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.
The terms and conditions of the agreement are tailored to suit your individual circumstances and payments are based on what you can afford to pay each month. If creditors agree to the terms of the Trust Deed it will become protected and legally binding.
Read on to find out more about Debt Management or fill in the form and one of our advisors will contact you to advise on your debts.
Debt Consolidation could be suitable for you if:
You will need the help of a Trust Deed Provider or a Licensed Insolvency Practitioner or IP. 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 a debt adviser will go through your situation with you, discussing your debts, circumstances, your incomings and outgoings etc... This will help them determine how much your monthly contribution will be to your creditors. If at this stage, you want to proceed, then your proposal is drafted. Your creditors will vote on your trust deed 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.
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.
This depends on your circumstances and your debt level, but everything will be detailed before you have to make any decisions or commit to anything.
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.
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.
Your Trust Deed doesn't cost anything during the set up stage. Only when your Trust Deed becomes protected do you pay anything. The fee is determined by your creditors and comes out of your set monthly creditor payment, so you should never receive a bill.
Everything was explained to me fully and any questions asked were always answered. They have made my debt problems so much easier to handle. Thank you so much.Testimonial Melanie
Cannot recommend enough. They have made a very stressful situation so much easier with their professionalism, ease of contact, and customer support. Thank You.Testimonial David
Absolutely brilliant. Could not fault them. Everything was clear, concise and they talked me through every step of the process, making a difficult and worrying situation much easier.Testimonial Lora