Protected trust deeds are a type of bankruptcy for citizens of Scotland who wish to prevent filing for bankruptcy. With more and more individuals getting into personal debt, the weak economic climate means some individuals actually owe more cash than they make in a year. This current financial condition is not great in the long term and will almost certainly end in financial ruin unless people do something about their debt and get the help they need. Fortunately there are options like debt arrangement schemes that can help you clear your financial debts.
Do I need to owe a particular amount? The internet has lots of info on debt and contradicting assessments on the amount you have to owe. Some say 5000 or more, some 15,000. Most terms have the same thing in common: you must owe at least 2 creditors to be accepted for a trust deed.
Which debts could be included? They only include unsecured debts, such as store cards, credit cards, overdrafts and loans. Loans taken out secured on assets like a house are secured financial debt and can not be added to your protected trust deed.
How much will my repayments be? The monthly repayment will be different for each person as this is based on personal circumstances such as debt owed and current income. After looking at your income and outgoings your trustee will decide on your disposable income, which will go towards paying your trust deed each month. Your trustee will make sure you have enough to pay your debt repayment and still have enough to pay your rent and food bills and every day living costs. You will need to have around 150 disposable income at the end of the month to make it feasible.
When will my deed finish? A typical agreement is generally paid over 3 years but can be longer and very rarely shorter. You could pay your personal debt off sooner if you get a large amount of cash like winning the lottery or receiving a large sum in a will.
When does my deed become 'protected'? When your trustee is satisfied with the proposal, it will be sent to your lenders for approval and included in the Edinburgh Gazette. Your creditors will 5 weeks to agree to the new trust deed plan and if at least 67 % agree then your deed will become protected regardless of the other 33 % objecting. 8 weeks is the time it can take to have your deed set up. What happens at the end of the trust deed? After making payments on time for 36 months your remaining financial debt is written off. After all that people are normally very wary about obtaining more credit, but as a Scottish trust deed will have hampered your credit score, it's important to start rebuilding your credit history.
How do i get started? Contact a financial debt help advice center in your local area for help and help on debt. They will assess your current situation and see whether a trust deed is the right way to go.
Do I need to owe a particular amount? The internet has lots of info on debt and contradicting assessments on the amount you have to owe. Some say 5000 or more, some 15,000. Most terms have the same thing in common: you must owe at least 2 creditors to be accepted for a trust deed.
Which debts could be included? They only include unsecured debts, such as store cards, credit cards, overdrafts and loans. Loans taken out secured on assets like a house are secured financial debt and can not be added to your protected trust deed.
How much will my repayments be? The monthly repayment will be different for each person as this is based on personal circumstances such as debt owed and current income. After looking at your income and outgoings your trustee will decide on your disposable income, which will go towards paying your trust deed each month. Your trustee will make sure you have enough to pay your debt repayment and still have enough to pay your rent and food bills and every day living costs. You will need to have around 150 disposable income at the end of the month to make it feasible.
When will my deed finish? A typical agreement is generally paid over 3 years but can be longer and very rarely shorter. You could pay your personal debt off sooner if you get a large amount of cash like winning the lottery or receiving a large sum in a will.
When does my deed become 'protected'? When your trustee is satisfied with the proposal, it will be sent to your lenders for approval and included in the Edinburgh Gazette. Your creditors will 5 weeks to agree to the new trust deed plan and if at least 67 % agree then your deed will become protected regardless of the other 33 % objecting. 8 weeks is the time it can take to have your deed set up. What happens at the end of the trust deed? After making payments on time for 36 months your remaining financial debt is written off. After all that people are normally very wary about obtaining more credit, but as a Scottish trust deed will have hampered your credit score, it's important to start rebuilding your credit history.
How do i get started? Contact a financial debt help advice center in your local area for help and help on debt. They will assess your current situation and see whether a trust deed is the right way to go.