New Trust Deed statistics revealed!

New debt statistics have revealed how many Protected Trust Deeds are being administered per postcode. These new debt stats were collated by Debt Support Trust and formatted into a table in order to show which postcode was the largest for protected trust deeds.

From the new debt statistics it is clear that of the 7,980 protected trust deeds (KY11) Inverkeithing had the largest amount between 2010 and 2011 with 144 while TD4 (Earlston) had the lowest number over the year with just 1 case.

The new information has been released in the form of a table which can be searched in order to find a specific postcode. The information has also be released with information to help everyone understand what the statistics mean.

The five largest postcode areas for protected trust deeds are shown below in the list.

KY11 - 144 Inverkeithing
ML5 - 114 Coatbridge
ML6 - 113 Airdrie
EH54 - 110 Livingston
G81 - 105 Clydebank

The general postcode regions have also been collated which means people can see a general overview of which regional postcode was biggest for a Protected Trust Deed.

Note: It is worth remembering that these stats while useful are not linked to per 100,000 population. This means that we while the G postcode may be the largest for a Protected Trust Deed it is also the largest per population and therefore faced a higher chance of having the largest Protected Trust Deed. This information can help to see what effects can create debt and help to stop it in future. For example, In an area where a large factory has closed down and people have faced redundancies it is useful to know wither or not this area was large for protected trust deeds as it could have had an impact.

This information was collated after the released statistics from the accountant in bankruptcy who administers protected trust deeds. The information was then broken into individual postcodes and listed from largest to smallest.

Please note there is a discrepancy of 7 between the 7970 Protected Trust Deeds and the 7973 postcodes.
The statistics have also been split into a pie chart which shows the regional postcodes for each Protected Trust Deed. 

The introduction of certificate of sequestration last year also contributed to a large decrease in the number of people who entered a Protected Trust Deed. This new debt solution allows people to apply for sequestration without the need to prove they are apparent insolvent and therefore have their creditors seek sequestration.

Protected Trust Overview

There are a number of ways to become debt free for people in Scotland, including general money advice, debt management plan, Protected Trust Deed, refinancing or Sequestration.. One way in which people can solve their debt problems is with a Trust Deed.

What is a Trust Deed?

A Trust Deed is a formal, legally binding solution only available to people living in Scotland. The English, Welsh and Northern Irish alternative would be an IVA. In a Trust Deed you would repay arrangement a percentage of your debt at an affordable rate over a fixed period of time. A Trust Deed will usually last for 36 months however it can last for up to 60 months. If you complete your Trust Deed you will have a percentage of your debt cleared. Anybody entering a Trust Deed will be asked to make a monthly payment of at least £150.  At the end of the solution the money you have paid will be distributed to your creditors on a pro rate basis.  The disposable income paid each month is assessed based on your income and expenditure. 

The Trust Deed process?

If you think a Trust Deed  is right for you then you should consider speaking to a debt advice charity who can point you in the right direction. You would sign the Trust Deed which would then be offered to your creditors. The Trust Deed is also advertised in a publication called the Edinburgh Gazette. If your creditors accept the proposal your Trust Deed will become legally binding and ‘Protected’. The Protection binds both  you and your creditors to the Trust Deed terms.

What’s the criteria for a Trust Deed?

You must;

- Be able to repay at least 10% of the money you borrowed over a 3 year period

- Owe at least £10,000 unsecured debt

- Be able to pay £150 towards your debt each month

Benefits of a Trust Deed?

There are advantages and disadvantages of a Trust Deed. You will asked to make one affordable payment towards your debt each month. The arrangement made in the Trust Deed with your creditors will last for a certain amount of time and it will be fixed so you can see the ‘light at the end of the tunnel’. As long as you fulfil your end of the agreement all interest and charges will become frozen and written off  at the end of your solution. Another benefit is your creditors can  no longer take any action against you once the Trust Deed is Protected. You will only repay a percentage of the money you owe – a minimum of 10%  however the more you repay the more likely your creditors are to accept your proposal.

What are the disadvantages?

There are a number of disadvantages to a Trust Deed. Your credit file will have a default on it which will last for 6 years. This would mean obtaining credit in the future will be difficult. You will generally be able to retain your property, however you will have to release any equity within your assets. You will not be able to remain as a director of any organisation and would have to relinquish this position in a Trust Deed. You may need to sell your cars and downsize, however this is evaluated on a case by case basis. Any assets you own worth over £1,000 may need to be sold or the insolvency practitioner may look to release the equity.

How do I get a Trust Deed?

In 2010, over 9,000 people entered a Protected Trust Deed. The Trust Deed is not suitable for everybody however for people with serious debt problems it may the right option. To get a Trust Deed you first want to make sure there are no other solutions to debt which would be less harmful to your credit rating. The best people to speak to about a Trust Deed is a debt charity who will give you independent advice.