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I am retired - can I apply for a Trust Deed?

Yes, you could apply for a Trust Deed with Wilson Andrews if you are retired. As well as your debts, we'd assess your income - which might include a (private) pension or rental income - and your expenditure, to see whether it's an appropriate solution for you.

A Trust Deed is a kind of debt solution which can freeze interest and charges. It's designed to help people repay their unsecured debts when they're really struggling. It can help you to repay as much debt as you can afford over (usually) four years - and then write off the rest on successful completion.

We would need to secure agreement from at least half of your unsecured creditors before you could start a Trust Deed - and the ones that do agree must own at least one third of your total debt. We can advise you on whether we think your lenders would accept you onto a Trust Deed. There could be other options available.

If you do enter a Trust Deed, you may be asked to release equity in your home and your credit score would be affected for six years - but if you're already struggling, it could still be the best approach to take.

A question of affordability

When you apply for a Trust Deed, we assess whether you could realistically commit to making monthly payments for four years - and whether it really is the best solution to your financial problems. We also provide help with DAS (the Debt Arrangement Scheme) and LILA, the Low Income, Low Asset route into bankruptcy in Scotland.

Basically, if a Trust Deed would be suitable, you could apply for one - even if you are retired, or due to retire in the next four years.

If you are due to retire during a Trust Deed

If you are due to retire during a Trust Deed, it doesn't have to be a problem, but you do need to tell your Insolvency Practitioner when you apply, so they can discuss the affordability of a Trust Deed, post-retirement, with you.

You only pay what you can reasonably afford during a Trust Deed. If you know your income will drop on retirement, your payments could be lowered too. This would be discussed at the outset.

If you're approaching retirement, we could still help you. Contact us for more debt help and advice.

Article Updated 12/12/2013