Welcome to Wallet Doctor: the UK's dedicated banking, debt and financial community. Use this site to help give first aid to your finances!

Have you been mis-sold PPI?

expertviews.gif

Have you taken out a loan, credit card or mortgage? If so you may have been mis-sold Payment Protection Insurance (PPI) and you may be entitled to claim £000's in compensation. Click here to find out more
Understanding Trust Deeds

The Trust Deed is a legal process like that for an IVA and in order to qualify you must actually be resident in Scotland. The Trust Deed provides a similar remedy to an IVA in that it has been specifically designed to help Scottish consumer debtors restructure all of their unsecured borrowings in order to avoid bankruptcy.

A Trust Deed is designed to last for a fixed period of 36 months, whereas an IVA usually lasts for 60 months. At the end of the Trust Deed period all remaining debts are completely written off and the debtor is then entirely legally debt free.

Features of Trust Deeds

  • A Trust Deed will allow you to avoid sequestration (Scottish Bankruptcy).

  • The Trust Deed is dealt with more privately unlike a bankruptcy which is formally published.

  • All interest and further charges on the debts will stop.

  • All dealings with creditors and other third parties are dealt with by the appointed Insolvency Practitioner.

  • Trust Deed restructures usually only lasts for a fixed period of three years at the end of which the debtor is completely debt free.

  • In most circumstances the debtor would need to have a minimum of £10,000 unsecured debts and little or no property equity with which to repay the debts.

  • A Trust Deed cannot override any Arrestment (an attachment of earnings) which would need to be paid.

  • A simple Trust Deed can be proposed and become "Protected" in 5 weeks.

  • Only an Insolvency Practitioner based in Scotland would ordinarily be able to complete the Trust Deed negotiations.

  • Failure to complete the payment obligations under a Trust Deed could very well result in bankruptcy.

Bankruptcy in the UK (excluding Scotland where slightly different legislation applies) can be avoided by entering into an IVA. Even if a debtor has recently been made bankrupt then there are circumstances where an IVA can retrospectively get the personal bankruptcy annulled. Alternatively if a debtor has entered into an IVA and willfully stopped making the agreed payments or failed to disclose to creditors some material fact in his Proposal (usually hiding assets) then a bankruptcy usually swiftly follows.

 
[ Back ]

Debt Management Plans

A Debt Management Plan is an informal process of negotiating with your creditors to:

  • Freeze interest
  • Negotiate payment terms
  • Provide peace of mind that you are taking action against your debts

 

Bankruptcy

Bankruptcy was traditionally seen as the ultimate financial humiliation for people with debt problems. but more recently people declare themselves bankrupt for much smaller sums of money. In fact, since 1997 when labour came into power there has been a 100% increase in bankruptcy. Bankruptcy

 

IVA's

The offical debt repayment plan. Reduce your debt by upto 70% , freeze the interest and get legal protection from the companies you owe. IVA's

Trust Deeds

Trust Deeds are dealt with more privately unlike a bankruptcy which is formally published. All interest and charges will stop and after 3 years you are debt free!  Trust Deeds