Welcome to the trust deed forum Ellbee812.

It sounds very much like a trust deed isn't going to be the right type of debt solution for you. Your share of the equity in both properties (£165,000) vastly outweighs your unsecured debts (£12,000).

A trustee would be required to review your assets to see whether/how they could be used to deal with your debts. So, for example, one possibility is that you might be required to sell the flat to raise funds to repay your creditors.

By contrast, the Debt Arrangement Scheme (DAS) takes no account of your assets and could allow you to quite simply repay the debts at a rate you can afford while being legally protected from your creditors.

How much do you think you could genuinely afford to pay towards your debts each month?

Thanks so much for the reply, I think I could easily pay £160-175 per month

Hi again Ellbee812.

With that level of monthly payment you could clear the debts entirely, using DAS, in less than six years.

It might be worth getting some direct advice to confirm that a monthly payment of this size is both realistic and likely to be accepted by your creditors.

Hi Ellbee812 and welcome to the forum. I would definitely agree with TDA that a Trust Deed would not be a viable solution for you. However I would be confident that a DAS set up at the rate you can afford would be possible. It would take a little longer than a Trust Deed would have, but keeps your properties safe.

Thanks for both of the responses. I do hope to be able to take a full time job in the future and increase my income, so perhaps as a short term measure the DAS would be an option, once the das is completed, how long would it take to repair my credit again do you know? Is it the 6 clears again?

Also is this something both of your companies would offer ?

Hi Ellbee812,

Anything that goes onto your credit report stays there for six years, but clearing your debts really opens the door to improve your future credit status.

Of course if you increase your earnings then you could become able to clear the debts much sooner than the six years I mentioned previously, which would mean the process of improving your credit rating could begin sooner.

Trust-Deed.co.uk (where I work) isn't a direct provider of formal Scottish debt solutions. We provide regulated debt advice to enquirers and can (with their permission) connect them with a solution provider that we feel comfortable recommending.

Kevin and Paul work at two separate solution providers that we feel very comfortable about recommending to our website's visitors. Both firms provide DAS, trust deed, and bankruptcy services.

Thanks so much for all your help

That's our pleasure Ellbee812.

It certainly sounds like you're going to be able to put something in place that takes care of this problem.