Trust Deeds - Scotland Only
Trust Deeds are voluntary agreements between you and your creditors (the people
you owe money to). You agreed to repay part of what you owe them. A trust deed will
normally include a contribution out of your income for a specified period; this
is usually 3 years but can vary. Your Trust Deed must be proposed and supervised
by a qualified insolvency practitioner. An ordinary trust deed is not binding on
creditors unless they agree to its terms.
Each case is individually assessed, much in the same way as with an IVA in England
or Wales. As such, you may qualify with £7,000 or more debt from 2 or more creditors.
Although, you may find that an alternative debt solution better fits your circumstances,
if you are unsure, please call today for confidential, helpful advice on 01902 585 017
What are Protected Trust Deeds?
Protected Trust Deeds are legally binding on your creditors subject to you complying
with the terms under which it was agreed. Under a Protected Trust Deed, your creditors
cannot take any action against you, including filling for bankruptcy.
How does a Trust Deed work?
Step 1 – your first call to us on 01902 585 017
When you contact us, we will initially assess your circumstances using our Best
Advice Calculator and discuss the various options available to you. If your requirements
are for a Trust Deed we will then forward your information to one or partners who
will then discuss this with you in more details. If this is not the solution for
you, we will consider you for one of the other options we have available.
Step 2 – your Trust Deed proposal
From your first call, we will be able to assess if you meet basic criteria for a
Trust Deed. If you do, you will be passed over to one of our partners who will conduct
a more thorough assessment based on the information you have already given to us.
If following the more in-depth assessment, our partner believes that you are a candidate
for a Trust Deed they will send out the relevant paperwork and begin processing
your application and will keep in close contact with you throughout the process.
Step 3 – your Trust Deed has been approved
For your Trust Deed to become protected, you will need a sufficient proportion of
creditors to agree to it. At least 50% of your creditors must agree and must be
owed at least one third of your total debt. Creditors who do not reply to your trust
deed within 5 weeks are deemed to have agreed.
What are the benefits of a Trust Deed?
A Trust Deed will:
- Consolidate all your unsecured debt into one monthly payment
- Have a fixed term, usually 3 years
- Write off all your remaining unsecured debt at the end of the term
- Stop creditors from calling and sending letters to you
- Prevent you from being made bankrupt / sequestration
- Allow you to continue to run any Ltd company that you may be running
- Reduce your monthly outgoings in line with your income and expenditure
Are there any drawbacks to a Trust Deed?
All debt solutions have drawbacks, in the case of a Trust Deed, these may be:
- Your trust deed will be advertised in the "Edinburgh Gazette"
- You must convey all your assets to your trustee who will release any money tied up in those assets
- You will normally be expected to raise money from the equity in any property that you own
- A trust deed won’t prevent repossession if you fall behind on your mortgage
Important Information About Our Service & Fees
Whilst we strive in all cases to negotiate the best deal with your creditors, we
cannot guarantee a reduction in interest or charges. Whilst we are able to provide
initial advice over the phone without charge, if a debt solution is taken out, please
be aware that fees will be charged. We aim to keep these fees as low as possible
and believe that we are very competitively priced, for detailed information on our
fees, including examples for each product, please click this link
Further Additional Information
Will your credit be affected?
Potentially Yes - Click here
The Insolvency Service has produced a guide: In Debt? Dealing With Your Creditors.