Frequently Asked Questions
Please see below Frequently Asked Questions people commonly ask us when enquiring about a Scottish Protected Trust Deed.
Can you get car finance after or during a Scottish Trust Deed?
Yes! There are rules during the plan going abotu car finance but after you are free to go for car finance without restrictions.
Does Scottish Trust Deed support you until you are debt-free?
Yes! We will be there to support you on your journey to get debt-free until your solutions ends at no extra cost.
We can apply for your earnings arrestment to be removed your case is Protected (around five weeks after you sign the proposal)
Will I be going Bankrupt entering a Trust Deed?
No! A Protected Trust Deed in Scotland has less restrictions than Bankruptcy or Sequestration as it is known in Scotland.
Can I keep my car on finance with a Trust Deed?
Yes! With a Scottish Protected Trust Deed you can continue to pay your hire purchase or car lease which will allow you to keep your vehicle so you can still get from A to B.
Will I lose my home if I have a mortgage entering a Trust Deed?
No! A Protected Trust Deed would only be accepted if you had more debt than equity so as long as you stick to the Trust Deed agreement and keep in touch with your Trustee then your home will not be at risk.
Do I have to contact all of my creditors?
No! With a Protected Trust Deed you provide your information about your situation and your supporting documents and the rest is done for you.
How much debt do I need to have to qualify?
You must owe at least £7,000 of unsecured debt to qualify for a Scottish Protected Trust Deed.
Can I get a mortgage after a trust deed?
Yes! The Protected Trust Deed after you are discharged after four years you will then be able to go for a mortgage after that period.
Can I keep my mobile phone contract?
Yes! You can keep your mobile phone contract with a Scottish Protected Trust Deed.
What debts can I include?
With a Scottish Protected Trust Deed you can include and consolidate all debts that are unsecured, there are some exclusions like SAAS student loans and criminal fines but most debts that are not tied to an asset can be included, for more on what debts can be included click here
Do I have to let my partner or work know?
No! The only people the insolvency practice will inform of your Scottish Protected Trust Deed is your creditors, the only time when a partner would know if you have joint debts as it will take your name off the debt.
Do I have to change my bank provider?
Yes if you have an overdraft or debt with that bank as they are allowed to close your account when your Trust Deed becomes a Protected Trust Deed. It is pretty easy these days to change bank with all the new providers and online availability.
What happens when I include my energy debts?
If you include energy debts into your Trust Deed such as gas and or electricity debts your account will go back to zero and you will only pay for your future energy use going forward, your provider may ask to install a top up meter in the future.
Can I get credit again?
Yes! During your Protected Trust Deed the rules are you can apply for up to £500 credit and once you receive your discharge letter normally after four years you can start to build up your credit from there.
Will a Scottish Trust Deed effect my credit file?
More than likely yes as under insolvencies your credit file will show the Protected Trust Deed listed. Obviously if you already have defaults for non payment on there it might not actually make your score anywise.
Will a Scottish Trust Deed remove my earnings arrestment?
Yes a Scottish Protected Trust Deed will remove any arrestments on your earnings or bank account, if already live this can be removed five weeks after your sign your Trust Deed proposal when the case becomes protected.
How long will the Scottish trust Deed go on my credit file for?
Six years, anything that appears will last on your credit file for up to six years.
Will a Trust Deed stop Sheriff Officers?
Yes! A Protected Trust Deed will stop any legal action such as Sheriff Officers, please note this will only apply when your case becomes Protected, normally five weeks after you sign your Trust Deed proposal.
What happens if I have rent arrears?
A Scottish Protected Trust Deed can be a useful solution if you have over £7,000 of debts in total and one of them happens to be rent arrears from a previous property or if your current property you rent from your local housing association or council. The Trust Deed will bring your rent account back to zero so you only need to pay your future rent, you can avoid eviction and keep the roof over your head and don’t have to worry about catching up with your arrears.
Can I include debts from HMRC or DWP?
With a Scottish Protected Trust Deed you can include HMRC and DWP debts even if you still get benefits and your benefit deductions can be removed also, for more on what debts can be included click here
Can I include council tax arrears?
With a Scottish Protected Trust Deed you can include council tax arrears and your council tax account will go back to zero, for more on what debts can be included click here
What happens if I receive inheritance during the Trust Deed?
When your Protected Trust Deed is proposed that will include and income and expenditure which will have a disposable income left over for the creditors and that is the amount you repay, if you notify your Trustee you have excess funds such as inheritance during the plan then they could demand extra to be paid into the solution as they must be independent between you are creditors and they must try to get the debts and fees paid in full where possible
How much can I write off with a Trust Deed?
We have all seen the adverts where you can write off 70 – 95% of your debts with a Scottish Protected Trust Deed. The reality is you will write off more the more debt you have and will also likely write off more the less you have at the end of the month to repay also. To get an idea of how much you could write off and what minimum repayments are click here
What expenses can I include in my case?
Your income is calculated and then your expenses are taken off and what is left is what you pay normally for four years, so you want to get all the expenses you can in right? You can include all major outgoings, rent/mortgage/secured loans, council tax, energy payments, insurances, car payments, mobile phone costs, travel/car costs, food/housekeeping/clothing, TV/Broadband, grooming costs, hobbies, entertainment and much more. Don’t worry all this will be covered along the way.
Do I need to find out all of my debts myself?
No! We do all the hardworking for you, you apply, you complete the quick online application you provide the easy to get supporting documents and we do the rest!
I am due in court for my rent arrears, can you stop this?
Yes! We have never had a case where we have not been able to but you must act quick and get your case officer what they need fast to make sure we get the paperwork to the right people in time.
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Your Expert Group, scottishtrustdeed.help, River Insolvency, ivahelper.co.uk are trading names of YEG Insolvency Limited which is Authorised Representative (FCA Number 987650) of Secure Financial Management Limited which is regulated by the Financial Conduct Authority.
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Secure Financial Management Limited’s FCA number is 550186. You can confirm this by checking the financial services register by visiting the FCA website www.FCA.org.uk?register or by contacting the FCA on 0800 111 6768. The registered office is 89 West Regent Street, Glasgow, G2 2BA. Registered in Scotland company no: SC393839. Registered with the ICO under the Data Protection Number ZA328512
Donna Forey is Licensed to Act as an Insolvency Practitioner in the United Kingdom by the Institute of Chartered Accountants of Scotland.
A formal debt solution may not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
*Debt examples are subject to creditor acceptance, payments are subject to individual circumstances, credit may be affected. Fees may apply.