November 2019

Debt Consolidation

Scottish Trust Deeds & How They Help Scotland Residents Clear Debt

Scottish trust deeds are a debt solution designed to write off up to 90% of debt for people with significant debt levels looking for debt relief.

Similar to an IVA, trust deeds (protected trust deeds) are a debt solution which has what is known as an interim order, which is an order by the courts which prevents lenders and creditors from harassing or even contacting the people who owe the money for further repayments, and encourages creditors to stick to the trust deed proposal and repayment schedule.

It is a criminal offense for lenders and creditors chase people in debt for repayments when an interim order is in place, it is a legal injunction issued by the British courts.

Scottish residents in debt can avoid going bankrupt by using a trust deed, which can offer people a way to get out of debt without having to sell their property, enabling them to remove their debts over time without the sale of their assets.

Monthly repayments can be significantly reduced with a Scottish trust deed (often by up to 90% however commonly monthly payments for example £800 can be slashed to about £280 per month, enabling the person in debt to get their debts down much faster.

How Much Debt Can Be Written Off With A Scottish Protected Trust Deed? (PTD)

There is no upper limit to the amount of debt that can be written off once the 4 year trust deed has completed, and it is a debt solution for people no matter how much debt they are in.

For example if someone in debt has approximately £100,000 in debt and after the 4 year period when the scheme is completed, and there is for example £78,000 of debt still standing, this amount can usually be written off, meaning the overwhelming majority of the debt can be wiped completely.

How Long Does A Protected Trust Deed Take To Set Up?

Usually a trust deed can be set up within about 3 – 4 weeks, that is from the point of initial enquiry through to the trust deed beginning, the trust deed itself will last (usually) for about four years.

Will I Be Accepted Or Rejected For A Scottish Trust Deed?

Acceptance is determined by three different factors:

  • Your debt level must be above £5,000 with more than 2 lenders
  • The courts must agree to the Trust Deed proposal
  • The creditors must agree to the proposal

These are the three criteria for the scottish trust deed and are essential for it going ahead. Should the courts or your creditors refuse the Trust deed it will not go through.

If you would like to find out more about protected trust deeds and are a scottish resident who is struggling with debt and other financial issues, feel free to contact the team at ‘first debt advice’, there are also other debt management companies’ who will issue Trust deeds to residents of Scotland, a simple search will show a number of companies’ dealing with trust deeds.

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