Help and advice on Scottish Protected Trust Deeds

If you are a Scottish resident and are struggling to pay the minimum repayment on your debts then the likely hood is you would have started looking for a solution by now. Search on Google and find thousands of companies offering unique solutions to get out of debt but knowing which one to go for can feel like a minefield. An ever growing popular solution for people living in Scotland is a Protected Trust Deed.

What is a Protected Trust Deed?

A Protected Trust Deed is a form of government legislation that enables you to legally write off a percentage of the debt which you cannot afford to repay over a set period (usually 36 months). It is a very powerful tool in the battle against debt problems as it can get you completely debt free, legally in no longer than 3 years. It is an excellent solution for those of us who cannot afford to repay even the bare minimum towards our debts each month, and who are generally finding it a struggle financially. There are other debt solutions on the market such a Debt Management Plans, Debt Relief Orders and IVAs but the Scottish Trust Deed debt solution has distinct advantages.

What are the advantages?

1. Freezes all the interest and charges on your debts
2. Creditors are not legally allowed to contact you whilst on the programme by phone, mail or 3. any means
3. You dont have to make multiple payments to different creditors
4. You make one lower affordable monthly repayment
5. Up to 90% of your debt can be written off
6. You will be completely debt free in a maximum of 36 months

What is the process?

Visit our website and use our calculator to see if you qualify for a Protected Trust Deed. If you do the website will notify you and an advisor will call you shortly to run through some details with you. They will then send out the relevant paperwork for you to sign. Once we are in receipt of this its a case of just sitting back and let us do the work! Our advisors will go through your income and expenditure details and work with you to find a lower repayment figure that you can afford to repay each month. You are obliged to stick to this repayment figure for the set period and in return for doing so, and as part of the trust deed formal arrangement, your creditors will agree to write off any remaining debt after the period has elapsed, leaving you to walk away debt free.

How long does it take to setup a Trust Deed?

All Protected Trust Deeds have to be setup by a "Trustee" (licensed Insolvency Practioner) and this can take approximately 6 weeks to do. The Trustee will create a draft proposal to present to your creditors which you must also sign. Upon acceptance from your creditors the programme will begin immediately. Your Trustee will instruct your creditors to forward any correspondence to them as they will deal with your case from here on in, meaning all those harassing phone calls and letter will stop. This is a legal obligation and part of the formal arrangement of a Trust Deed, unlike debt management which is informal meaning your creditors can still pursue you for the debt, even if you have entered into a debt management programme.

How long does it take to become debt free?

The set period for a Protected Trust Deed is a maximum of 36 months. This is legally binding meaning it cannot continue any further than this point. As long as you have stuck to your repayments for this set period any remaining debt will be written off by your creditors.

What are the downsides?

Like any debt solution, there is always a downside unfortunately and in this circumstance it will be your credit rating. As part of the arrangement it is the duty of the creditors to notify credit reference agencies to tell them that you are in a trust deed and you have not been able to maintain the terms of your original contract with them. This sounds a lot worse than it actually is, basically to summarise, you may find it difficult to obtain further credit in the future. But, if you have been in debt for years struggling it is highly unlikely that you will want to go out and get into further debt! So  its all about putting things into perspective. Ask yourself, "Is my credit rating really that important to me?"

How do I see if I qualify?

Find a reputable #links# company they will be able to tell you if you qualify. If you do, great news! You can begin your journey to debt freedom straight away. If it turns out you do not qualify for a #links#, dont worry, there are many other debt solutions we can help you with.