Who can Apply for a Trust Deed

So, who can apply for a Protected Trust Deed ?

Establishing the answer to this question will be crucial to you if you are considering applying for a Protected Trust Deed as a debt solution, and hopefully this article will help you in deciding whether you should apply for a Trust Deed or not.

Firstly, you must be living in Scotland and have been doing so for at least the previous 6 months before you apply for your Trust Deed.

N.B. This, however, does not mean that the debt must have accrued in Scotland. Indeed, it could well be the case that the debt may have built up at a previous address in another country. It also is worth stating that you do not have to be Scottish to apply for a Protected Trust Deed either – Just so long as you have lived in Scotland for the previous 6 months before the Trust Deed application will be enough to qualify you.

Secondly, whilst technically there is no minimum debt level required to propose a Protected Trust Deed, it is generally accepted that an applicant should have unsecured debts of £10,000 or more.

Take this link to read what debts you can include into a Trust Deed.

Unsecured debts most often fall into one of the following types of credit facility:

  • Personal Bank Loans
  • Personal Bank Overdrafts
  • Store card
  • Mail Order Catalogues
  • Pay Day Loans
  • Doorstep Loans
  • Property Repossessions Shortfalls
  • Vehicle Repossessions Shortfalls
  • Buy now – Pay later Furniture Agreements
  • Buy now – Pay later Electrical Goods Agreements
  • Benefit Overpayments
  • Unpaid Income Tax Bills
  • Unpaid VAT Bills
  • Unpaid Utility Bills
  • Unpaid Mobile Phone Bills

This list is not exhaustive, and there maybe other types of credit which fall into the ‘unsecured’ debt category. If you are in doubt, you should contact My Trust Deed Adviser on 0800 088 7503 and we will guide you.

Take this link to read about what debts you can’t include into a Trust Deed.

Thirdly, it would be preferable if you owed your debt to at least 3 different creditors or, if not, 2 different creditors across 3 different lines of credit.

For example: With 3 creditors….

(Clydesdale Bank Overdraft = £1,500 + R.B.S. Loan = £8,000 + Barclaycard Visa = £2,500) = Total Debt = £12,000

For example: With 2 creditors and 3 lines of credit….

(R.B.S. Overdraft = £2,000 + R.B.S. Loan = £6,000 + Lloyds TSB Credit Card = £2,500) = Total Debt = £10,500

Once you have established that you have enough debt, owed to enough creditors, and assuming you have been living in Scotland for the last 6 month, then it is pretty sure your circumstances qualify you for a Trust Deed.

If you do not qualify for a Trust Deed, click here.

If you would like to discuss your circumstances with an experienced Trust Deed adviser, then please call our Free confidential Trust Deed Helpline on 0800 088 7503 where one of our advisers is waiting to help you apply for a Protected Trust Deed now.