Scotland FAQs
Newtomorrow are experts in providing specialist debt solutions that will help you achieve complete debt relief as soon as possible. Our debt solutions are designed help you build an entirely debt-free tomorrow.
If you require debt help but are unsure of which debt solution is best for you, then finding the answer to some of the most pressing questions can help to highlight the debt solutions that provide the best way out of debt for you.
Remortgage
If I require debt help, and with expert debt consolidation assistance I am advised to remortgage, then do I have to be a home owner to apply for a remortgage?
Yes. But even if you own a property jointly with someone else (such as a spouse), a remortgage will still be a possible debt help solution if the other person agrees.
As part of our dedicated debt assistance service, we answer your remortgage questions. Contact us today on 0800 678 1234 if you would like individually tailored assistance with your debt problems.
How does the process of a remortgage work?
Individual lenders have different procedures for remortgages. Therefore, our debt assistance guide to the remortgage process should only be regarded as a general guide and is not a definitive list of what will be required.
In general, the process is likely to include the following steps. The new lender (or their solicitors) will:
- Contact your existing mortgage lender to confirm the balance of your existing mortgage.
- Check that the value in your property will pay off your existing mortgage.
- Send out legal documents for your signature or arrange an appointment.
- Repay your existing mortgage on your behalf.
- Send you a cheque for the difference between the new mortgage advance and the amount required to pay off your existing mortgage.
There will also be mortgage title deeds to transfer. Your new mortgage lender will normally store your title deeds, including the new mortgage deed, once registration is complete.
If you want personalised debt assistance on remortgaging, our debt advisers can provide all the information you need to make an informed decision. Call our debt helpline today.
If I decide that remortgaging is the best solution for me to clear debt, how long does it take to get a remortgage?
Unless there are special legal circumstances, a remortgage can normally be completed within 30 calendar days of a mortgage offer being made. Most lenders can make mortgage offers quickly after an application is submitted, making it an ideal solution to clear debt quickly.
Our expert debt consolidators are here to provide you with the best help to clear debt as quickly as possible, so you can get on with enjoying a debt-free tomorrow.
Debt Consolidation Assistance - Remortgage FAQ
As part of our debt consolidation assistance service we provide the answers to your remortgage questions.
Will there be money left over after I have remortgaged and repaid my debts?
This entirely depends on the value of your property (which may have risen since you bought it) and the amount you owe to your mortgage lender and anyone else who has a security over your property. It is possible that further sums will be left over. You should obtain independent financial advice in this regard.
Newtomorrow can provide debt consolidation assistance throughout the process of remortgaging - from deciding whether a remortgage is the best debt solution for you, through to continued ongoing support in remortgaging your home.
We can provide specific debt advice for Scotland, as well as the rest of the UK. Call 0800 678 1234 for complete debt consolidation assistance.
Debt Solution - Remortgage FAQ
If remortgaging turns out to be the most favourable debt solution for me, who will know about my remortgage?
There are many benefits to remortgaging as a debt solution - one of the main advantages is that no one (other than the mortgage lenders) needs to know about your remortgage.
However, the deed in favour of your new lender will be registered in the Land Register, which is public and open to examination by anyone who wishes.
Call us on 0800 678 1234 if you would like more information about a remortgaging debt solution. Alternatively, take our debt test to determine your best course of action.
Sequestration
The legal system in Scotland differs from the rest of the UK and, as such, offering specific debt advice for Scotland is paramount in providing the right debt assistance for you.
One of the foremost considerations with optional sequestration is to know how long you will be sequestrated for.
The minimum period for sequestration is one year and, as long as you have complied with your Trustee's requests during this period, you will automatically be discharged on the first anniversary of the commencement of sequestration.
As part of our dedicated service offering debt advice for Scotland, we will look at your individual circumstances and provide personally tailored debt advice for you. Call Newtomorrow today to talk to a debt adviser: 0800 678 1234.
The principal effect of sequestration in Scotland is that your estate must be handed over to a Trustee. The Trustee is appointed to realise your estate for the benefit of your creditors.
If applicable, you will be expected to contribute any surplus income generated from your employment over the period of sequestration, which will be a minimum of one year.
Under sequestration in Scotland, when the Trustee has realised your estate, and provided that you have complied with any request to contribute surplus income, your Trustee will settle the fees and expenses of the sequestration process.
Your Trustee is also responsible for paying any surplus funds as a dividend to your creditors and applying for your discharge from sequestration in Scotland.
If you have serious debt problems in Scotland, you may be faced with apparent insolvency.
What is apparent insolvency?
Apparent insolvency means that you are unable to pay your debts, and that at least one of your creditors has taken legal action against you.
Generally, this means at least one of the following will apply:
- Having obtained a decree in respect of a debt due to them, one of your creditors has served a charge for payment of the debt and you have failed to make payment within the 14 days allowed by the charge.
- One of your creditors has served a Statutory Demand for Payment and you have not paid the sum due within the 21-day time limit allowed by the demand.
In addition, apparent insolvency also arises where you have given written notice to your creditors that you have ceased to pay your debts in the ordinary course of business or by the granting of a Trust Deed.
If you are facing debt problems in Scotland and fear the legal consequences, help is at hand. Our debt advisers are here to assist you on the path to a debt-free tomorrow.
Call our debt helpline today and enjoy a new tomorrow, free from your debt problems in Scotland.
Sequestration in Scotland is the equivalent of Bankruptcy in England and Wales. Although the two processes are similar, there are some differences. Sequestration should only be considered as a last resort debt solution.
If you are sequestrated, your estate must be handed over to a Trustee. The Trustee is legally obligated to realise your estate for the benefit of your creditors. Sequestration lasts for one year; however, your ability to obtain credit may be affected for a longer period.
According to sequestration law, if you owe at least £1,500, and your apparent insolvency can be demonstrated, you can make an appointment to the Accountant in Bankruptcy for the sequestration of your Estate.
If you owe a creditor at least £3,000 and your apparent insolvency can be demonstrated to the Court, a qualifying creditor can petition the court for your sequestration. This would mean you having to realise all assets you have, including equity in your home, cars or any other assets.
Will I get to keep my home if I am sequestrated?
Generally speaking, if you have equity in a house (i.e. it has a value in excess of any mortgages on the property), even if it is jointly owned, it may have to be sold.
Offering the best debt advice for Scotland, so as to secure the right debt solution for you, is our paramount concern. Newtomorrow debt advisers are fully informed and can provide expert debt help for Scotland. Since 2006 we have assisted thousands of people with personalised debt help in Scotland.
Trust Deed
If I decide that Scottish Trust Deeds are the best debt solution for me, how do I enter into a Trust Deed?
Scottish Trust Deeds offer an alternative to sequestration for people with serious debt problems.
You can only be considered for a Scottish Trust Deed if you owe at least £10,000 of unsecured debt to a minimum of 3 different creditors. You must be in paid employment and be able to afford a consistent monthly contribution after paying priority debts, such as a mortgage.
Call the Newtomorrow debt helpline on 0800 678 1234 today and we can advise if Scottish Trust Deeds are the right solution for you. If a Trust Deed is right for you, we can help you assess your income and expenditure and agree a proposal with your creditors.
If you sign a Trust Deed then you will be transferring all of your assets to a Trustee. Assets can include your share of any equity in your home, cars, investments or any other significant assets.
Once you sign a Trust Deed, your Trustee will place an advert in the Edinburgh Gazette. This is a publication subscribed to by solicitors, accountants, banks and various other institutions. Your creditors will have 5 weeks to object to the terms proposed by your Trustee.
Provided that no more than one third in value or a majority number of your creditors object to the terms proposed, the Trust Deed will become "Protected".
Legislation for a Protected Trust Deed means that your creditors can no longer pursue you for sums owed to them, petition for your sequestration in Scotland or take any other legal debt recovery action.
For many people facing debt problems in Scotland, Scottish Trust Deeds are the ideal debt solution option.
How long does a Trust Deed last?
Normally a Protected Trust Deed in Scotland lasts for 36 months (three years).
If you think that finding out about Scottish Trust Deeds is the answer for you, or if you would like personalised information on a Protected Trust Deed in Scotland, contact our friendly debt advisers today on 0800 678 1234.
How long does it take to get a Scottish Trust Deed?
Scottish Trust Deeds can be an effective solution to debt and can be set up in a matter of weeks.
The initial signing of a Trust Deed can be completed very quickly (a matter of days). After an initial telephone consultation, we will visit you at home to explain exactly what you have to do. You are under no obligation to sign and if you change your mind we can offer another solution.
After you have signed the Trust Deed, it takes approximately five to six weeks for the creditors to accept the proposal.
Details of Scottish Trust Deeds are published tin The Edinburgh Gazette. The Edinburgh Gazette is read by solicitors, accountants, banks and other institutions.
Your creditors have 5 weeks to object to the proposal set out by your Trustee. Provided that no more than one third in value or a majority in number of your creditors object to the terms proposed, then the Trust Deed will become "Protected". This means that your creditors can no longer take action for recovery of any debt incurred prior to the Trust Deed being signed.
If you would like to explore the option of Scottish Trust Deeds, call a Newtomorrow debt expert today for advice: 0800 678 1234.
Once I have agreed to a Protected Trust Deed, is it always accepted by the creditors?
Once you have signed a Trust Deed, creditors are given approximately five weeks to agree or dispute the proposal. Your proposal will be sent to all of your creditors so they are able to consider its terms and object if they wish.
If your creditors agree to the proposal after the five weeks (no response is accepted as agreement), the Trust Deed becomes "Protected". At this point you have complete protection from your creditors.
Scottish Trust Deeds will only fail if a majority in number of creditors (or greater than one third in value of the debt) reject the proposal.
Newtomorrow's dedicated team of debt experts have years of experience in preparing Protected Trust Deeds that are in your best interest, while maintaining the best possible chance of acceptance from creditors.
For more information on how a Protected Trust Deed can help you, call us today on 0800 678 1234.
A Trust Deed is an effective remedy to your debt problem that allows you to agree a fixed monthly payment with your creditors. As soon as you have entered into a Trust Deed all interest and charges are frozen. Once you have made your final payment, all outstanding debt is legally written off by the creditors.
The benefits of a Trust Deed are:
- All pressure from creditors is removed.
- You will not pay any fees directly.
- You will only repay what you can reasonably afford.
- Interest and penalty charges will be frozen.
- We will deal with all correspondence and queries from your creditors.
- You will pay only one affordable monthly repayment.
- After completing a Trust Deed, which normally takes 3 years, you are completely debt-free and ready to start afresh financially.
A Protected Trust Deed is an alternative to sequestration. Basically it is a proposal between you and your creditors, administrated by a licensed Insolvency Practitioner.
The terms of your proposal to creditors may be flexible, but creditors will reasonably expect their prospects of recovering money under a Trust Deed to be at least as good as with sequestration proceedings.
Will I get to keep my home if I enter into a Scottish Trust Deed agreement?
Normally, yes. However, with a Scottish Trust Deed you will have to release any equity available in your property to pay your creditors. As part of our debt solutions service, we will be able to advise you fully on this.
Whatever your debt help requirements are, our specialist debt advisers are specially trained to guide you through the debt solutions available. We can help you organise your finances and put in place a plan for a debt-free future. Contact us today for personalised debt solutions on 0800 678 1234.
Getting Started
