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Trust Deed Online – Everything You Need to Know

Trust Deed Online

For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.

If you’re suffering from debt and reside in Scotland, then a trust deed might be a debt solution worth exploring. 

You can even get your trust deed set up online, though the procedure for this might be slightly tricky. 

In this post, I’ll be dissecting how you can set up a trust deed online easily and what steps you should take to ensure that it’s a success. 

How can you apply for a Trust Deed online?

Firstly, you need to know how much unsecured debt you have. Please note that you can only apply for a trust deed if you have unsecured debts that totals up to £5,000 or more. So, if you have debt that total up to less than that, then you should look towards other debt solutions. 

Secondly, you should be seeking debt advice about whether or not a trust deed would be right for you or not. You can definitely obtain this debt advice from a professional online. Independent debt charities such as Stepchange or Payplan have trained professionals that can help guide you about which debt solution would be best for you. 

Once you’ve gone over all debt solutions available to you in Scotland and determined that a trust deed is definitely the one to go for, then you can start looking for an insolvency practitioner who will act as the trustee in your trust deed. 

You can definitely find an appropriate insolvency practitioner in Scotland that will help you set up your trust deed online. Furthermore, you can have online calls with them in order to discuss what the monthly payments of your trust deed are going to look like.

Your IP will be able to provide you with adequate debt advice about what your monthly payments are going to look like. When it comes to trust deeds, monthly payments will depend on how much you can afford. 

If you need a second opinion about your monthly payments, you can look up calculators for trust deeds online. A trust deed calculator will be able to give you an approximate calculation of how much you can in monthly payments towards your creditors depending on how much debt you have. 

Not only that but a trust deed calculator can also tell you how long your trust deed is going to take in order to be complete. 

If you’re a homeowner and/or have other valuable assets, then they will be handed over to your trustee who will judge whether they should be sold off in order to raise money for your debt repayments or not. You might be able to set up a type of protected trust deed online which would not include your home. 

Please note that a trust deed in Scotland becomes a protected trust deed if the majority of creditors are happy with its terms. A protected trust deed would mean that your creditors would not be able to take any further legal action against you in order to recover money from you. It would be legally binding.

Once your monthly payments are in order, your IP can call an online meeting with your creditors and present the terms of your trust deed to them. 

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What is the difference between a Deed of Trust and a Trust Deed?

A trust deed in Scotland is a voluntary agreement between you and the people who you owe money to (your creditors). It states that you will make affordable monthly payments towards your debt for an agreed-upon period of time (typically 4 years) and after this time, any remaining debt that you have will be written off. 

It’s a process backed by the Scottish government that is easily accessible to Scottish residents that have debt of £5000 or more. 

Albeit similar in name, a deed of trust is something completely different and not related at all to a trust deed

A deed of trust is a significant record (governed by The Trustee Act 2000) in which trustees are delegated to hold the property for beneficiaries.

A Deed of Trust can be utilized to state how a property is owned. 

It’s very easy to get confused when you’re researching information regarding trust deeds on the internet. Hence, be vigilant and ensure you’re not reading up on the wrong information. 

Is a Trust Deed a good idea for you?

Whether or not a trust deed is a good idea for you depends entirely on your financial situation. 

Many people prefer trust deeds when they know they’re going to be able to get a hefty chunk of their debt written off. 

On the other hand, if you have unsecured debts that are much lower and can be dealt with in a shorter amount of time than 4 years, then maybe a trust deed would not be the right option for you. 

Thus, you could make this decision depending on the amount of money you owe. 

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Which debts can you include in a Trust Deed?

A trust deed can include most types of unsecured debts and some secured debts.

The types of  debts which can be included in a Scottish Trust Deed are:

  • Rent arrears (although it may be a problem if you are still living in the property)
  • Shortfall on mortgage or car hire purchase, following repossession
  • CSA arrears (you must pay ongoing maintenance)
  • Personal guarantees, if crystallised
  • Outstanding car parking charges
  • Overpaid tax credits due to HMRC
  • HMRC debts (PAYE, NIC & VAT)
  • Overpayment of DWP benefits
  • Personal loans
  • Council tax debt
  • Credit card debt
  • Overdrafts
  • Store cards

Which debts cannot be included in a Trust Deed?

The types of debts which cannot be included in a Scottish Trust Deed are:

  • Secured loans, mortgages, hire purchase and any other loan secured on a property, motor vehicle, or home furnishings
  • Fines which have been issued by the Court
  • Debts which have been obtained fraudulently
  • Crisis loans from the DWP’s Social Fund
  • Student loans
  • Child Support Arrears
  • TV Licence Arrears
  • Mortgages

Conclusion

A trust deed is definitely a great debt solution for Scots and there’s a ton of information you can find related to it online.

Not only that but you can even set up a trust deed for your debt(s) from the comfort of your own home. Just be sure to only deal with trustworthy agencies that are authorised and regulated by the Financial Conduct Authority (FCA).

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