deed Scotland® have advised over [volume] to create a clear plan to get their finances back on track and specialise in Scottish debt help solutions and our experts debt advisors are experienced in advising on not only Trust Deeds but other Scottish debt solutions which include the Debt Arrangement Scheme.