Sheriff Officers
What are the disadvantages of a Trust Deed?
There are surprisingly few disadvantages from Trust Deeds.
What most people want to know is, what's the catch? The answer is that there is no catch. Remember, the Trust Deed is government legislation that was introduced to help people avoid sequestration and get out of debt with dignity. So it’s only going to be of benefit. The few disadvantages of Trust Deeds that do exist include
Homeowners may have to remortgage at an affordable rate
You will not be asked to remortgage higher than 80-85% of the value of your property. You will only be asked to remortgage if you can afford to do so. You may be able to offer an alternative such as extending the IVA, or funds from a third party.
Your credit rating is damaged for six years
All debt solutions adversely affect your credit file. If you have got to a position where you are considering a Trust Deed, you will probably have to resign yourself to a damaged credit rating. On the positive side, it will repair six years from the start of your Trust Deed.
You may need to open a new bank account
Most people see this as a small price to pay for writing off so much debt, but for some people this is a concern. Contact us if you want to find out whether this would apply to you.
Your lifestyle is unlikely to be very luxurious
You probably haven't been enjoying a luxury lifestyle recently anyway. Life in a Trust Deed should be comfortable, with enough money to pay all your bills and live reasonably well, but you will not be living in the lap of luxury.
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Solution: Trust Deed
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