Clear your debt in affordable payments with a Trust Deed from PayPlan*
At PayPlan we recognise that debt is a part of everyday life that knows no social or national boundaries. Scottish debt solutions differ to those available in the UK but you don’t have to go elsewhere, all PayPlan advisors are fully equipped to offer advice and guidance on these debt solutions.
One of the different debt solutions available to Scottish residents is a TRUST DEED.
What is a Trust Deed?
A Scottish Trust Deed is an agreement between you and your creditors – the people you owe money to. It works by you agreeing to REPAY A PERCENTAGE of your debt in affordable monthly payments over a given time – usually around four or five years. And your creditors agree to WRITE OFF any outstanding debt at the end of your Trust Deed.
It’s a straightforward, sensible solution that can help you get to grips with your finances and gives you the chance to start LIVING AGAIN.
Is a Trust Deed right for me?
If you live in Scotland and have an unsecured debt of £5,000 or more, a Trust Deed could be the right solution for you. It’s the preferred solution for many people as it enables them to avoid Sequestration (bankruptcy), and all the unsettling consequences that come with it.
Trust Deeds are voluntary to enter into, but once formally signed, they become LEGALLY BINDING between you and your creditors. So, as long as you act within the terms of the agreement (which includes declaring all your assets and income for regular review), you can look forward to living life WITHOUT WORRY or despair.
How a Trust Deed works
Within a Trust Deed, an agreement between you and your unsecured creditors is arranged by a qualified Insolvency Practitioner known as a Trustee. The Trustee will work with you on a proposal to see how much of your debt you can reasonably pay off, taking into account your assets and monthly income.
The Trustee will present this proposal to your creditors and as long as no more than half (in number) or a third (in value) object to it, then your Trust Deed will become PROTECTED. Once protected, none of the creditors named in the agreement can take further action against you. They cannot make you bankrupt or levy further interest and charges, giving you greater PEACE OF MIND and the freedom to enjoy life. Your trustee will also handle communications with your creditors on your behalf during your debt solution.
Your trustee will administer the Trust Deed and upon successful completion, any remaining debt will be WRITTEN OFF. If you decide a trust deed is the debt solution for you, we will refer you to our sister company PayPlan Scotland who will assist you with the set up. Any PayPlan Scotland administrative costs are included in your affordable monthly payment so you won’t be charged any additional costs. This might not be the case with other debt solution providers.
How about the ‘small print’?
Whether or not a Trust Deed is the right solution for you will depend on many things and you should consider all the implications before making a commitment. By embarking on a Trust Deed, you will be entered into a public register and your credit rating could be adversely affected. If you don’t keep to the terms of your agreement your trust deed will fail then your creditors could file for sequestration, which is the Scottish equivalent to bankruptcy
And remember, we don’t just advise on Trust Deeds. We have over 20 years’ experience in helping people to deal with their debt and can advise on a wide range of other workable solutions for Scottish residents. These include the government-run Debt Arrangement Scheme (DAS) and the more informal Debt Management Plan.
Over the last few years, we have helped thousands of people living in Scotland with their debt problems and we’re confident WE CAN HELP YOU TOO.
*PayPlan refer clients to PayPlan Scotland Limited for Trust Deeds.
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There are also alternatives to a trust deed that might be a better fit depending on your personal situation:
Advice on Trust Deeds
A trust deed will not be the ideal solution for everyone and you should consider all the implications before you enter into an agreement.
For debt help and advice or for further information on Trust Deeds in Scotland, call PayPlan free on 0800 280 2816 or use our online Debt Help Form.
Trust Deed FAQs
As long as you are a resident in Scotland and struggling with unsecured debts of £5,000 or more, a Trust Deed could help you. Each Trust Deed is treated on an individual basis. Get in touch with Payplan to discuss your unique circumstances.
Only unsecured debts can be included in a Trust Deed (these are debts that aren’t secured against property or other assets). There is no set amount of debt or level of contribution required for a Trust Deed.
In the case of Sequestration, life can become disrupted, details of your debts may become publicly available, and you cannot hold public office. However, a protected Trust Deed is more flexible, and this is a factor as to why it is often favoured over Sequestration. Other debt management solutions that are available to Scottish residents include the Debt Arrangement Scheme (DAS) which is government-run, and the more informal Debt Management Plan.
As with all debt solutions there will be strict rules to adhere to during the agreement. All assets will need to be declared in order to obtain a Trust Deed, and your income and expenditure may be reviewed regularly. A Trust Deed will also affect your credit rating.
There are upfront costs with a trust deed with PayPlan Scotland. Any administrative costs are paid for from the affordable monthly payment.
A Trust Deed will not be the ideal solution for everyone and you should consider all the implications before you enter into an agreement. Remember that there will be restrictions on your expenditure and lenders may reject the arrangement. If the arrangement fails the creditors may force bankruptcy or reinstate interest and charges. If you need to release equity this may extend the arrangement and only unsecured debts will be discharged as part of the arrangement.
For debt help and advice, or for further information on Trust Deeds in Scotland, call PayPlan free on [tel] or use our online Debt Help Form.
Take back control – Contact us today
Whether you think a Trust Deed may be suitable for you or not, our expert advisers are always on hand to offer free help and advice without obligation.
You can call them free on 0800 280 2816. They’ll listen to you and talk about you, your life, your debt and your plans for the future. You’ll find them understanding of your situation and helpful in your search for a solution that’s right for you.
If you already think that a Trust Deed is the right choice for you, then simply call our advisers today on 0800 280 2816 and start to take control of your life and your debt. And please don’t be put off if our advisers are busy helping our other clients, just fill in our online Debt Help form and we will call you back.