Do I qualify for a Trust Deed?
As long as you make the agreed affordable monthly payment to your unsecured creditors each month as set out in your Trust Deed proposal, you could be debt-free in as little as four years.
A Trust Deed has many advantages, but in order to qualify you must be able to meet a few basic requirements:
Trust Deeds are only available for Scottish residents, so you must live in Scotland in order to apply for this type of debt solution.
There are a few other conditions – a Trust Deed is available to people who:
- Are struggling to meet the agreed repayments on their unsecured debts; AND
- Have a minimum unsecured debt level of at least £5,000; AND
- Can afford to make a monthly contribution to their debts; AND
- Wish to avoid sequestration; AND
- Would like a guarantee that their unsecured creditors will freeze interest and charges on their debts.
Protected Trust Deed
Protected Trust Deeds mean your creditors have to stop any legal proceedings against you. They can’t apply for Court Orders to force you to sell your home, and they can’t file for sequestration.
However, in order to apply for a Protected Trust Deed, your Trustee must be an Insolvency Practitioner (IP) who must take control of your assets for the duration of your Trust Deed agreement.
What if I don’t qualify?
When you get in touch with PayPlan, we’ll go through your debts and finances, and look at all the potential debt solutions that could be an option for you.
95% of Trust Deeds that are proposed through our associated company – PayPlan Scotland Limited – are successful. But if a Trust Deed is not an option for you, we will help you to find another way to manage your debts through another debt solution. Here are some of the alternative options that may be available to you:
- Debt Arrangement Scheme (DAS)
- Minimal Asset Process (MAP)
- Debt Management Plan (DMP)
If you need help with your debts, contact PayPlan today, and our friendly advisers will do all they can to help you regain control.