Trust Deeds faqs Debt Advice

What is a Trust Deed?

A Trust Deed is also known as the Scottish IVA. It is a formal Debt Solution specific to Scotland which offers a better alternative to Bankruptcy. A Trust Deed enables you to come to a set arrangement with your creditors where you agree on a lower, monthly repayment towards your debts that is affordable to you. A Trust Deed normally lasts for a period of 36 months and at the end of it, the remainder of your debts is written off.

What are the benefits of a Trust Deed?

  • You will know exactly when you will be debt free with a Trust Deed.
  • At the end of your Trust Deed any unpaid debt is cleared. The amount depends on your income and debt level.
  • You have only one affordable monthly payment.
  • Your creditors are bound by the terms of the Trust Deed.
  • Your Creditors can take NO legal action and will not be able to harass you when your Trust Deed becomes protected.
  • There is no court process or public notices and your employer will not find out.
  • Less restriction than Sequestration.

If you are thinking about entering into a Trust Deed, contact us at Debt Advice.

How do I set up a Trust Deed?

You can set up a Trust Deed by contacting us at Debt Advice. You will need the help of a Licensed Insolvency Practitioner or IP. We have many reputable IP's that work for us at Debt Advice. The IP advises you, helps you and puts your Trust Deed Proposal to your creditors.

If a Trust Deed is your best option, setting it up is straightforward. Firstly our advisors will go through your situation with you, discussing your debts, circumstances, your incomings and outgoings etc... This will help us determine how much your monthly contribution will be to your creditors. If at this stage, you want to proceed we will meet you in person or on the phone and have a more detailed discussion about the process of a Trust Deed and to run over your proposals that we have drafted. If you are happy with everything we will then negotiate with your creditors and after this period, if there are no major objections, your Trust Deed will become protected - you will be free from debt in 36 months.

What is the effect of a Trust Deed?

When your Trust Deed becomes protected, you and your creditors are bound by it. As long as you continue to make your monthly payments, none of your creditors can harass you, back out, or commence any legal proceedings. Any correspondence and telephone calls should cease.

How much do I have to pay?

This depends on your circumstances and your debt level, but everything will be detailed before you have to make any decisions.

What happens when I have completed my Trust Deed?

When your Trust Deed is complete your payments are taken as Full and Final Settlement with your unsecured creditors and any remaining debt is written off. You will be Debt Free.

I am a Homeowner. What will happen to my home?

Your normal mortgage payments should continue and your mortgage will be allowed for when we are working out your monthly incomings and expenses. However, if you do have a lot of equity in your property , this may be considered in your Trust Deed.

How much does a Trust Deed cost?

Your Trust Deed doesn't cost anything during the set up stage. Only when your Trust Deed becomes protected do we charge anything. Our fee is determined by your creditors and comes out of your set monthly creditor payment, so you will never receive a bill from us.

Other Debt Advice faqs

- Unsecured Debt faqs
- Secured Debt faqs
- Administration orders
- Debt Management Plan faqs
- IVA/CVA faqs
- Bankruptcy faqs
- Sequestration faqs
- Other/General Debt faqs

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