Trust Deeds

Are you being constantly harassed by your creditors for payment, with threats of CCJs, bailiff action or even bankruptcy?  After your basic living costs, do you have a small disposable income that you are desperately trying to stretch across all your creditors?

If you live in Scotland you are able to propose a Trust Deed with the help of a Trustee who is a Licensed Insolvency Practitioner.

A Trust Deed is a legally binding arrangement between you and your creditors to repay a proportion of your debt over a fixed period of time, which is usually 36 months.

Most individuals offer to make monthly payments from their income for the duration of the Trust Deed.

Trust Deed Process

It is not possible for you to act for yourself in putting forward a Trust Deed Proposal to your creditors. You need to engage the services of an Insolvency Practitioner who will act as your Trustee and then upon approval of the Trust Deed will act as your Supervisor.

• With the assistance of the Trustee and your case administrator your Proposal is put together. The Proposal will contain details of your financial situation including a financial statement showing your household income and expenditure. The income that you have left over after deducting your day-to-day living expenses will be the monthly contribution payment offered to your creditors in the Proposal. The Proposal will also detail your assets and liabilities, the reasons for your financial difficulty and a comparison between what creditors will be likely to receive back through the Trust Deed and through Sequestration.
• Provided that certain criteria are met, the Trust Deed can be registered as "protected" thus preventing creditors from petitioning for sequestration as long as you abide by the terms contained therein.

What would you need to do if you wish to propose a Trust Deed?

• You will need to show that you are committed to repaying creditors through the Trust Deed and work with your case administrator to ensure that your Proposal is put to creditors with the minimum of delay.
• You will need to show that you have a regular form of income. You need to show that you are able to commit to the agreed amount for that entire duration. If you are self employed you will need to show that your business is capable of supporting the level of income that you are drawing and that all personal tax due is accounted for.
• You will need to provide details of any other household income such as your partner's income, benefits or pension payments received.
• You will need to provide details of all your household expenses. Creditors have guidelines that are used for certain categories of expenditure. Your case administrator will assist you in compiling these however if you require a higher allowance than is usually accepted this can be explained in the Proposal.
• You will need to provide details of all your creditors including amounts owed and reference numbers.
• You will need to provide details of any assets plus any amounts secured against them.
• You will need to provide a financial statement, which will explain the reasons for your current financial difficulty.

Client Testimonials

We both can't thank you enough for all the help you have given to us. We both feel now we can get our lives back on track and look forward to a better life. You have all been brilliant. Thank you.

Latest News

• Late Payment of Commercial Debt: Avoiding Financial Crisis
  
  

  Late Payment of Commercial Debt: How to Avoid It Recent figures show an increasing number of UK companies getting into the bad habit of late payment of commercial debt, with most of them paying debts almost a month after the agreed payment schedule in 2011. The worst identified culprits ...

  
  Posted on 16 Feb 2012
  In Uncategorised | 0 comments