Trust Deed Help and Debt Advice

Debt advice from qualified debt experts is essential to become debt free and start a life without debt. To do this you need to know what the right debt solution for you is. This can range from general money advice through to bankruptcy. In the middle is a debt solution called an IVA for people living in England, Wales or Northern Ireland or a Trust Deed for people residing in Scotland

Trust Deed Debt Advice

A Trust Deed (also known as a Protected Trust Deed) is a legally binding agreement between an individual and their creditors. A licensed Insolvency Practitioner (known as the Trustee) will be responsible for your case.

The Trust Deed enables individuals who cannot repay their debts to reach an affordable monthly payment towards their debt in return for the remaining debt to be written off. This payment is based on your income and expenditure each month.

The Trust Deed will be in place for a specific period of time - usually three years. Once the agreed period of time is over, if you complete the Trust Deed to your Trustee's satisfaction your remaining debt will be cleared at the end of the solution, allowing you to be debt free and start again.

What do I need to enter a Trust Deed?

To enter a Trust Deed you need to have :

- At least £10,000 unsecured debt
- Full time employment
- Be able to repay at least 10% of the money you owe over the 3 years
- Pay at least £150 a month to your debt (this is the amount you can afford after paying essentials such as house bills etc but before paying your creditors)

What are the advantages of a Trust Deed?

- You no longer have the pressure of dealing with your creditors as the insolvency company will do this
- It's usually more flexible and less costly than Sequestration
- You can retain public positions and stay in employment. In some cases you may lose your job if you enter Sequestration.
- You may be able to remain as a director of a company
- Your credit rating will not be as harshly affected

The right debt advice

It can be difficult to understand what is the right debt solution for you. There are a number of debt solutions and whilst only repaying 10% of the money you owe may seem like a great debt solution, it comes with a warning. It will have a negative impact on your credit rating and is not a solution to enter lightly. Always be sure you get all the information and ask questions before entering a Trust Deed.

Debt advice should always be free. The right debt solution for you will be based on your personal and financial situation. Your income, expenditure and level of debt is important to determine if it's the right debt solution for you. If you are speaking to a UK money advice company ensure they have a consumer credit licence, qualified experts and are caring towards your situation.

The negative aspect of companies offering money advice and help is that they force people down the route of a debt management plan because that is all they offer. This means that you could be in a plan for over 60 years without being free of your financial problems. Be sure to ask when you will be able to start again financially.

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