From time to time you may hear about a debt solution called a Protected Trust Deed. This solution is advertised heavily on TV, radio and newspapers. As a registered charity providing debt advice we offer a full range of debt solutions when we offer our advice. The advice is then tailored to your specific situation. We understand exactly who is and is not suitable for each debt option. in many instance, people can’t enter a Scottish Trust Deed and they want to know why.
If you want to check if you would be applicable for a Trust Deed then why not complete our online debt analyser today. This takes 10 minutes and is completely confidential. You will be given the best debt solution for you based on the information provided.
Why Can’t You Enter a Trust Deed?
It may seem like the perfect debt solution – 4 years and you only have to pay what you can reasonably afford to your debt? What could be better? Well, there is some information you need to know about the Trust Deed debt solution. It’s important to provide tailored debt advice which is specific to your situation as generic information could mean you enter the wrong debt plan. That’s why we always explain every appropriate debt solution so you can make an informed decision.
A Trust Deed is an insolvency debt solution. You will affect your credit rating by entering the solution, but it can give you a route out of debt, freeze your interest and charges which will be written off at the end of the solution and give you peace of mind that your creditors can’t hassle you for repayment.
For some people, the Trust Deed is not the correct debt solution and you would be better considering another route. Some of the most common reasons why a Trust Deed is not the best resolution to money worries is:
- You could repay all of the debt in a 4 year debt arrangement scheme.
- Your income isn’t consistent and fluctuates.
- If you earn £247.50 per week you could be better entering bankruptcy (unless you have an asset with a lot of equity).
- In a Trust Deed you must offer any available equity from your assets, like a house or car. You will usually be able to keep your house and car. If you own a house which has £100,000 equity ( e.g. £100,000 mortgage and the property is valued at £200,000 ) then this would have to be included in your Trust Deed. If your debt is £15,000 then the Trust Deed would not be suitable.
- You think you will be coming into money during the Trust Deed. This can be a lottery win, inheritance or redundancy money among other options. If you receive a lump sum of money then this must be added into your Trust Deed, even if it means repaying all of the debt.
If you think you can’t enter a Trust Deed then contact Debt Support Trust today on 0800 085 0226 where we can tell you whether you would be suitable. This is a free phone call from a landline. If you’re calling from a mobile, please let the expert advisor know and we’ll call you back.
You can also complete a confidential debt analyser below to understand which debt solutions would be recommended for you.