Do I qualify?
Here is an example of how a Scottish Trust Deed could make your debts affordable:
Let say your unsecured debts
looked like this...
Total Owed £28,000
After a Scottish Trust Deed...
New monthly repayment is based on affordability and varies from plan to plan.
Visit our FAQ Section for any in depth information on Scottish Trust Deeds
Obtaining a Scottish Trust Deed is a relatively simple process and is very similar to an individual voluntary arrangement (IVA). It can take up to eight weeks to get all the paperwork completed before you can start – so it is not an overnight solution – but it is time well spent in ensuring your agreement is legally binding with creditors and you can be debt-free in the future.
But how exactly does the process of getting a Scottish Trust Deed work?
Doing a household budget that shows your income, expenses and debt payments will be necessary before you begin. The process of choosing a trustee to oversee your Scottish Trust Deed will move much more quickly if you do, as anyone you approach will want to see what your financial commitments are.
Not everyone is suitable for a Scottish Trust Deed. You must have over £10,000 in unsecured debt (link to understanding your debt page) and a minimum of £150 in surplus income after your essential bills have been paid for your payment plan. Debt payments are NOT included in these calculations, as only the surplus income left once your household expenses have been met will be used to pay your creditors.
An application for and the subsequent administration of, a Scottish Trust Deed can only be made by a properly licensed individual with an in-depth knowledge of insolvency law and financial matters. That is usually an insolvency practitioner or an accountant that specialises in insolvency law, however it is a good idea to speak to two or three professionals about the insolvency process and what you can expect. Like any other profession it is important to compare the service you will receive and how comfortable you feel with each as you will be dealing with them for the next three to four years.
Once you have chosen who you want to look after your Scottish Trust Deed for the next three to four years, they can get on with the business of dealing with your creditors and getting your Trust Deed protected so none of them can pursue you any more. This is the point when you can sit back and start to relax. Your Trustee will give you advice about your budget, fill in all the paperwork, sort out the valuation and sale of any assets and contact your creditors to tell them of your Scottish Trust Deed and make them an offer based on your surplus income and asset values.
Simultaneously they will apply to the courts to get your Scottish Trust Deed protected so your creditors cannot attempt to sequester you while all the arrangements for your Scottish Trust Deeds are being completed. If the creditors that make up two thirds of your debt by value agree to the arrangements being proposed, your Scottish Trust Deed will be protected and your payment term can begin.