Trust Deed Rules – What You Need To Know 2022
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Trust deeds could be the best solution for your debt problems. However, many people who apply for a trust deed are unaware of the rules and regulations.
Being unaware of the legal restrictions and requirements could lead to problems in the future. Which is why I have compiled this complete guide. It will help you understand the constraints and criteria for a trust deed.
Read the guide carefully, it has FAQs and everything you need to know.
How much debt do I need to enter a trust deed?
You need to have a minimum amount of £5,000 worth of unsecured debt. However, if you have debts less than this, your trustee could suggest an alternative debt solution.
Do I have to inform my trustee if I receive a windfall?
Yes, it is crucial that you inform your trustee about any sort of increased income. This could be a lottery or a windfall.
If you fail to do so, you could find yourself in a risky situation.
Can I apply for a moratorium in a trust deed?
You could apply for a moratorium through the Accountant in Bankruptcy. This will prevent your creditors from forcing you into making payments.
However, a moratorium only lasts for 6 weeks. Moreover, you can only apply for a moratorium once in 12 months.
Can I get credit in a trust deed?
You could be able to get credit during your trust deed. However, this could be difficult in the first two years after you have been discharged.
What are the rules of a trust deed?
If you are in a trust deed you have to follow the rules and regulation.
It is crucial that you make your monthly payments on time.
Some trust deeds may suggest that you can not be a company director. However, you could speak to your trustee and get permission.
In case you receive new money or property, you have to inform your trustee about it.
Moreover, it is essential you cooperate with your trustee. Otherwise they could force you into a sequestration.
How do I know I am eligible for a trust deed?
The trust deed criteria is simple.
You are expected to either be a Scottish resident or have lived in Scotland for over a year.
Moreover, you should have unsecured debts of at least £5,000.
Furthermore, it needs to be demonstrated that you have been unable to pay off your debts for a significant period of time.
What is the role of a trustee in a trust deed pension scheme?
Your trustees act separately from an employer.
All beneficiaries and trust deed schemes are looked over by your trustees.
They ensure that the pension schemes are run properly. Moreover, they make sure that the members benefit from the schemes they have uptaken.
Can I make amendments to my trust deed?
You could be allowed to make an amendment to your trust deed under certain conditions.
The conditions include:
- Your financial situation has improved and you want to pay off your debts easily.
- Your financial situation has worsened and you are now unable to make monthly payments.
- You have received a windfall.
- You want your trust deed to become protected.
It is important to understand your trustee will only make the changes if your creditors agree.
Can I apply for a trust deed if I run my own business?
According to the trust deed regulations, you might not be allowed to run your own business.
Your trustee could arrange someone to run your business for you for a certain period of time.
However, if your financial condition worsens, you could be forced into selling your business.
Frequently Asked Questions (FAQs)
I understand reading through the regulations could be overwhelming.
However, the advice mentioned here will help you make informed decisions about a trust deed.
The guide will help you take well informed decisions so you can avoid legal consequences in the future.
Follow the tips and guidelines carefully. Feel free to contact us for more information.