Category: Money Advice

Why do I need to speak to someone?

Posted on by Craig Stocks
Asking for help with your debt is a big step, one which Trust Deed Scotland® fully understands. Our goal is clear: to provide tailored debt help in Scotland and/or advice to people across the country, setting up debt solutions where applicable. We appreciate that talking openly about our debts isn’t easy but by starting the conversation surrounding it we can help break down barriers to support. However – while we do encourage advice by walk-in appointment, email, text message or WhatsApp, we tend to recommend that in the first instance; a telephone call is best for you. The advice will always be tailored to the individual and all benefits and risks need to be comprehensively explained. Most of the time, this is easier explained by telephone call. When you need help with debts, you should be able to make an informed decision based on balanced advice, that puts you in control of that decision-making process. That decision should be made in your time, at your own pace. We fully respect and encourage this at all times.

About our Trust Deed Scotland® advice team

We truly understand how difficult it can be to ask for help by telephone. You may fear that the people you are speaking to will be shocked, will disapprove or judge you. On top of that, there is a stigma surrounding debt and many people have feelings of shame and embarrassment. Debt doesn’t discriminate and neither do we. Debt is something that affects people from all walks of life and we believe that everyone should have access to confidential debt advice and work hard to make sure this is readily available. There are many reasons why people end up with unaffordable debt and despite what you may feel yourself, we can reassure you that it’s not your fault. No matter what’s happened in your past, what is more, important now, is what you do about it going forward. As we regularly say, if you do something about your debt today, you can stop worrying about it tomorrow. Our dedicated in-house advice team receive regular debt advice reviews where they are regularly described by our customers in their own words as being:
  • Friendly
  • Non-judgemental
  • Empathetic
  • Experienced
In order to proceed with your enquiry, we typically need to have an initial phone call with you which would last 30 minutes on average. Thereafter, any communication can be done via email, in-person, SMS or via our Trust Deed Scotland WhatsApp service. Once we’ve had that conversation with you, at the very least you’ll have a better understanding of what a brighter future could look like. We understand that anxiety may be a factor in why you find it difficult to talk about your debt by telephone.  As an alternative solution, we can offer a face-to-face meeting at our Glasgow office (lockdown measures dependent) if this is an option for you. We also suggest that you can arrange for a friend or relative to join you on the call for emotional support. Our Trustpilot reviews are a good place to read about how we’ve helped many other people in the same position as you. In their own words, our existing customers often say that our advisers are friendly and non-judgemental. If you prefer, you can call us on 0141 221 0999 anytime you feel able to.

Anxiety help resources

You can get more help with anxiety by using the Anxiety self-help guide provided by NHS Inform. Anxiety UK is a UK charity and their helpline is 03444 775 774. SAMH are a Scottish mental health charity that can help with anxiety issues, and a downloadable anxiety and panic attack guide is available on their website. You may find our own Signposted Support services to be useful too as we provide information on where to get help from Mental Health issues to Gambling and Alcohol & Substance Addictions.

Your details are safe with us

Another reason why you may be reluctant to speak to someone about your debts is the fear of how your information will be handled. A perceived fear of dealing with pushy salespeople, being harassed or receiving endless phone calls, emails or text messages. Practices that were perhaps more common in the debt advice industry before stricter regulation and GDPR laws were introduced. Claims that you can write off your debt or reduce the amount you pay each month may all seem too good to be true. Or, more bluntly make you wonder what the catch is. Some companies had previously advertised on Google and social media offering free debt advice or claiming that you’ll “become debt free” after completing a 30-second quiz. This in itself creates uncertainty and mistrust. Added to this, most of these companies may have been acting as a lead generator, or unqualified ‘introducer’ and existed solely to pass you onto someone else for a fee. We’re an approved organisation. Our advisors are highly experienced and they will always have our clients best interests at heart. However, behind our dedicated advice team sits a continued commitment to ongoing compliance and training. Over [volume] helped since 2009. We’re the No,1 rated on Trustpilot with thousands of five star reviews. We’ve helped over [volume] people in Scotland enjoy a brighter future, with over a decade of experience. Employee owned, In-house team. Your details are 100% safe and secure with Trust Deed Scotland® and you will never be passed onto any other company. If you qualify for a solution, then you will remain a client of ours which helps to ensure continuity. No pushy sales calls. Upon receiving an enquiry for help, Trust Deed Scotland® will make a reasonable attempt to contact you to find out more about how we can help you. Should you change your mind, or find another way of managing your debts then we will respect your request and ensure that your request is upheld.

Help with debt in Scotland today

You can find out more about Trust Deed Scotland® and give us a call on 0141 221 0999. Not only do we offer the Protected Trust Deed as a solution, but other alternative Scottish Debt Solutions including the Debt Arrangement Scheme.

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.

Trust Deeds vs Sequestration

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

Sequestration Considerations

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

Trust Deeds Considerations

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

Trust Deeds vs Sequestration – Alternatives

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

Can I go to Prison for Debt?

Posted on by Craig Stocks
Some people who contact Trust Deed Scotland® are worried that not paying their debts could mean they could go to prison for debt. In almost all cases, the answer to this is no. No, you cannot be sent to jail for having debts. Having debt is not a crime. In modern-day Scotland, there’s no possible way you could go to jail for non-payment of most types of debt, unsecured or otherwise. Any suggestion by a creditor that you could be sent to prison for not paying a debt is simply not true, and if they threaten this you should consider making a complaint. Ever since the Debtors (Scotland) Act of 1880, people in Scotland cannot be imprisoned for not paying their debts. Having unaffordable debt can be seriously worrying. Whether it’s credit cards, bank loans, car parking tickets, or your bank overdraft, owing money and not being able to pay it is stressful and anxiety-inducing. However, there are some exceptions to the rule. Non-payment of criminal fines where the fine is over £500. Non-payment of maintenance for a child, or a former spouse. In this case, it needs to be proven that you have the money to pay the debt, but are simply refusing to pay. If you’re unable to pay on the grounds of affordability, then this is a different matter. It is not possible to go to prison directly as a result of the non-payment of council tax debt in Scotland. This varies regionally in the UK – in England and Wales, this may not always be true. Getting sent to prison over debts there is normally only possible as a last resort if you’ve ignored the debt, or refused to pay a court order. TV licence – It is possible to be sent to jail over TV licence fines in Scotland. Again, this varies depending on your UK country you reside in, as prison for debts like TV licence evasion is more likely in Northern Ireland, Wales and England. In acts of criminality – Where you fraudulently obtain credit through deception, then it’s no longer a civil case and you can be prosecuted appropriately. However, this is NOT due to the failure to repay a credit card debt or any other type of unsecured debt.

Can I ignore debts if I won’t be sent to prison for debt?

However, just because you can’t go to prison for debt, it doesn’t mean that you should ignore your debts. Creditors can still apply to have you sequestrated or can utilise other serious forms of enforcement action against you. A decree – Scotland’s equivalent of a County Court Judgement (CCJ). Details of your decree will appear on a public register for six years. A more realistic creditor enforcement action in Scotland for non-payment of council tax arrears, may be a Wage Arrestment. More frequently, unsecured lenders will serve default notices on you, which will impact your ability to get further credit, even after you do eventually repay the debt to the creditor. And, at that point; much additional interest and charges may have been applied. If you are not paying your credit card debts, out of principle – or a complaint that you feel is valid against your lender; make sure you continue to make as much payment as you can afford and use the proper complaint channels such as the Financial Ombudsman Service. If you’re not repaying debt due to being over-committed or a recent change in circumstances, don’t worry, you are not alone. Every year in Scotland thousands of people contact Trust Deed Scotland® and other bodies looking to help with debts. We can say that no one we’ve advised has been put in jail for not paying their unsecured debts and in almost all cases, we’ve been able to offer Trust Deeds, Debt Arrangement Scheme or alternatives as a way of managing their debts and looking forward to regaining control of their finances. Regardless of whether you are looking to avoid going to prison for debt, or get on top of your bills – you should always ensure that you repay priority bills first and foremost. Find out more about what are priority debts in Scotland.

Where to get Scottish Debt Help?

If you are struggling with unaffordable debts, don’t allow yourself to feel intimidated by creditor threats. Call Trust Deed Scotland® on 0141 221 0999 for tailored, confidential Scottish debt help.

Can financial advisers help with debt?

Posted on by Craig Stocks
Financial advisors are able to give you advice on investment opportunities, tax and wealth management. The types of financial products that typically seem out of reach for people struggling with unaffordable debts. Fully qualified financial advisors can give you advice on anything from mortgages to pensions but surprisingly, financial advisors help with debt extends to only making a referral to a qualified debt advisor. In order to be able to offer you the correct debt advice, an individual should be qualified in the correct discipline. However, help with debt can be sought from a variety of places – most of which, will give you help with debt without charging a fee for their advice.

Debt Problems – What to do and where to get help?

If you have debt problems and you’re wondering what to do and where to get help with your debts, the good news is that no debt problems are unsolvable. It might not always be quick or easy, but there’s normally always a route to resolving debt problems, from one credit card default to cases where an individual can owe tends of thousands of pounds to a number of their lenders. It just wouldn’t typically be a financial advisor who would help you with your debts. When you have debt problems in Scotland, the earlier you deal with your debts, the easier they are to deal with and sometimes, the debt problems may not require a complete overhaul of your outgoings – it may be possible to come to an arrangement with the people you owe money to, also referred to as your creditors. If you have debt problems that are unaffordable, you can get experienced debt advice in Scotland from Trust Deed Scotland®, or alternatively you can approach a local money advisor or debt charity in Scotland. At Trust Deed Scotland®, we’re proud of our record in the industry, having helped over [volume] people in Scotland, and over [reviews] reviews from our clients. For us, we feel it’s important that when you do have debt problems, and you are looking at where to get help, that you are able to get the best advice. Ultimately, if you have debt problems – our advisers would talk through your situation, and give you balanced advice that puts you in control of the decision, knowing all the facts and alternatives.

How to get help with debt in Scotland?

As Trust Deed Scotland® is owned and operated in Scotland, we’re experts in Scottish debt solutions. It may be a surprise to learn that getting help with debt in Scotland is different from the process in England, Wales or Northern Ireland – thanks mostly to our unique legislation we have in Scotland. You may have heard about IVAs, which are a solution open to people south of the border but you’re unsure of the differences between IVAs and Trust Deeds. It’s another reason why financial advisors can’t help with debt as they simply don’t know the legislation as much about the pros and cons, as a company such as Trust Deed Scotland®. Similarly, it’s also possible to investigate other ways to clear your debts including debt consolidation loans in Scotland, but this can sometimes cause more problems if undertaken without examining the cause for debt in the first place, and more precisely – your affordability. If you’re looking at how to get help with debt in Scotland, you can find out more about managing your money and get debt advice, by visiting the Money Advice Service, an independent service set up to help people manage their money.

Who can help me with debt?

Few people actively seek to deliberately get themselves into debt. While it’s also true that debt comes from spending money you don’t have, in reality, it’s a change in circumstances, like personal illness, divorce, mental health problems, losing your job, or a sudden trauma caused by the death of a partner rather than frivolous reasons. Some of these changes in your circumstances can combine together to create a debt spiral and added to this, there is still a stigma attached to debt, meaning that people struggle on without seeking help with their debts. You may already be aware of the terminology thanks to ads on that you’ve seen on TV, radio, or social media and ask yourself the question of Is A Trust Deed A Good Idea? This question is common and while Trust Deeds are a good solution for those individuals who are eligible for it, in truth there are other solutions such as the Debt Arrangement Scheme, or Minimal Asset Process, which is a form of bankruptcy aimed at people who are struggling with debts. While it’s a solution that shouldn’t be taken lightly, it can be a better solution for some individuals. In short, if you’re asking who can help you with debt – the best advice that we can give you is to seek help immediately and get an idea of what your options are. If you do something about your debt today, you can stop worrying about it tomorrow. Are you ashamed of your debt? Talking about debt is the first step to tackling it. If you need help with debt, and you’re at the stage of requiring a Trust Deed, Debt Arrangement Scheme or Sequestration then you should seek the help of a qualified money adviser. Only a qualified Insolvency Practitioner can formally setup a Trust Deed or Sequestration. And only an Insolvency Practitioner or Money Adviser can setup and maintain a Debt Payment Programme as part of a Debt Arrangement Scheme. Call us on 0141 221 0999 today for a confidential chat with one of our experienced debt advisers. The debt advice that we offer is non-judgemental and we’ve been able to give over [volume] people help with their debts in Scotland. We’re also rated no.1 on Trustpilot in the Debt Relief category in Scotland, which is largely thanks to our ongoing commitments to treating customers fairly, and training processes.

What is a Notice of Assignment?

Posted on by Craig Stocks
Notices of Assignment (NOA) are used to inform you that a third party has ‘purchased’ the debt from the original lender. The new ‘assignee’ takes over collection procedures of that debt going forward, which can sometimes result in a debt collection agency being used to recover the monies on behalf of the new owner of the debt. There are two types of debt assignment:
  • Equitable Assignment
  • Legal Assignment
If a Legal Assignment has been made, part of the purchasing company’s obligations are to inform you of the situation via an official Notice of Assignment, and let you know that payment should be made to themselves rather than the original lender who borrowed money to you. The Law of Property Act, 1925 states the criteria for both types of assignment. The criteria for a Legal Assignment include:
  • The Deed of Assignment must be made in writing
  • A Notice of Assignment notification must be sent to you, as the borrower
  • The assignment must be absolute
If you have unsecured debts such as credit cards, personal loans, or catalogue debts then a notice of assignment may be used by the original creditor.

Equitable Assignment

Under an Equitable Assignment, only the amount owed is assigned, and not the original creditor’s rights and responsibilities. With Equitable Assignments, the purchasing party is unable to take enforcement action in their own right.

Legal Assignment

Legal Assignment gives the assignee transferred power to enforce the debt.

Why Do Creditors Sell Debts?

Most lenders borrow money based on risk projections and as such, an account that then falls into default becomes problematic for them to collect monies from and therefore it may be more commercially viable to pass it onto another firm who have a different business model, which allows them to purchase debts, and collect with their own techniques. When you sign a credit agreement with a creditor, there will have been a clause within the small print of that agreement. The creditor will have stated that they are able to assign their rights to a third party. However, just because a new company has taken on the debt, as per the terms of the notice of assignment, they are not allowed simply to bull you with letters, text messages, or phone calls. If you’re being threatened by any creditor, new or old, and have unaffordable debts – give us a call on 0141 221 0999 for free, confidential advice.

Notice of Assignment – What Happens Next?

As far as your credit report is concerned, the new company taking on the debt on behalf of the original creditor will notify the Credit Reference Agencies of any default once repayments have started. At this stage, you’ll see a company name-change on your credit file in regard to the debt that is subject to the notice of assignment. The previous company’s name should be removed from your credit file, and any default will now be associated with the new creditor.

Notice of Assignment – How Does It Affect You?

If you were previously having difficulty in repaying your debt before the notice of assignment was served, you may find that the new owner of the debt has more flexibility to freeze interest and charges, allowing you to pay off what is owed more quickly. Having a debt assigned to a new company can become a benefit for you as agreeing a sustainable debt repayment plan is in their mutual interest as well as yours. If you were to keep up payments – further action can be often thwarted. You should always seek expert debt advice in Scotland, if you’re struggling with unaffordable debts.

Getting Help Understanding a Notice of Assignment

If you have received a notice of assignment and you’re struggling to understand how it affects you, contact Trust Deed Scotland® today on 0141 221 0999. Our expert debt advisors are ready to give you confidential debt advice and help you understand what solutions are available for you and your debts. Since 2009, we have advised thousands of people in Scotland on the advantages and disadvantages of the Scottish Trust Deed, Debt Arrangement Scheme and alternative solutions to people experiencing financial difficulties in Scotland.

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.

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

Priority Debts vs Non-Priority Debts In Scotland

Posted on by Craig Stocks
When you owe money to several companies and don’t have enough income to pay them all – the calls, letters and text messages may start to cause you stress. With the cost of living continuing to rise, it can be difficult to know which debt should be paid first. Indeed, this is a dilemma that is affecting many people across the country right now. Some bills that you receive are regarded as priority debts because the consequences of not paying those priority debts are greater than the consequences of not paying the other non-priority debts For example, if you don’t pay your mortgage, your home could be repossessed. If you don’t pay your rent, you could be evicted. Whereas the consequences of missing a credit card payment do not have such a severe consequence. However, this doesn’t mean that you should ignore your non-priority debts as not paying back loans, credit cards and things like a bank overdraft can create problems for you too. You must always pay these priority bills before your other debts. Even with Coronavirus measures in place, where possible, these debts should be paid as priorities, because the consequences of non-payment can be serious. If you have unaffordable, unsecured debt that’s making it more difficult to pay your priority bills, then it’s really important that you get tailored and confidential debt advice as soon as possible. Remember to always get any payment breaks confirmed with your lenders – never assume that it’s an automated process. If you’ve been made redundant and forced to claim Universal Credit, or you have been furloughed – these may be enough to reorganise your priority and non-priority debts – however, make sure you get proof of this as the lender will usually ask for proof of your change of circumstance. Your unsecured debt is classed as ‘non-priority’ because the consequences of not paying these each month are much less severe than not paying your priorities each month. Trust Deed Scotland® can take a look at these debts with you and give expert debt advice and if they are unaffordable, we can provide solutions on how best to pay these debts while you ensure that you’re on top of your most important priority debts. Trust Deeds, Debt Arrangement Scheme, and other tools exist which allow you to reduce unsecured debts down to a more affordable level.

What Is A Priority Debt In Scotland?

Typical examples include the following debt types: Mortgage – not paying your mortgage could result in your property being repossessed. Rent arrears – not paying your rent could result in you being evicted from your home. Child maintenance – not paying your child maintenance service can result in your wages being arrested, goods being removed from your property and a liability order being made against you. Council tax arrears – not paying your council tax could result in your wages being arrested, or goods being removed from your property. Utility bills – not paying your gas and electric may result in you getting disconnected, or a prepayment meter fitted. Broadband & TV – not paying for your broadband & satellite tv services could result in you being connected.

What Is A Non-Priority Debt In Scotland?

  Failing to pay non-priority debts is usually less serious than not paying a priority debt. The most important debts that you have are not necessarily the biggest ones. You can’t be sent to prison for not paying non-priority debts. However, your creditors may take enforcement action against you if you do not pay them. All non-priority creditors should be treated fairly. You should not make full payments to one creditor while reducing payments to another. If you cannot afford the minimum payment to any of your non-priority debts, you should make reduced payments to all of them using a pro-rata calculation. Failure to do so could result in your debt being passed on to a debt collection agency and a Decree (CCJ in Scotland) being made against you. More likely, the non-payment of unsecured debts will firstly result in a default notice being served against you. When a default notice is issued against you for missed payments, you will find your credit rating is affected. Contact Trust Deed Scotland® for advice on 0141 221 0999.

Non-Priority Debts in Scotland include:

Credit card debts, store cards, and personal loans. Bank overdrafts, payday loans, catalogue debts. Money that you borrow from your friends and family is also regarded as a Non-Priority debt. If you have unaffordable debts and you’re struggling to repay them all, don’t worry you’re not alone. an experienced debt adviser can help you separate your priority and non-priority debts before explaining what options may be available to you for dealing with them.

Struggling With Non-Priority Debt In Scotland?

  If you’re struggling with non-priority debt in Scotland – Work out your budget to check how much you have left each month after all your household bills have been paid. You can then use any surplus income to clear your priority arrears as quickly as possible. You can discuss your circumstances with your creditors and offer reduced payments to non-priority debts – this will help free up as much surplus as possible for the priority arrears. Then, when you contact your non-priority creditors, explain why you’re in debt. If you can’t make an offer of repayment straight away, ask for more time, for example, 14 or 28 days. This will give you more time to get expert advice and work out your budget longterm. It’s important to try to pay at least the regular instalment in the meantime. If you can’t do this which is understandable, pay as much as you can afford – even a payment of £1 to the non-priority debt shows a commitment to repay your debs and again allows you time to get help as soon as possible. If you feel like you’re really struggling with unaffordable debts – Don’t worry. You’re not alone. Trust Deed Scotland® have helped thousands of people in Scotland since 2009. We have dealt with cases that included council tax arrears, credit card debts and payday loans. We’ve successfully prevented and lifted creditor enforcement actions such as Wage Arrestments. Whatever the cause of your money problems, we can help you find the way out and make a fresh start. If you have over £3,000 of unaffordable, non-priority debt, and live in Scotland, Trust Deed Scotland® will help find the right solution for you. Contact us on 0141 221 0999, or find out which solutions you may qualify for by using our free debt calculator tool online.

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.