- Are Scottish Trust Deeds a Government Approved Debt Solution?
You should not specifically consider a Trust Deed to be a Government Approved Debt Solution (as it is described on various other websites). Scottish Trust Deeds do however exist under Government insolvency legislation and are an available formal legal solution to deal with unmanageable personal debt.
- Will a Scottish Trust Deed Affect My Credit Rating?
A Trust Deed will normally have a significant effect on a credit rating. Details of the Scottish Trust Deed will remain on an individual’s credit rating for six years.
How Much Debt Must I Owe to do a Scottish Trust Deed?
Formally there is no minimum amount. In reality Scottish Trust Deed companies vary in the minimum amount of debt they will accept to take on a case.
How Long Does it Take to Set Up Scottish Trust Deeds?
In normal circumstances it might take around six weeks to set up a Protected Trust Deed. This period of time will vary according to individual circumstances.
- How Long Does a Scottish Trust Deed Last?
For most people the period will be three years.
What Alternatives Are There to Scottish Trust Deeds to Deal with my Debts?
It depends on your circumstances but options may include sequestration (bankruptcy), LILA sequestration, The Debt Arrangement Scheme and Debt Management Plans. Further detail on each is available via the main menu of this website.
What Does the Term “Protected” Trust Deed Mean?
Once your Scottish Trust Deed firm has written to your creditors with details of your proposed Trust Deed they have the opportunity to support or reject the proposal. Provided few creditors raise objections your Trust Deed will become “protected” which means that all creditors are bound to the terms of the Trust Deed (whether they accepted or rejected it) and that none can take any kind of recovery action against you.
Will I Be Completely Debt Free at the End of My Scottish Trust Deed?
Provided that you have included all unsecured creditors in your Scottish Trust Deed (which you must), have not taken on further debt, and have met your commitments to the Scottish Trust Deed you will be completely debt free of unsecured debt at the end of the Scottish Trust Deed. Please note that Trust Deeds do not include secured debts such as mortgages or hire purchase agreements.
Who Pays the Fees for my Scottish Trust Deeds firm?
Their fees are agreed with creditors at the start of the Trust Deed. The fees are drawn from the money that you are contributing to the Trust Deed.
Do I Have to Own My Home to do a Scottish Trust Deed?
No. Scottish Trust Deeds are available to homeowners, tenants and those who live with friends or family.
Will I Lose My Home If I Do a Protected Trust Deed?
Provided you meet your commitments to the Protected Trust Deed you will not lose your home. A Trust Deed is often selected by homeowners in preference to bankruptcy which can often lead to the loss of a home. We strongly recommend that any homeowner gets written clarification as to how any equity in their home will be dealt with prior to signing a Trust Deed.
Will I Have to Sell My Car if I do a Scottish Trust Deed?
If you have a reasonable need for a car (for example work commuting) you will be able to keep a car of reasonable value. If you own an expensive vehicle the subject will be discussed with you in advance of starting a Scottish Trust Deed.
Will My Personal Possessions be Taken From Me if I Do a Scottish Trust Deed?
No. Normal Personal posessions (which do not have exceptional value) would not be taken from you in a Scottish Trust Deed.
What Debts Can be Included in a Scottish Trust Deed?
You must include all unsecured debts. Typically these might be credit cards, overdrafts, bank loans, catalogue debts etc. It does not include secured debts such as mortgages, secured home loans or hire purchase. You should continue to pay secured debts in full. Student loans cannot be included in a Scottish Trust Deed.
What Happens if my Circumstances Change During a Scottish Trust Deed?
If your circumstances improve your Trustee may require you to increase your payments into the Scottish Trust Deed. Should your circumstances worsen they may allow you to reduce or suspend your contributions.
What Happens if I am Unhappy with my Trustee?
Firstly you should raise your concerns with the Trustee themselves. If you are unhappy with the response you can then raise the matter with the Trustee’s professional body. Should you remain unhappy you can take the matter to the Accountant in Bankruptcy.