A trust deed to an arrangement between your creditors and yourself. Here, you will state an amount you can pay to clear your debts in due time. It is a powerful and legal tool that will help you get back to financial stability. A trust deed is perfect for people who are in too much debt and are struggling to repay each month. FInd out if you are eligible for a Trust Deed at Carringtondean.
How Long Will It Take To Clear Debts Using A Trust Deed?
An individual voluntary arrangement takes 5 years. A trust deed, on the other hand, takes 36 months (3 years). However, the repayment period can be extended to 48 months depending on your affordability. Once you agree to a trust deed, you need to pay a specific amount every month during the 36 months. After the repayment period lapses, your creditors are bound by law to write off the remaining debts.
Will I Continue Paying Interest And Charges?
No. After signing up for a trust deed, any charges or interest on your debts will be frozen. No further legal action will be taken against you.
What’s The Cost Of Setting Up A Trust Deed?
It’s free to set up a trust deed. It is designed to help you get out of debt instead of increasing it. You will only be asked to pay a designated amount every month that you agree upon with your trustee or any equity in case you are a homeowner to clear your debts.
Who Pays For A Trust Deed?
Once you sign up for a trust deed, your creditors actively agree to receive fewer amounts back. That way, the chosen trust deed company fees will be paid by the creditor who manages the arrangement. Any exceptions to the rule will be cleared up before the trust deed is set up.
Is A Trust Deed Suitable If I Have Any Property?
Well, it comes down to if there is any equity value on your property or not. For instance, if the value of your home increases to an extent that allows you to repay all your debts, you might be forced to pay an extra amount to cover the fees paid by the trustee.
How Long Does It Take To Arrange A Trust Deed?
An individual voluntary arrangement takes 2 to 4 months to arrange. However, most trust deeds take 2 to 4 weeks to arrange. Next, it will be shared with your creditors for approval. This process takes a maximum of 2 weeks.