Quick and Easy Fix for Your Failed Trust Deeds

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Quick and Easy Fix for Your Failed Trust Deeds
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• Trust Deeds are a legally binding agreement
  between you and your creditors to make set
  repayments over a period of four years. At the
  end of this period your unsecured debts would
  typically be written off. When they work, with
  all repayments made, Trust Deeds are an effective
  tool for helping people climb out of debt. But
  what happens when Trust Deeds fail? If youre in
  this situation, we want to begin by saying this
  there are still debt solutions out there that can
  help you. Lets guide you through the process.
• Trust Deed not yet failed? Heres what to do

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• If youre struggling to keep up with your Trust
  Deed repayments, its critical that you speak
  with your advisor as soon as possible. They are
  there to help you and may even be able to
  renegotiate lower repayments if your
  circumstances have changed. You may also be
  eligible for a payment break of one month if you
  can show them that it would help you to continue
  with the remaining repayment schedule.
• However if your Trust Deed has already failed,
  youll need to seek an alternative debt solution.
  Lets now look at what your options may be.

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How to quickly and easily fix your failed Trust
Deed

• A Trust Deed fails if you stop paying it and
  default on your agreement. When your Trustees
  feel that you cannot or will not continue with
  repayments, they then terminate your Trust Deed.
  This will mean that
• Your creditors can begin to contact you again
• Your Trustees may petition the court for you to
  enter Sequestration (e.g. the Scottish equivalent
  of bankruptcy)
• Any fees and interest that were frozen as part of
  the Trust Deed will no longer be frozen, and your
  total debt could begin to climb again
• Your creditors may believe that you have no
  intention of repaying your debts, and could
  petition for Sequestration, or they may apply for
  a wage arrestment or an alternative court order

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To avoid these actions, youll need to find a
suitable debt solution. Here are some of the most
common options

• Selling Assets
• If you own personal items, a vehicle or property
  that has significant value, you may want to
  consider selling these assets to reduce or repay
  your creditors.
• As the Trust Deed process takes stock of any
  assets prior to being set up, selling assets will
  only be a suitable option to a failed Trust Deed
  if youve suddenly acquired a valuable asset.
  Read more about Selling Assets as a debt
  solution.

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• Debt Management Plan
• A Debt Management Plan (DMP) is a form of debt
  solution that is similar to a Trust Deed in that
  it involves a repayment schedule thats created
  according to your income and expenditure.
• With a DMP, you would make monthly repayments to
  your creditors via a DMP debt agency, which acts
  as the middle man.
• However, unlike a Trust Deed, your creditors may
  not agree to freeze the interest and surcharges
  on your debt. Read more about Debt Management
  Plan as a debt solution.

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• Debt Arrangement Scheme
• A Debt Arrangement Scheme is a debt solution that
  is ran by the Scottish Government. It involves a
  Debt Payment Programme (DPP) which allows you to
  repay your creditors over a realistic time frame
  given your circumstances.
• Just as with a Trust Deed, your creditors are
  required to agree to your repayment proposal.
• To be eligible for this debt solution, youll
  need to have an income that either equals or is
  more than your monthly expenditure.

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• Sequestration
• Sequestration should be thought of as the final
  debt solution you consider. Like bankruptcy - the
  equivalent in other regions this debt solution
  has long standing implications on your credit
  worthiness. During the period of Sequestration,
  your details will be readily searchable on a
  publicly accessible online register. Even when
  the Sequestration is discharged after 12 months,
  you will still need to disclose your past
  Sequestration when asked by future creditors,
  insurers or employers.

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Thank You

• National Debt Help
• Beckwith House,
• 1 Wellington Road North,
• Stockport, SK4 1AF
• https//www.national-debt-help.co.uk