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.
Normally 3 years. In certain circumstances it can be agreed with you that the Trust Deed can last longer.
Yes. Initially you may still receive some communication but this should stop shortly after the creditors have been notified of the Trust Deed.
Yes. Once the Trust Deed has become protected, unsecured creditors can take no further recovery action against you.
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.
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.
Yes, once the Trust Deed is signed interest and charges must be frozen by the creditors.
The meeting can be held in the your home, the Trustee’s office, or if both parties agree, by telephone.
All costs would be met from the assets transferred to the Trustee and/or money paid to the Trustee by way of contribution payments.
You would normally use the failed Trust Deed to petition for Sequestration. In certain circumstances you may continue with an "unprotected" 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.
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.
The signing of a Trust Deed will have some impact on your credit rating.
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.
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.
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.
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
Yes but it may depend on the nature of the employment. This would be discussed at the initial meeting.
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.
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.
Yes but the articles of a limited company may have to be changed to allow this to happen. You should check these articles
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.
Not unless your contract of employment dictates that they should, or if you owe your employer money.
Your partner will become liable for the whole of the joint debt when you sign the Trust Deed.
No. Once signed you are bound by its terms and it cannot be cancelled.
Yes, namely the Debt Management Plan, DAS or Sequestration. These options will be discussed fully at the initial meeting.
We do not charge you any upfront fees. The expert confidential debt advice that we give you is free of charge and without obligation.
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.
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Scotland Trust Deeds
30 Clarendon Road
Registered in England & Wales