Category: Protected Trust Deed

How to Write Off Debt

Posted on by Craig Stocks
Many Trust Deed Scotland® customers who come to us looking for debt advice; often asking for more information on whether they can write off their debts.

Can You Write Off Debt without entering into a debt solution?

In some rare cases, you may find that creditors (the people you owe money to) may be willing to write off some or all of your debt if you can prove that is unaffordable for you and if you also have a terminal illness and your life expectancy is limited for example. Alternatively, it’s a genuine possibility to write off debt after completing select debt solutions. In this article, we will explain the available debt solutions that can allow you to write off debt when you have unaffordable payments.  

Debt Solutions That Write Off Debt in Scotland

The following are debt solutions available to Scottish residents. See below for how to write off debt in the UK.

Protected Trust Deed (PTD)

A Trust Deed is a legally binding agreement where, once completed, any remaining, qualifying and unsecured debts will be written off. A Trust Deed is completed after a typical repayment period of 4 years, with affordable monthly payments being paid towards your debt during this period. Trust Deeds can only be arranged and administered by a licensed Insolvency Practitioner (IP), such as Trust Deed Scotland®, who will take on the role of ‘Trustee’.  

Sequestration / Scottish Bankruptcy

Sequestration is the Scottish legal term for bankruptcy. Sequestration can be an appropriate solution for you if you are struggling with unaffordable debts. Sequestration is also used by creditors who take legal action against individuals for repayment of debts. If creditors have already commenced legal action against you, or you would like to get ahead of your debts now, please don’t hesitate to get debt advice. If you have a low income and have little or no assets, the type of Sequestration you would qualify for is known as the Minimal Asset Process route to Sequestration…

Minimal Assets Process (MAP) Bankruptcy

Minimal Assets Process – or MAP – is a route into Sequestration, for Scottish residents with a low income and few assets. With MAPs, you can write off your unsecured debts after 6 months; provided you have no disposable income, or your income is solely derived from social security benefits.  

Debt Solutions That Write Off Debt in the UK

The following are debt solutions available to residents in England, Wales and Northern Ireland. Once chosen or completed these debt solutions, you will be able to write off remaining debt.

Bankruptcy

Write off unsecured debts if you can show it is unaffordable for you. You may have to sell assets such as a house or car.

Debt Relief Order (DRO)

UK residents must have a few assets to choose this debt solution, and usually opt for a Debt Relief Order when debt levels are relatively low.

Individual Voluntary Arrangement (IVA)

This is a formal agreement for those in England, Wales and Ireland to make affordable monthly payments to your debts. Often, lasting over 5 or 6 years.  

Asking Your Creditors to Write Off Debt

Our customers come to us with unaffordable debt; finding themselves in financial difficulties for a range of reasons. Some reasons can be; If you’re struggling to pay off debts due to challenging circumstances, creditors may agree to write off your debts if:
  • You provide proof of inability to pay
  • You have no assets to sell
  • It clearly isn’t worthwhile for them to keep chasing the debt
However, this is rare, as creditors will only do this for the most serious cases. Before writing off debts, creditors may agree to stop contact for a period of time or agree to help if you have a mental health issue. For help with debts from creditors regarding your mental health, provide proof with a Debt and Mental Health Evidence Form (DMHEF). This must be stamped by a professional such as your GP to be considered complete.  

How Writing Off Debt Affects Your Credit Rating

Entering into any formal debt solution mentioned above will harm your credit score. However, if you are continually missing payments already, your credit score is currently affected. There are many misconceptions about credit scores, so make sure you have all the facts before making a decision. Most importantly, once you have written off debt, you can work on rebuilding your credit score. A bad credit score won’t remain if you take the steps to repair it and follow our tips on improving your credit score. With your debts written off, you will no longer miss payments that are harming your credit currently.  

Tailored Debt Advice

“Can I write off my debt?” – our team of experienced debt advisers are happy to answer. After a discussion about your circumstances, Trust Deed Scotland® debt advisers can provide information of all the solutions available to you. We are one of Scotland’s largest debt solutions providers, specialising in debt solutions such as Protected Trust Deeds, which allow you to write off debt once completed. If you have debts mounting up and are unsure what to do, please reach out. We are here to help. Our team of experienced debt advisers ensure you have all the information to make the right decision for your circumstances and needs. Contact us through WhatsApp Service, or by calling 0141 221 0999. Alternatively, try the Trust Deed Wizard® tool to quickly check your eligibility online.

Can I Arrange My Own Trust Deed?

Posted on by Craig Stocks
No. All Trust Deeds must be arranged and administered by an Insolvency Practitioner. Insolvency Practitioners are highly qualified professionals with an extensive knowledge of insolvency laws and have undertaken a series of exams to become licensed to practice their services. In the context of a Trust Deed, the Insolvency Practitioner will have specific knowledge of insolvency laws in Scotland and performs the role of a Trustee. The Trustee aims to pay your creditors as much as possible of the debt owed to them. This normally involves you making an affordable contribution from your income and may involve some of your assets or property being sold so that the money raised can be paid to your creditors. As part of the supervision process, your Trustee will perform a number of duties including:
  • Ensuring your payments are collected from you on time.
  • Undertaking annual reviews of your finances. Making any adjustments needed to keep it on course. Your annual salary may increase or decrease or there may be bonuses or commissions to be considered.
  • Undertaking an assessment of your assets and arranging the valuation and sale of them if needed – it is common for you to be able to keep your assets but you may need to pay additional sums from your income in lieu of their value.
  • Protecting you from legal action from your creditors and ensuring that creditor contact is reduced.
  • Paying your creditors as funds become available.
  • Finalising the administration and granting your discharge at the end of the Trust Deed period.

Trust Deeds – How do I apply?

The Protected Trust Deed is a legally binding agreement and can help you write off unaffordable debt, significantly reduce the amount that you repay each month and allow you to become debt free after a typical period of 48 months. Like all debt solutions, Trust Deeds have benefits and risks. Before you can commit to the Trust Deed as your chosen solution, you should first speak to an experienced money advisor to find out if you would qualify for a Trust Deed. All possible pros, cons and alternatives should be comprehensively explained to you at this stage. With Trust Deed Scotland®, there are no setup fees for a Trust Deed but if you were to proceed with a Trust Deed, the amount that you repay in fees would be explained to you before you signed. Ultimately, the purpose of a Trust Deed is to help you bring your finances back under control and allow you to free yourself from the burden of unaffordable debt. This will always be the most important aspect of any proposed solution. For balanced, transparent debt advice, you can contact Trust Deed Scotland today on 0141 221 0999. You can use our Trust Deed Wizard® tool to start the process of applying for a Trust Deed online now.

When might a Trust Deed be good for you?

A Trust Deed might be an option for you when you have:
  • Over £5,000 of unsecured debt
  • You have enough money to make a regular contribution towards your debt
  • You are unable to afford your current repayments
Trust Deed considerations
  • Your credit rating will be affected
  • A Trust Deed may not be an option with certain job types
  • If you are a homeowner and have equity in your home this may need to be realised to pay to your creditors
  • Creditors can vote against a Trust Deed becoming ‘Protected’
You can get a more in-depth analysis of the pros and cons of Trust Deeds by calling our team on 0141 221 0999.

What can I arrange for myself?

You can attempt to repay your debts using an informal debt solution such as a Debt Management Plan. With this solution, you will provide your creditors with a list of your income, expenditure and who else you owe money to. You’ll make pro-rata repayment offers and the creditors will decide whether to accept your offers or not. You can often ask a debt charity to help you with this on your behalf. It’s worth noting that if you do self-negotiate new repayment terms with your creditors, your credit rating can also be affected depending on the amount of the proposed repayment. This is due to you defaulting on the original agreement, where the payment amount is less than the contractual amount. Another solution that you can self-administer or ask a debt charity to help you with is a full and final settlement. This is where you have access to a larger sum of funds which can then be used to settle on a percentage of the original debt. In a Full and Final Settlement a creditor agrees:
  • To accept less than the whole amount to clear it (‘full’), and
  • that they won’t take action to recover the rest (‘final’).
This is more likely to an option further down the line when you’ve already defaulted on your original debt and you’ve been since been moved onto debt collection agencies. At Trust Deed Scotland®, we will always have your best interests at heart and therefore we always recommend chatting through your situation with an experienced debt advisor in order to find out what your options are.

Alternatives to a Trust Deed

The Debt Arrangement Scheme (DAS) is a popular alternative solution to the Protected Trust Deed and also requires a qualified money advisor to set up on your behalf.  Our Insolvency Practitioner at Trust Deed Scotland® can also act as your Money Adviser and help you complete an application for DAS. To apply for Bankruptcy, known as Sequestration in Scotland, you will need to seek advice from an Insolvency Practitioner or any qualified Money Adviser from a debt charity, a local CAB or a Money Adviser at your local authority.

Is your home blacklisted if you start a Trust Deed?

Posted on by Craig Stocks
A concern for some of our clients is whether their home is blacklisted if they start a Trust Deed. Only individuals have a credit rating. Your credit rating is personal to you and the property itself is not ‘blacklisted’.
  • As a homeowner, your property is not blacklisted.
  • As a tenant, your landlord’s property is unaffected. This is also true of any housemates that also reside in a property.
  • If you’re married, or in a civil partnership – The other party in the relationship is not affected by your credit.
  • If you live with your parents, they or any other family members are not affected either.
However, if you have joint borrowing, joint accounts, or a guarantor loan for example, in this instance the responsibility to pay the debt falls onto the other party. In which case, if the debt isn’t paid, then that would impact their credit rating. You can find out more about Do Trust Deeds affect a spouse or partner. These myths exist partly because of mistruths online but also because debt collection agencies use this is a threat to demand payment, using any means necessary. When we have unaffordable debts, it’s only natural to worry about how our own finances affect those around us and together with the stigma attached to having debts, this creates a toxic perception of how bad the situation is. The fear of a home being blacklisted as a result of our own actions and our own unpaid debts is enough to deter many individuals in Scotland from seeking help over their debts. If you are putting off getting help because of how you think it may impact those around you then we suggest having a read through our [volume]+ Trustpilot reviews, where many people talk about the same kind of fears and how they found the strength to do something about their debts. As we often say to our clients – If you do something about your debt today, you can stop worrying about it tomorrow. We’ve previously written about your credit score and debunked credit score misconceptions.

Does a Trust Deed affect my Credit Rating?

There’s no getting away from the fact that starting a Trust Deed, a Debt Arrangement Scheme or Sequestration will have a detrimental impact on your credit rating. It will take a while to rebuild your credit rating once the solution has been complete meaning that obtaining credit will become harder, and interest rates will not be favourable. However, with careful planning – many people have gone on to get mortgages after a Trust Deed has ended. A clear signal that a negative credit score can be overcome. When you are researching whether a Trust Deed is a good idea, then a credit rating may be an important factor for you. Where possible you can consider fixing your credit rating without having to consider a formal debt solution. You could consolidate debts using a loan or additional credit facilities. However, we would always advise against about borrowing your way out of debt and would instead suggest that you discuss your circumstances with a qualified debt advisor in order to find out what your options are. Getting yourself further into debt in order to protect the home being blacklisted, while meant with great intentions, isn’t required and will almost always result in a bigger problem with your debt further down the line.

Do I need to tell my landlord about my Trust Deed?

No. your landlord does not need to be informed about your debt repayment arrangements. However, should you wish to take on a new tenancy with a different landlord, a credit search may be undertaken. Firstly, we’d advise you to be upfront about it before you approach the new landlord or letting agency for a new tenancy. Secondly, if you have already been served default notices and missed payments – consider your credit score in this instance. Whether you have unaffordable debts, or not – you should never pay non-priority debts over priority debts such as a mortgage or rent. if you have a good record of never missing a rental payment then you can, of course, use this as proof that you are a reliable tenant.

Getting help with debt in Scotland

You can get debt advice in Scotland today by calling Trust Deed Scotland® on 0141 221 0999. Our qualified debt advisors have been helping people out of debt since 2009 and over twenty thousand people have been able to enjoy a brighter future thanks to the solutions we’ve put in place for them.

Can I get a Trust Deed if I live in England or Abroad?

Posted on by Craig Stocks

The Protected Trust Deed and Debt Arrangement Scheme are two formal debt management solutions available to people who are residents of Scotland.

However, you can still enter into a Trust Deed if you live in any other country of the United Kingdom when you have lived in Scotland at any point in the last 12 months.

This isn’t limited to people currently living inside the UK’s borders. Scottish ex-pats living in the EU and anywhere else in the world can still apply for a Trust Deed as long as they’ve lived here in Scotland at any point in the previous 12 months.

This rule differs from the Debt Arrangement Scheme, which unfortunately is not possible unless you are a current resident of Scotland.

Every week, Trust Deed Scotland® deal with similar enquiries from former Scottish residents now living in countries such as Australia and Canada as well as mainland Europe and in most cases, we can help those individuals deal with their debts at home in Scotland.

I’m originally a Scottish resident living in England. Can I do an IVA rather than a Trust Deed?

If you are a former Scottish resident but now living in England then yes you can enter into an Individual Voluntary Arrangement.

We recently wrote about the differences between IVAs and Trust Deeds and should you be in the unique position where you have lived in Scotland in the last 12 months and eligible for both solutions then there are some key difference between the 2.

Arguably the biggest difference is that a Trust Deed has a typical duration of 48 months compared to the IVA which lasts a typical duration of 60 months. For anyone in this position, you may find this to be a significant point of difference to consider but in reality, apart from this significant point – there are more similarities than differences between a Trust Deed and an IVA.

Applying for a Trust Deed in the EU?

While the on-going saga that is Brexit continues to be negotiated, a Trust Deed is unaffected by any situation that may, or may not be created as a result of Brexit negotiations.

The Trust Deed is an answer to your finances back in Scotland and has absolutely no connection with European legislation.

One difference is the new debts that you may accrue in the new country – if you have credit cards, loans or any other type of unsecured debts then these would not be included in your Trust Deed. It may be possible that an equivalent solution exists in the new country. For example in Germany, you may investigate Schuldnerberatung options.

However, even in English speaking countries such as the United States, Trust Deeds have a completely different meaning for example in the US, a Deed of Trust which relates to Real Estate.

If you do have unaffordable debts in the new country, you should seek local, qualified advice.

Will my debts follow me abroad?

Although your credit history in the UK may not follow you when you move abroad, any debts you owe will remain active. It will be difficult for lenders to take legal action against you if you’re living in a new country outside the United Kingdom, but it is not impossible for them to make an attempt to recoup the debt.

Why do I need to pay my debts off in Scotland if I have emigrated?

While it may seem possible to abandon debt in Scotland when you move abroad, apart from a moral responsibility to deal with the debts then arguable the biggest reason to make sure your debts have been dealt with is in the event that you want to return to the country with a decent credit rating.

Furthermore, while mostly an unlikely outcome, your lender may still employ a tracing agency to locate you in your new country. Though as mentioned above, it would be difficult for them to pursue legal action against you in a country where they have no jurisdiction.

More commonly – you just may find that you are unhappy in the new country for whatever reason. Ill health, redundancy and many other changes in your circumstances may bring you back home quicker than you expected.

Some people who move abroad may use a relative’s address as their UK contact address, and while it’s a myth that an address is blacklisted, rather than an individual – without mail redirection, some may find that final demand letters, calls and doorstep visits are a nuisance to their relatives back home, where their address has been used as the last known address.

If you plan on moving back to Scotland, those debts will still apply and might also lead to a decree being issued awhile you were away or your Sequestration. If you have assets here in Scotland, a debt collector or sheriff officer may try to secure a debt against them on behalf of the lender. If you still work for the same company who are based in Scotland, then a wage arrestment can still be applied for.

Creditors may be able to bankrupt you in the new country. Bankruptcy is recognised across borders in most European countries and many other countries across the world are signed up to international agreements where their courts or insolvency services will cooperate.

At the very least, default notices will be served against you which will result in a significant impact on your future creditworthiness.

Applying for a Scottish Trust Deed

The good news is that you can start your application for a Scottish Trust Deed online abroad, anywhere in the world.

If you’re looking for debt advice regarding your debts at home while you’re living abroad, you can contact Trust Deed Scotland and make us aware of your current location and difference in timezone and we’ll arrange a call back to discuss your debts at home. Or, you can call us on +00441412210999 from abroad.

Can you get a Trust Deed twice?

Posted on by Craig Stocks
The advice on whether you can get a Trust Deed twice varies depending on the reason for you asking the question of can you have 2 Trust Deeds. For example, you may have entered a Trust Deed several years ago, completed your Trust Deed term successfully, rebuilt your credit and then have the misfortune to end up with unaffordable debts for the second time in your life. This isn’t unheard of in Scotland, where we’ve had a series of recessions over the last couple of decades, and of course, people can suffer ill-health or changes to their circumstances more than once in their lives. Or, you have entered into a Trust Deed and for whatever reason, it hasn’t worked out for you and you’ve been discharged, then you may be looking at getting a Trust Deed twice for another reason.

Getting a Trust Deed twice when you’ve already successfully completed a previous one

Legally you are able to apply for a Trust Deed twice without any time limit. Your creditors would still vote on the Trust Deed in the same way as they did on the first arrangement. One advantage perhaps if you’ve been through the process already, is that you’ll have a better understanding of how it works, knowing what happens when a Trust Deed completes. There is still a stigma attached to having personal difficulties that may have stopped you seeking help quicker than you did the first time around, and should you reach the point where you need help again, this may be playing on your mind. We’re all now aware of the lifechanging ‘act of god’ that became the Coronavirus pandemic and as the country recovers, many will need to deal with the impact of debt, irrespective of however they may have been handling their finances previously.

Getting a Trust Deed when your last one failed

The other reason for asking if you can get a Trust Deed twice is when you’re in the situation of already being in an existing Trust Deed that has failed or is failing. In this case, you can enter into a second Trust Deed, but you must have been officially discharged from the first Trust Deed before you enter the second arrangement. Your chances of success on the second Trust Deed depend on factors individual to yourself, including the history of repayment during the first Trust Deed, how much debt was written off at the end, and your current level of debt. If a Trust Deed does break down for whatever reason, it’s important for you and your debt expert to understand all the reasons why your Trust Deed failed. If for example, you are unable to afford the contributions set out originally or felt pressurised to enter a Trust Deed rather than Sequestration or DAS, due to a lack of awareness of other options, or due to the perceived stigma attached to bankruptcy. Trust Deed Scotland® have been advising on Scottish residents on the risks and benefits of the Trust Deed and also the advantages and disadvantages of the Debt Arrangement Scheme and any other solution that you may be eligible for. We’re aware of some organisations who may push individuals into a Trust Deed, sometimes by proposing an unrealistic payment plan. This tactic may benefit the organisation but does nothing for the client’s long-term prospects of a brighter future. Formal debt management solutions, whether formal or not, should ultimately have the exact same objective; to help you manage your debts to the best of your ability and to help you move on with your life.

Can I switch from a Trust Deed to another solution?

You can, only if discharged from your Trust Deed, explore other solutions that you feel may benefit your circumstances better at that point such as Minimal Asset Process bankruptcy. Again, it comes down to what suits you best based on your own personal circumstances and the reasons you’re looking to be discharged from the Trust Deed. It may not be easy to get yourself discharged from a Trust Deed depending on your Trustee’s interpretation – ultimately you’ve made a commitment to resolve your debts using a formal solution, which is unlike a utility bill arrangement for example where you simply just cancel one provider and switch to another. It is in both your own and your Trustees interest to find an amicable solution and should you be worried about your ability to repay your debts then you should speak to your current Trustee as soon as possible, and find out what options they are willing to offer you. This is another reason why it’s best to get qualified debt advice from a leading debt company such as Trust Deed Scotland® where we will always work with you to provide you with balanced, expert advice that results in you understanding the solutions being offered to you and how they will impact your financial future.

Where can I get advice on getting a Trust Deed twice?

Trust Deed Scotland® have been advising Scottish residents on the disadvantages and advantages of Trust Deeds since 2009. In that time, we’ve given over [volume] people a route to a brighter future and gathered over [reviews] five star reviews on the independent reviews platform TrustPilot where we’ve become the number one company in the debt relief service category.

Are Credit Cards included in Scottish Trust Deeds?

Posted on by Craig Stocks
All types of unsecured debts are required to be included within a Scottish Trust Deed and credit cards are the most common type of debt that is included in Trust Deeds and alternatives such as the Debt Arrangement Scheme.

What are Credit Cards?

Credit cards and store cards are both used to purchase goods and services on credit in the same way that a catalogue accrues a debt, or a personal loan, bank overdraft and so on. A debit card is different to a credit card as it relies on finds being active in an account. Credit cards may be issued by your bank or building society, or other financial services provider. A credit facility may be provided by a high street store for example, more commonly referred to a store card.

Are Credit Cards a problem?

We’re a nation of credit card enthusiasts. The Money Charity reported in July 2020 that the average credit card debt per UK household was £2,238 in January 2020. Credit cards are convenient and handy. They’re useful for travelling and in some cases, they do offer greater protection for purchases and reclaiming where a transaction has resulted in a poor buying experience. Chargebacks themselves are really useful. A chargeback is a refund prompted by your card issuer. If you paid for a product or service with a credit card, you can dispute it through the card issuer and let them take the dispute to the merchant. If the issuer succeeds where you failed, the purchase price is refunded to the credit card you charged it on. However, as credit cards become more readily available, and the numbers of people relying on them continue to grow, defaults are becoming more common. Store cards carry with them a different level of threat. The store card may seem like its a loyalty card, being used to open with an immediate discount. However, with little room for competitive rates, the interest rates are often unfavourable, to begin with, and comes with the added temptation in the form of buying there and then, in the store.

How to manage Credit Card debt?

If you have a temporary payment problem, contact the card issuer to discuss this. They may offer some short-term flexibility and with payment breaks being replaced with ‘tailored’ solutions as a result of Coronavirus recommendations made by UK regulators. If you haven’t defaulted on your credit cards and have a great credit rating, you can shop around for other credit cards which allow interest-free balance transfers. Caution should be used when examining the small print. Credit card lending is done based on risk. The more of a risk you are, the worse the interest rate you are likely to achieve as a result. Will you be able to afford new lending terms over the longer term. However, if like many thousands of other households in Scotland, your money issues are more serious, it’s best to get expert debt advice. A qualified money adviser can take a look at your situation, advise you of the options and allow you to make a balanced decision. Solutions for credit card debts in Scotland may include the Scottish Trust Deed, Debt Arrangement Scheme or Sequestration.

What is a Scottish Trust Deed?

The Scottish Trust Deed is more formerly known as a Protected Trust Deed and is used to consolidate debts over a typical period of 48 months. It’s a government legislated debt solution that allows an individual to freeze interest and charges, pay back a more reasonable amount to their debts and protect assets such as a home or car. There are disadvantages too such as an impact on your credit rating. When you have unaffordable debts such as credit card debts, the Scottish Trust Deed solution may work for you.

Alternatives to a Scottish Trust Deed?

The Debt Arrangement Scheme is a solution that also allows you to legally freeze interest and charges, stop creditor harassment over non-payment and gives you a fixed time frame for when you will be able to repay the debt. When evaluating your options – we recommend speaking to a qualified money advisor and that will allow you to receive tailored advice depending on your circumstances. In addition to the Scottish Trust Deed or DAS, you may consider Bankruptcy as a way of managing your debts. Sequestration and Minimal Asset Process are the two forms of bankruptcy that are used in Scotland, and while they may carry the severest of impacts to a credit rating and come with a natural stigma attached to them – They are an effective way of clearing debt.

Help with Credit Card debts in Scotland

We’ve helped over [volume] people in Scotland, became the No.1 rated with more Trustpilot debt advice reviews than anyone else in Scotland. Every week, our experienced debt team give hundreds of people non-judgemental and confidential advice. Call us on 0141 221 0999 or learn more about Trust Deed Scotland today.

Are there age limits for applying for a Trust Deed?

Posted on by Craig Stocks
There is no official upper age limit for applying for a Trust Deed or the Debt Arrangement Scheme. However, there are some important factors that need to be considered as part of the overall qualifying criteria. More older people are finding themselves with unexpected debts than ever before.  As people age, the chances of age-related redundancy, chronic illness and death of a spouse increase, which then can impact their ability to pay off their debts. Furthermore, pensioners are a group that are more likely to keep problem debts to themselves and suffer on alone. Having trouble with debt in retirement is becoming more common, with more retirees struggling to deal with credit cards and other unsecured debts. Research by Key Equity Release found that in January 2020 almost 32% of their clients in Scotland had released equity to pay off credit card debts, personal loan debts and bank overdrafts. While there is no formal age limit for applying for a Trust Deed, a person’s ability to repay the debt needs to be considered. A regular contribution shall be required for a typical period of 48 months therefore, in order to qualify for a Trust Deed, an income such as a private pension may be used to pay monthly contributions. However, in order to be considered for the Debt Arrangement Scheme, a state pension may be included when calculating what your affordability may look like. When it comes to finding debt help in Scotland, you need to review your circumstances and then make a decision based on what works best for you, and based on a reasonable understanding of the options open to you, and how those translate into meaningful outcomes that will help you get your debt back down to an affordable level.

Alternative debt solutions for Pensioners?

For those with a state pension as their only income, then a Minimal Asset Process may be more beneficial – or as mentioned above, the Debt Arrangement Scheme again may be a more viable alternative solution. The truth is that for those looking to understand the age limit for applying for a Trust Deed, the advice remains the same regardless of your age, your debt level, or how much you think you can afford to repay.  In all cases, you should seek expert debt help from a qualified money advisor. As Scotland’s leading Trust Deed company with [reviews] reviews on Trustpilot and by having helped over 25,000 people in Scotland – Trust Deed Scotland® are in a position to give non-judgemental, friendly and confidential advice. Our experienced advisors regularly talk to people from all age groups, and all walks of life on a daily basis.

Ways of increasing your income when retired

You may wish to consider other ways of managing your debts without needing formal debt help in Scotland. Carry on working – if you’re fit and healthy then a part-time job may keep you busy and allow for more money to come in. Downsizing – If you’re in living in a house that has more bedrooms than you require, then this may to create a lump sum and then has an additional benefit of reducing maintenance and heating bills. Check your benefits entitlements – Investigate the benefits that you are receiving and find out what you’re entitled to. In order to receive certain benefits, then you need to claim them.  You may therefore be entitled to extra money without realising it. Check your pensions entitlements – You can consider a pension consolidation service using Zippen. Auto enrolment workplace schemes have been widely publicised and promoted. What is seldom explained is what happens to that pension when we move jobs throughout our careers. Cost and the fear of the unknown may stop many of us from asking the question or seeking advice but with Zippen estimating that throughout our working lives, UK residents may have up to 11 different jobs, which potentially means 11 different pension pots containing income that may had previously been forgotten about.

What’s the minimum age for a Trust Deed?

The minimum age to apply for a Trust Deed is 18. It is typically unlikely that a person would find themselves with so much unaffordable debt in order to qualify for a Trust Deed. Credit agreements legally require an individual to be eighteen plus. The Debt Arrangement Scheme similarly is open to 18-year-olds and above, just like with Trust Deeds, it would be unusual for an individual who is so young, to have built up a significant debt level to qualify. However, with the impact of Coronavirus hitting the 18-24 age group the most across retail, leisure, travel and hospitality sectors, coupled together with a growing irresponsible buy now, pay later lender culture created by the likes of Klarna, there are a growing number of individuals within this age group that do require debt help than there would be under usual conditions. Likewise, with anyone who needs debt advice in Scotland – people find themselves with unaffordable debts for a variety of reasons, and our advisors are never there to judge you. Only to help you by providing debt advice and solutions, tailored to your individual needs.

Applying for Debt Help online

Regardless of your age – if you are experiencing financial difficulties you should look to get help as soon as you possibly can. You can contact Trust Deed Scotland today on 0141 221 0999, or find out more about Trust Deed Scotland and what makes us a good choice when you’re applying for debt help online. Use our Trust Deed Wizard® and get started today.

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.

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.