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Trust Deeds | Scottish | Trust Deed | Debt Advice
What is a Trust Deed (Scotland)?
A Trust Deed (also known as the Scottish equivalent to an IVA) is a formal debt solution between you and your creditors where you pay back only the percentage of your debts that you can afford and the rest is written off. It is seen as a good alternative to Sequestration.
A Trust Deed normally lasts for three years and at the end of this period, any unpaid debts are written off.
A Trust Deed is a formal agreement and when it is protected it
becomes legally binding for all your creditors involved. The terms and
conditions of the agreement are tailored to suit your individual circumstances and what you can afford to pay each month. If your creditors agree to the terms of the Trust Deed it will become protected and legally binding.
How to set up a Trust Deed | Advantages of a Trust Deed | Is a Trust Deed right for me? | Other Debt Solutions
How to set up a Trust Deed
In order to set up a Trust Deed you need to first find out if you meet the basic criteria. You can contact us for advice on this. Once you know you do meet the criteria an Insolvency Practitioner (IP) must oversee your case. You cannot do a Trust Deed without an IP. Their job is to advise and assist you and put your Trust Deed proposal to your creditors. They must remain fair and at all times, have you and your creditors interests at heart. So assuming that a Trust Deed is your best way forward you would:
Contact us at Debt Advice. We will run through your situation with you and prepare a list of your creditors, income, outgoings etc... This will enable us to come up with your new monthly affordable payment. With your approval we will put the proposal through to your creditors. Your creditors will have 5 weeks to notify the trustee of any objections in the proposal. Should the trustee not recieve any significant numbers of objections, then your Trust Deed becomes Protected and you will be debt free in 36 months.
Advantages of a Trust Deed
- You will know exactly when you will be debt free.
- You will have a percentage of your debt written off at the end of your Trust Deed. 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. They can take NO legal action and will not be able to harass you any more.
- 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.
Is a Trust Deed right for me?
A Trust Deed is right for you if:
- You are a resident of Scotland
- Your debts are too high and unmanageable and the problem is getting progressively worse.
- Your creditors are putting too much pressure on you to pay back your debts that you can't afford to pay
- It's going to take an exceptionally long time to pay your debts back
More Debt Solutions
If a Trust Deed sounds like something you might be interested in, you can discuss it with us at Debt Advice further, in confidence and for free.
If you feel you need more information on other Debt Solutions please see the tables below or contact Debt Advice on our lo-call helpline 0844 56789 44.
Debt Solutions (UK and N Ireland) |
Administration Order
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Debt Solutions (Scotland) |
Sequestration
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