Trust deed advice

[dickturpinn]

Looking for some advice on Scottish Trust Deed

 

I have been dealing with CCCS with my creditors for last 2 years and been paying a few bob but my estimated debt wont be paid for another 15 years on current payment plan

 

I have about 20.000 grand in debt but i probably have that in equity in my home

 

the answers or advice i am looking for are

 

1.After the 3 years on a trust deed how long would it be before i could get to a reasonable credit rating(I know my credit score is rubbish at moment anyway)

 

2.Do you have to sell your house if you enter trust deed to release equity for creditors

 

3.Would my current mortgage lender have to be informed and would this affect my mortgage at present with them

 

None of my debts are secured just the usual loans,cc and overdrafts

 

or am i better off sticking with CCCS and waiting till i am back on my feet a bit and offering payment offers for Debts

 

Many Thanks

 

D

 

any advice would be great thanks

[maroondevo52]

Hi,

 

There's info in this National Debtline 'link' which will answer your questions..............

 

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=21_trust_deeds

[Crocdoc]

If you have equity of that level in your home ,DO NOT TOUCH TRUST DEED WITH A BARGEPOLE AS THE EQUITY WILL NEED TO BE RELEASED . I dont't know your circumstances, however DAS may be an option as it protects the property, cancels out interest and charges upon acceptance. It can also be set up free by one of the charitable advice agencies. Check it out on Money Scotland .Gov website.

[maroondevo52]

Adding to Crocdoc's advice................

 

 

Under the terms of a Debt Arrangement Scheme, you will commit to a debt payment plan (DPP) which allows you to repay your debts based on your disposable income. A DPP can last for any reasonable length of time, depending on the total debt that you owe and how much you can afford to pay.

 

Advantages of using a Debt Arrangement Scheme,

 

Keep your house and car, Legally freeze interest and charges, A DAS uses Government legislation, Repay your debt based on YOUR affordability, No credit checks required, DAS is not a loan

 

The Disadvantages of using a Debt Arrangement Scheme,

 

Total liable debt is repaid in full, Your credit rating will be affected, The length of time repaying DAS may take several years, Cannot be self-administered, Only available to residents of Scotland.

 

 

 

Only A DAS approved money advisor can setup your DAS.

 

The number of people using a DAS in Scotland has increased in recent years, most notable due to increased numbers of people seeking debt help and rising cost of living.

[sequenci]

I'm with Crocdoc. Whilst it's possible to exclude the property from a Trust Deed most creditors won't agree to be included. A DAS is very likely to be the best route forward here.

[Crocdoc]

I'm with Crocdoc. Whilst it's possible to exclude the property from a Trust Deed most creditors won't agree to be included. A DAS is very likely to be the best route forward here.

 

I agree that in cases of low equity technically it is possible to exclude the property , however I have never seen it happen in pracatice. Based on recent Scottish Government consultation I am of the opinion that Trust Deeds will in the near future become a thing of the past as they only appear to benefit the Insolvency Practitioner. To be honest I cringe at some of the misleading glossy adverts that appear on television.

[dickturpinn]

Ok thanks for reply guys i am on a DMP with CCCS on a yearly review with interest frozen and the debts are getting passed around each year to other debt companies

 

Is a DAS the same as a DMP

 

I was only asking about a trust deed as someone from a debt company phoned and said i should go on a trust deed and keep house and be debt free in 3 years

 

I told him that he was talking rubbish as i had equity in my house but he was adament in what he was saying

 

These guys dont care about your personal circumstances they just want the commision i think

 

I will stick with CCCS at moment

 

thanks

[Crocdoc]

A Debt Arrangement Scheme is not Debt Managemnent although it is often called a Debt Payment Programme. The system was introduced by the Scottish Parliament as an alternative to Debt Management and Trust Deeds. As I mentioned earlier it can be set up through agencies such as CAB entirely free of charge. The diference is that unlike DMP you are legally protected from any enforcement action from creditors so long as you abide by the terms your assets including property is also protected. In addition you do not pay monthly fees as you will be in DMP, you make monthly installments to a payment distributor and their fees are deducted from the creditor.

 

Should you choose to go down this route, I would suggest that you ensure that you use one of the free agencies and not the commercial organisations who will charge fees. A list of approved money advisors can be found at Money Scotland.Gov.

I hope this information is of assistance

[Crocdoc]

Just to correct my previous post, you will not of course pay fees with CCCs

[sequenci]

I agree that in cases of low equity technically it is possible to exclude the property , however I have never seen it happen in pracatice. Based on recent Scottish Government consultation I am of the opinion that Trust Deeds will in the near future become a thing of the past as they only appear to benefit the Insolvency Practitioner. To be honest I cringe at some of the misleading glossy adverts that appear on television.

 

Totally with you. I think section 10 Trust Deeds are bit of a white elephant, I'm sure you'll agree!