TRUST DEEDS. WB Debtcare

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1 WB Debtcare TRUST DEEDS WYLIE & BISSET LLP WB DEBTCARE Freephone: Telephone: Website:

2 A guide to your Trust Deed with us WB Debtcare is the Consumer Debt Solutions arm of Wylie & Bisset LLP. We are regulated by the Institute of Chartered Accountants in Scotland. Our Insolvency Practitioners are Licensed by the Insolvency Practitioners Association, and we are proud to act as the number one Provider of insolvency services to the Scottish Government. We are members of Money Advice Scotland and subscribe to their DAS code of practice. Our Consumer Debt Solutions team operates throughout Scotland and is coordinated from our office in Glasgow. A Trust Deed is part of a suite of options available to someone in financial distress our advisors can provide you with details of all the options available to enable you to make an informed choice of how to proceed. A consultation can be arranged at a time to suit you, in person at a convenient location, or by telephone. You may also visit our website ( or browse our other publications for more information. To arrange a free consultation, simply telephone

3 What is a Trust Deed? Trust Deed is an agreement between you and your Trustee which A gives your Trustee authority to deal with all the companies you owe money to (your creditors) on your behalf. One of our Insolvency Practitioners would act as your Trustee and put forward a proposal to your creditors on how to deal with your debts. The proposal is based on how much you can afford to pay on a monthly basis towards your debts, and how best to deal with any assets (if any) you have. It is important to remember that the Trust Deed covers all your debts and all your assets, and so we will agree with you how much you can afford to pay towards your debts and how to deal with any assets you have before you commit to signing a Trust Deed. Once your Trust Deed becomes protected, the companies you owe money to (creditors) are not legally allowed to take action to recover the outstanding debt from you. Your Trustee will pay creditors what he can from the funds ingathered into the Trust, and the creditors must write-off the balance of funds they do not receive at the end of the Trust Deed. Your Trust Deed will generally last between 4 and 5 years. 3

4 When would a Trust Deed not be right for me? There are no hard and fast rules, we assess everyone as individuals, some of the things we watch out for are: Can you repay your debt any other way? Is this the correct insolvency process for you? (See our website for details of other insolvency options.) If you own your house, can we find a way to ensure that you don t lose it? Is your assessment of your living costs realistic and fair? Can we see any way that your circumstances may change that would impact on the Trust Deed? Do all my creditors have to agree to my Trust Deed proposal for it to work? No your creditors do not all have to agree to the Trust Deed for it to work. The law states that provided your Trustee correctly follows the Trust Deed Protection Procedure, then unless a certain amount of your creditors actively object to the Trust Deed, the Trust Deed will proceed as if all creditors have agreed to the Trust Deed. This is the case even if creditors do not respond to the Trust Deed Proposal we put forward. 4

5 Which Creditors can stop my Trust Deed being protected? Unless objections are received within a five week time limit from more than half of the number of your creditors, or more than one third in combined value, then the Trust Deed will become protected and backed by government legislation (the Protected Trust Deeds (Scotland) Regulations 2013). At WB Debtcare, we have been helping individuals find debt solutions for over 30 years. Our experience and understanding of both your needs and creditors expectations means that we are able to structure proposals leading to Trust Deeds successfully becoming protected. We are proud of our track record and reputation in this area. What is the timescale to having my Trust Deed Protected? F rom signing the Trust Deed to having it registered as protected takes about 7 weeks. A notice of the Trust Deed is placed in the Register of Insolvencies, creditors are contacted and given 5 weeks to object to the Trust Deed, and thereafter the Accountant in Bankruptcy (AIB) registers the Trust Deed as protected. The following timeline can be followed: 5

6 Timetable to having my Trust Deed Protected. Weeks 1 Sign Trust Deed 1 Register of Insolvencies and Creditor Notification 2-6 Proposal considered by Creditors 7 Registration of Trust Deed with AIB weeks 2-6 (5 week objection period) Protection What will happen to my home? If you own your home then the worry of losing your house may well be what has prompted you to take advice on your financial position. We recognise this and how your home is dealt with will underpin the basis of whether a Trust Deed is the correct option for you. The Trustee only has an interest in any equity in your home, and provided the circumstances are appropriate, this equity can be properly managed (for example by an extension to the Trust Deed duration, or by the exclusion of the home from the Trust Deed). Ask to see one of our case study packs to see some of the possibilities available. 6

7 What will happen to my car? This largely depends on whether your car is owned or on Hire Purchase, what its value is, and how alternative travel arrangements would impact on your family budget. The key to a successful Trust Deed Proposal is to strike the correct balance between your interest in retaining your car and the financial return to creditors our Trust Deed proposals are structured with that in mind. Ask to see one of our case study packs to see some of the possibilities available. How are the Trustee s Costs paid? O ur costs and fees are deducted from the money we accumulate in your Trust Deed fund, and are subject to the agreement of your creditors. We will not charge you for your initial consultation with us. We operate as an independent firm with one of the lowest Insolvency Practitioner cost structures - this gives us great flexibility within our Trust Deed proposals to ensure that an acceptable return is made to creditors. 7

8 How will I benefit from my Trust Deed? One single manageable monthly payment Creditors cannot take further action against you Your Trustee will deal with your creditors An end to demand letters and calls Legal debt relief giving you a fresh start Start planning your future now For further information Wylie & Bisset LLP WB Debtcare, 168 Bath St, Glasgow, G2 4TP Freephone: contact@wbdebtcare.com Web: