Call us FREE on 0800 434 6281 or on your mobile 0141 374 2034

FAQs

How much must I owe before I can sign a Trust Deed?

There is no minimum statutory limit. If you are no longer able to pay your debt in full then a Trust Deed may be an option.

How long does the Trust Deed last?

Normally 3 years. In certain circumstances it can be agreed with you that the Trust Deed can last longer.

Will the signing of a Trust Deed stop collection letters and phonecalls from creditors?

Yes. Initially you may still receive some communication but this should stop shortly after the creditors have been notified of the Trust Deed.

Will the Trust Deed prevent creditors taking further recovery action against me?

Yes. Once the Trust Deed has become protected, unsecured creditors can take no further recovery action against you.

How will the signing of a Trust Deed affect my home?

All assets are conveyed to a Trustee on the signing of a Trust Deed and the Trustee has a duty to realise any equity in a property. There are a number of ways in which this can be dealt with i.e. 3rd party funds, re-mortgage, application to mortgage to rent scheme, sale of property. This would be agreed with the Trustee at the initial meeting.

Do creditors have to accept a Trust Deed?

No. Creditors do not have to accept a Trust Deed but it will only fail to become "protected" if creditors representing over 33% of the total debt value or the majority in number of creditors object in writing within 5 weeks of receiving notice of the Trust Deed.

Will interest and charges be frozen?

Yes, once the Trust Deed is signed interest and charges must be frozen by the creditors.

Where is the initial meeting held?

The meeting can be held in the your home, the Trustee’s office, or if both parties agree, by telephone.

Who pays the Trustee’s fees?

All costs would be met from the assets transferred to the Trustee and/or money paid to the Trustee by way of contribution payments.

What are the options if the Trust Deed fails to become "protected"?

You would normally use the failed Trust Deed to petition for Sequestration. In certain circumstances you may continue with an "unprotected" Trust Deed.

What type of debts can be included in a Trust Deed?

All unsecured debts will be included. However, any fraudulent transaction, breach of trust or court fine would not be discharged. Additionally, from 1 April 2008, student loans no longer discharged.

Will I lose my car if I enter a Trust Deed?

No, not necessarily. The value of the car, whether it is subject to finance, or essential for work will determine what will happen with the car.

How will the signing of a Trust Deed affect my credit rating?

The signing of a Trust Deed will have some impact on your credit rating.

If I have already been taken to court, can I sign a Trust Deed?

It depends on the stage of the proceedings. Someone who has already been served with a charge for payment (the stage before bankruptcy) would be unlikely to benefit from signing a Trust Deed. however it depends on the person’s circumstances.

Will the signing of a Trust Deed stop a wages arrestment?

The Trust Deed will not stop a wages arrestment which is already in place. In practice however some creditors may agree to lift the arrestment on the protection of the Trust Deed. Once protected the Trust Deed will stop any further arrestments.

What happens if the I stop paying into the Trust Deed?

If you fail to make the agreed contribution payment when you are reasonably able to do so, the Trustee can terminate the Trust Deed. This will remove the protection offered to the debtor from acceding creditors. In certain circumstances the Trustee can present a petition to the court for the debtors sequestration and thereafter ask the court to enforce a payment order.

What happens if my circumstances change during the Trust Deed?

There will be an annual review of your circumstances. You should, however, advise the Trustee of any material change in your circumstances as soon as the change happens

Can I be self-employed during the term of the Trust Deed?

Yes but it may depend on the nature of the employment. This would be discussed at the initial meeting.

What happens if I inherit an asset during the Trust Deed period?

Any asset owned or acquired during the first year of the Trust Deed period vests in the Trustee and the Trustee must take steps to realise such assets for the benefit of creditors.

What happens at the end of the Trust Deed period?

The Trustee pays a dividend to creditors, finalises the administration of the Trust Deed and applies for his discharge. The Trustee will then send you a letter confirming your discharge. Any assets or money remaining after all the expenses of the Trust Deed have been met and all creditors have been paid will be returned to you.

Can I still be a director of a limited company?

Yes but the articles of a limited company may have to be changed to allow this to happen. You should check these articles

Can I hold any other public offices?

Usually, but some public bodies have rules preventing anyone who has signed a Trust Deed from holding office. You should check with the body concerned.

Do I have to tell their employer that I have signed a Trust Deed?

Not unless your contract of employment dictates that they should, or if you owe your employer money.

I have joint debt with my partner. How will the signing of a Trust Deed affect him/her?

Your partner will become liable for the whole of the joint debt when you sign the Trust Deed.

Can I cancel the Trust Deed after it has been signed?

No. Once signed you are bound by its terms and it cannot be cancelled.

Are there any other options?

Yes, namely the Debt Management Plan, DAS or Sequestration. These options will be discussed fully at the initial meeting.

Are there any set-up fees?

We do not charge you any upfront fees. The expert confidential debt advice that we give you is free of charge and without obligation.

Can A Trust Deed really write off up to 90% of my unsecured debts?

Yes! Dependent on your circumstances and the final agreement that can be reached with your creditors, as much of 90% of your unsecured debt (excluding IP Fees, which are generally £2500-4500 excluding VAT and disbursements) can be written off and you will not be required to pay it back.

Contact info


email

Email us


telephone

Call us FREE on

0800 434 6281

Or on your mobile

0141 374 2034


address

Scotland Trust Deeds
30 Clarendon Road
Watford
Herts
WD17 1JJ

Registered in England & Wales
No. 05588842

>