1. A friendly and non-judgemental Personal Finance Advisor will complete a detailed telephone assessment of your personal circumstances – we call it a ‘Personal Consultation’. The assessment will look at areas such as your personal and financial situation, such as debts, the value of those debts, what creditors you owe money to, and conduct an income and expenditure review to determine what you can likely afford to pay towards your debts.
2. Your Personal Finance Advisor will assess what solutions are available and suitable for you. We will then discuss those options, recommend a solution and agree on the best route to address your debts. Depending on your circumstances, our advice will also be documented and provided to you before you decide to proceed with a trust deed.
3. We will then request various documents from you such as identification, creditor and debt documentation and bank statements. These can be collected in different ways, including collection by courier at no cost to you.
4. Your Personal Finance Advisor would check your paperwork and make sure a Trust Deed remains appropriate for you before transferring your documentation to the Insolvency Practice for the Insolvency Practitioner to begin work on your behalf. We will always notify you of where we were transferring you before any referral.
5. If at any stage before approval, it becomes apparent that the Trust Deed is not the best advice, you will be notified and will come back through to your Personal Finance Advisor at GW where alternative solutions will be explored and discussed.
6. If your Trust Deed proposal is successful then you will be looked after by the Insolvency Practitioner and their team for the duration of the Trust Deed.

*Where a Trust Deed/Protected Trust Deed is available, another debt solution may also be available and suitable for you.

WHAT ARE THE ADVANTAGES OF A TRUST DEED?

• Potentially a percentage of debt written off
• Interest & Charges frozen
• Easier budgeting and income management
• All creditors are treated fairly
• Defined timeframe for resolving debts included in the trust deed
• Experienced support
• No more contact or enforcement action if the trust deed becomes protected
• If necessary, you can still obtain credit, however, you may find it more difficult to do so

*A Trust Deed does not cover priority bills or some types of debt. See ‘What can be included in a Trust Deed’ for information on what debt can be included.

WHAT ARE THE DISADVANTAGES OF A TRUST DEED?

• There are restrictions on your expenditure when entering into a Trust Deed
• If you are a homeowner, you may need to release equity from the value of your home(s) to pay off debts. A remortgage may attract higher interest rates. If you are unable to remortgage, the Trust Deed may be extended by an additional 12 months.
• If the Trust Deed fails, there is a risk of bankruptcy.
• If you enter into a Trust Deed, evidence of this will be available on the Public Register of Insolvencies
• Only unsecured debts included within the Trust Deed may be discharged at the end of the period and any unsecured debts remain outstanding.
• Your credit rating will be affected for six years from the date that the Trust Deed is approved. You should not apply or take out any credit during the term and should consult your IP for advice if you needed funds, for example, a household item needed replacing.
• Your lenders or owners may not approve the Trust Deed.
• An IVA may impact your employment, for example, if you are the director of a company.
• Stopping contractual payments to your creditors to access this debt solution, could cause your creditors to apply interest and charges to the debt and is likely to trigger contact from them via the contact mediums you have agreed with them. We strongly advise you not to ignore contact as you could miss vital information. We can assist you with it as part of our service.

WHAT CAN BE INCLUDED IN A TRUST DEED?

Debts which can be included within a Trust Deed/Protected Trust Deed include:

• Credit Cards
• Unsecured Loans
• Overdrafts
• Store-cards
• Catalogues
• Payday Loans
• HP Agreements / Finance (in some circumstances)
• Disconnected Utilities
• Council Tax Arrears (in some circumstances)
• Benefit Overpayments (in some circumstances)
• Mortgage Shortfall
• Debt with legal action pending (in some circumstances)
• Old business debt (in some circumstances)

It remains your responsibility to make payments to priority commitments outside of your Trust Deed/Protected Trust Deed, for example; your mortgage/rent, secured loans, vehicle Hire Purchase, current and future council tax, HMRC debt and taxes, child support and fines. Failure to pay these could lead to repossession, loss of access or use of essential goods or services or even imprisonment.

If you are in arrears or are concerned about your ability to pay commitments like these, GW may be able to offer advice and make suggestions to ensure you get back on your feet with priority expenses, if we can’t help you, we will point you in the right direction.

WHAT CAN BE INCLUDED IN A DMP?

1. What is a ‘Protected Trust Deed’ and why is this different to a ‘Trust Deed’? A Trust Deed becomes a ‘Protected Trust Deed’ when a sufficient number of creditors agree to its terms; this means that provided you comply with the terms of your Protected Trust Deed, your creditors are prevented from taking any further legal action against you.
2. Do I pay any fees or charges for a Trust Deed? Whilst GW does not charge a fee for packaging and preparing your case for the Insolvency Practitioner / Trustee; there are fees charged by the Insolvency Practitioner / Trustee for their services. These are built in to, and deducted from, the payments made in to the Trust Deed. These fees will be outlined by the Trustee once they have assessed your case. See the below case study for an example.
3. What happens if my creditors don’t accept the Trust Deed? Despite best efforts and advice, sometimes creditors do not agree to the Trust Deed. Where this happens, the Trustee will assess your suitability for solutions available to Scottish residents, or look to us to arrange a Debt Management plan, with a view to try for a Trust Deed again in a few months – if this remains best advice for you. More often than not, an alternative solution is available for you.
4. What happens if my circumstances change during the Trust Deed? Advise your Insolvency Practitioner / Trustee straight away. There will be certain flexibilities within the agreement for common or anticipated changes; these will be specific to your individual circumstances.
5. How much of my debt will be discharged / written off? Each case is different, dependant on how much you owe, what you can afford to repay, what assets you might have, and how your circumstances change throughout the Trust Deed – for example, if you have a cash windfall you may be expected to pay some or all of this in to the Trust Deed.