A Scottish Trust Deed can provide people with help when they need it most, sorting their debt out and allowing them to pay it off in manageable amounts each month. It can be a lifeline for many households, but some people remain wary of trust deeds because they worry of the effects it will have on other areas of life. One of these is employment, with many wondering if having a trust deed will impact their job, or any jobs they might apply for in the future. However a trust deed might not be as detrimental to your chances of employment as you think.

An employer doesn’t always have to know that you have a trust deed, and unless your employer is one of your creditors then it’s highly unlikely they’ll find out. Your name will be published in the Edinburgh Gazette along with thousands of other notices, but unless they’re trawling through it from cover to cover it’s doubtful that they’ll realise. However there are some professions which will come with a contract of employment stating that you are not allowed to be sequestrated or involved in a form of insolvency. These professions include the Police, Fire Service and sometimes the Prison Service. Positions where you’re handling money might also have concerns if you have a trust deed.

This is because you’ll have access to a large amount of information and money, so unmanageable levels of personal debt might not show you in the best light. If you are involved in any of these professions then it’s recommended that you check your contact of employment to see the specific rules that apply for you. If an employer finds out that you have a trust deed then it’s unlikely that you’ll lose your job, as in most cases it doesn’t impact your ability to perform in a role. If you’re involved in one of the positions discussed above then it would be worth having a confidential talk with someone at your work who can tell you the impact a trust deed will have.

When it comes to getting a new job, a trust deed will only affect your chances of employment if you’re applying for the Police, Fire Service, Prison Service, or jobs where you’ll be handling money. You might also find it hard to get work if you are a self-employed contractor applying for council contracts, as you may have to go through financial checks along with other contractors in your team.

Before you apply for a trust deed it’s worth getting advice about employment, so that you can know for sure whether your job will be affected and if your chances of finding a new job will be impacted. At Council Tax Advisors we make it our mission to provide free, impartial debt advice that covers a wide range of problems. Contact a friendly member of our team today for expert guidance over trust deeds.

A protected trust deed is the equivalent of the IVA (Individual Voluntary Arrangement) in Scotland. It is a legally governed procedure where you can begin to repay you debt over a specified period of time. Most of the monthly payments will be based on what you can afford and after the period of your Trust Deed has ended, any remaining debt is written off. The popularity of trust deeds are increasing all the time due to how effective they are at eliminating debt problems. A trust deed is a fast way of getting out of debt with a minimal amount of stress. Your creditors will want you to deal with debt the long and hard way, so they can get back as close to 100% of what you owe them. A trust deed eliminates the demoralising and overwhelming process of getting out of debt slowly, with affordable payment periods.

Write off some of the debt

A trust deed will be able to help you write off up to 70% of what you owe, and help you to get out of debt faster. Many debtors struggle with interest rates and charges that steadily pile up against them. With a trust deed, your creditors won’t get a substantial proportion of the interest and charges they have heaped on your original borrowings, and they won’t be able to take any further actions against you. A trust deed also costs less to administer than a sequestration, which means a trust deed will avoid adding to your debt problem.

Short repayment period

A trust deed usually takes around 3-4 years to complete compared to a debt management plan. These other plans usually take more than five years to complete entirely. A trust deed aims to ensure that you are debt free, faster. After the repayment period has ended, any remaining debts that are protected under your trust deed will effectively be written off. This will help to ensure that when your trust deed is over you will have a better chance of staying out of debt.

Trustee

If you choose to get out of debt using a trust deed, you will have to have the necessary paperwork signed and your trustee will try to protect your trust deed. With a trustee, you have an experienced professional on your side that will have an in-depth knowledge of finance and law. The trustee will be able to offer advice on how to deal with unexpected financial events and how to keep out of debt. They are an invaluable tool when it comes to using a trust deed for getting out of debt.

Creditor Approval

When you apply for the trust deed, your creditors will be given five weeks to object to the offer of how much money you can pay them each month for three years. If they fail to accept, or reject the offer, or if less than half of them object, you can still start making the proposed payments. Protected status will only be refused when creditors representing a majority in number or at least 33% of the total debt object in writing. After your trust deed is protected, your creditors will no longer be able to contact you directly, making it much easier for you to get out of debt without feeling harassed.

Financial skills

Trust deeds teach important money management skills, which means you will be able to come much more financially aware after your trust deed is completed. During a trust deed your spending will be tightly controlled and monitored by your trustee, which will help you to learn valuable budgeting and money management skills that will stay with you for life.

If you need any advice about trust deeds, debt, or money management skills – contact Council Tax Advisors today. We are a community interest company who are committed providing help and support to those who are struggling with debt.

For people falling into debt it can be difficult to remain positive when receiving constant reminders of your situation from creditor’s calls or the letters they send directly to you. It can be a distressing time and suffering in silence can only worsen things. At Council Tax Advisors we help people around the country with free and independent support for a wide selection of debt problems. It should not matter how you’ve fallen into the red, we are committed at finding realistic solutions to get your financial stability back once and for all.

Getting court orders is an unfortunate consequence for people struggling with their finances. Creditors will often apply to the judicial branch in order to speed up repayments and this let further panic ensue for people frantically trying to get sufficient funds together. Scottish summary warrants are used by local authorities with the sole intention of getting money owed to them as quickly as they can. To speed this process up they will make applications to courts about repayments.

The demand for payment will usually have a time limit of 14 days and Her Majesty’s Revenue and Customs (HMRC) cannot take action against you until this charge has been served and the time limit expires. This is known as diligence. Diligence can be used against people in financial difficulty in numerous ways. Your money in a bank or building society account can be frozen and even released to the creditor, along with an earnings arrestment. This makes your employer take deductions from your earnings then pay this to HMRC. This consequence can be very damaging to a person’s morale and pride, so contact Council Tax Advisors to avoid this if you’re worried about your arrears.

Sheriff Officers such as Scott and Co also have the power to seize goods that are outside your home and then sell them to pay HMRC. This adds greater fear to people in debt because they will be in for a nasty shock when one of their items disappears. Another way creditors can get money off you is through an exceptional attachment order. This gives officers the authority to break into your home and seize goods in order to sell them on. Perhaps most dramatically, you can be stopped from selling your property or taking our more borrowing on it.

Potential action from enforcement agents and the like can increase stress levels and place greater pressures on your finances. Contacting our helpful and effective team at Council Tax Advisors will not only prevent bailiffs from entering your home, but it will give you an affordable repayment plan that will be effective in the long run. We are only interested in helping people change their financial fortunes around for the better. Remember – there’s no risk and no catch when you come to us, so get in touch with us today.

Unemployment figures may indicate that more British people are now working compared to 2013, but this does not necessarily mean that citizens are financially stable. Having a regular job does not make paying for utility bills, rent and the overall cost of living much easier for an alarming number of taxpayers. Of course, employment is welcome, particularly in such a harsh economic climate, but figures should be taken lightly due to a high number of Britons remaining in the red.

Falling into debt problems causes real anxiety and panic among people of various age groups around the UK. Quite often people in this predicament can feel helpless, with no hope of regaining a strong economic standing. Fortunately, perceived hopelessness can soon be eradicated when you contact us at Council Tax Advisors. Receiving free and independent advice should not be underestimated – we only have our client’s best interests at heart unlike payday lenders and debt collection companies.

An option for Scottish residents struggling financially is signing up to a trust deed. People living in Scotland can typically pay off debts totalling £5,000 within four years without losing their home or car if they make the agreed regular repayments. You must have a regular income to make sure your occupation of a flat or house is unaffected by a trust deed. If you make all the agreed payments to creditors then you’re protected from losing your home.

When people sink into debt they can lose everything. Possessions, however precious some people view them, are quite frankly of minor importance to your property where you may have lived for years or where you’re raising children. Losing this is not an option – with the spiralling cost of the UK housing market it can be difficult to quickly find a replacement home. For this reason, getting a trust deed may be your best option to protect vital belongings.

Children will understand that they can’t afford a new HD television, but will be less understanding and sympathetic if you’re kicked out of a home. If you have a regular income then this can be avoided. Your eligibility to getting a trust deed is not dependent on whether you’re a private tenant, homeowner or council tenant. Trust deeds just cover your unsecured debts – arrears arising from personal loans, credit cards along with other things.

If you do not pay the agreed repayments then you put yourself at risk of sequestration and this includes prized assets such as your property. Success is not guaranteed, but if you can afford the repayments then you should be able to write off your debts without burdening yourself and loved ones with eviction. However worried you are about debt, it can be solved and contacting Council Tax Advisors is an effective first step in combating the problem.

We are committed to helping anyone with debt problems, whatever the cause. We recognise that there can be several reasons why people fall into the red, but don’t worry – call us and we’ll find a solution for you. A trust deed may be your best course of action, but we are adept at finding several other options for you to turn your finances and life around.

When faced with an overwhelming amount of debt, you may already be considering a sequestration. However, a Trust Deed could be an alternative way for you to tackle your debt. If you have at least £5,000 of debt from two or more creditors and you have a regular source of income, a Trust Deed may be an effective product for you. Before making any financial decisions, it’s always important to understand the pros and cons. Council Tax Advisors has comprised a list to help you make the best decision. If you are still unsure, CTACIC can provide free and impartial debt advice to help you make the right decision.

Pro’s
Avoid creditor hassle

Unsecured creditors who have agreed to the terms and conditions of a trust deed are required to leave you alone as soon as it is protected. Your trustee will deal with all contact from your unsecured creditors from this point on. They will distribute your payments among them according to the terms of your trust deed.

Avoid interest and charges

Any charges and interest from your unsecured debt are usually not applied, so long as you abide by the specific repayment plan. If your trust deed is protected, even unsecured creditors cannot instigate any proceedings against you.

Financial stability

Normally, a trust deed will only last for around four years. This will alleviate the weight of debt that is carried for years on end. A trust deed gives you an opportunity at a clean slate.

Disposable income will be used to pay creditors

Living expenses such as your rent or mortgage, bills, food and work-related travel costs will take priority in your trust deed budget. This means you will never have to go without in order to make your repayments. However, luxuries such as gym memberships and holidays will not be allowed.

Negotiation

You have the option to negotiate to keep your home rather than sell it. This is a huge fear people have to deal with when facing a sequestration. Being forced to sell a family home and move into rented accommodation can be incredibly distressing. A trust deed can prevent this from happening.

Carry on trading

If you own a business, or you are a sole trader, you will still be able to carry on trading. You may even be able to obtain very small amounts of credit, unless the terms of your trust deed stipulate otherwise.

Con’s
Damaged credit rating

One of the biggest issues of trust deeds is the fact that it will inevitably affect your credit rating. There really is no way to avoid this, although it is important to remember that your credit record is already being affected if you have missed payments on your debts.

Sell or re-mortgage

There is a very real possibility that you will have to sell or re-mortgage your home. This usually applies to a main residence if it has little or no equity. There are several options to avoid having to sell, however the trust deed will certainly need you to sell all high value items to raise the funds to pay your creditors.

Public record

Your trust deed will be recorded on the Register of Insolvencies, which is in fact a public record. If someone knows where to look, they will be able to find out about your trust deed. However, this is highly unlikely unless they are specifically searching for the information.

Risks of missed payments

If you miss a payment during your trust deed agreement without contacting your trustee for a discussion beforehand, you may find that the trust deed will fail. This will mean your unsecured creditors are entitled to pursue you for sequestration again.

Does not cover secured debts

Only unsecured debts will be covered by a trust deed, so any loans that are secured to your home or through hire purchase agreements will not be covered.

Does not cover new debt

Running up any new debts during your trust deed agreement means that any new creditors will be able to pursue you for your new debts. Your existing trust deed does not cover debts incurred outside of the agreement.