Trust Deed

Only available in Scotland, a Trust Deed is a legally binding debt relief solution available to people living in Scotland with £5000 or more with unsecured debt.

A protected Trust Deed is a legally binding agreement for people struggling with debts of £5,000 or more and is between an individual and a licensed Insolvency Practitioner (IP) who will manage the agreement with the creditors.

Once you enter into a Trust Deed, creditors will no longer contact you for payment and interests relating to your debts are frozen and you will only pay back what you owe depending on how much you can afford. A Trust Deed is an alternative to a Debt Arrangement Scheme and Sequestration in Scotland but will affect your credit rating for 6 years.

Advantages of a Trust Deed

  • No more contact or enforcement by creditors: Once you enter into a Trust Deed your creditors can no longer contact you and must deal directly with your IP regarding all matters of the arrangement.
  • Trust Deed’s typically come to an end after four years with all remaining debts at that time written off.
  • You are still able to obtain credit, such as a mortgage or credit card, in a Trust Deed but it could be more difficult than in normal circumstances.
  • A Protected Trust Deed doesn’t prevent you from certain employment or public office like sequestration.
  • You make one affordable monthly payment, calculated after an allowance has been made for all the general living expenses and household bills.
  • There are no fees associated with setting up a Trust Deed like other debt relief solutions.

Disadvantages of a Trust Deed

  • Creditors may not agree on receiving their payments through this arrangement.
  • Your credit rating will be affected.
  • Student loans aren’t taken into account in a Trust Deed.
  • Your current employment or future employment may be affected.

Get in touch with us about a Trust Deed today