Trust Deed Scotland

If you live in Scotland and you have a significant amount of unsecured debt that you can't afford to repay in a reasonable amount of time, a Trust Deed could be the ideal approach.

Find out if you qualify for Trust Deed

Answer a few simple questions and we'll let you know if a Trust Deed could be an option for you.

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Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.
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Why would I want a Trust Deed?

Once you've entered a Trust Deed, you would begin to make single, affordable repayments every month for an agreed period of time (usually three years), avoid further action from your lenders and, on successful completion, have any remaining unsecured debt written off.

What is a Scottish Trust Deed?

A Trust Deed is a legally binding insolvency agreement available exclusively to Scottish residents with significant unsecured debts, such as credit cards, personal loans and overdrafts.

It's designed to help people who can no longer afford their monthly repayments towards those debts, but can still commit to reduced payments for, in most cases, 36 months.

However, if you're in this situation, a Trust Deed isn't always the most suitable approach to dealing with your debts. Before you decide to apply for a Trust Deed, speak to a professional debt adviser to discuss what option could be best for you.

Are Trust Deeds only available in Scotland?

Trust Deeds are only available to people in Scotland with serious debt problems. If you don't live in Scotland and you're struggling with your debts, you might find that an IVA (Individual Voluntary Arrangement) could help you in the same kind of way.

How does a Trust Deed work?

If you have a significant amount of unsecured debt and you can't afford your monthly repayments, a Trust Deed could let you get back in control of your debts and give you an affordable way out of debt problems.

  • Speak to a professional debt adviser to find out if a Trust Deed could be the best solution for you. You can call us today on 0800 195 2911: we'll discuss your finances with you, and work out if a Trust Deed could be your best option.
  • If a Trust Deed is considered the best approach, your Insolvency Practitioner (IP) will draw up a Trust Deed proposal with you. This is a document that shows your lenders how much you can afford to repay them every month, after all your essential costs have been covered.
  • The next step is to find out if your unsecured lenders will accept your Trust Deed. Your IP will send the details of your Trust Deed proposal to your lenders, and it'll be advertised in the Edinburgh Gazette. After 5 weeks, as long as there are no objections from more than 50% of your lenders - or from those holding more than a third of the total debt value - your Trust Deed will become 'protected'.

What does 'Protected Trust Deed' mean?

Once a Trust Deed becomes a Protected Trust Deed, it will become legally binding, which means both you and your lenders will be bound by the terms of the agreement. As long as you keep up with your payments, your Trust Deed can't fail, which means you could be debt-free after just 36 months.

What are the pros of a Protected Trust Deed?

A Protected Trust Deed comes with some very useful advantages, which could help take the pressure off your situation and help you repay your debt at a realistic pace.

Entering a Protected Trust Deed means:

  • You'll have just one affordable repayment to make every month
  • You'll be protected from any further action from your lenders
  • You'll know the date you'll be debt-free - usually 3 years from the day your Trust Deed starts
  • You'll avoid the financial and personal impact of sequestration/bankruptcy.

What are the cons of a Protected Trust Deed?

Like all debt solutions, Trust Deeds come with some downsides too:

  • If you're a homeowner, it's likely you'll have to release some of the equity in your home
  • Details of your Trust Deed will be made publicly available
  • As a form of insolvency, a Trust Deed will remain on your credit file for six years - which could make it harder to borrow money or open a bank account in this time
  • Any secured debt you have cannot be included in your Trust Deed.

Even so, the consequences of not entering a Trust Deed could be even more serious: depending on your situation, you could end up losing your home or being declared bankrupt. One of our advisers could help you find out if a Trust Deed is the best way of dealing with your debt.

How could I set up a Trust Deed?

A Trust Deed is a form of insolvency, which means it can only be set up by a qualified professional, known as an Insolvency Practitioner (or 'IP' for short). Your IP will be responsible for presenting your Trust Deed to your unsecured lenders - and making sure it takes their interests into account as well as yours.

Lenders are often willing to accept a Trust Deed, as they should get more of their money back than they would through bankruptcy/sequestration.

Once your Trust Deed is agreed, your IP will provide an expert point of contact between your lenders and yourself. They'll oversee the Trust Deed all the way through to its successful completion, and will answer any questions or queries you have along the way.

Get expert Trust Deed adviceIf you would like more information, talk to our team today.

Speak to an expert debt adviser on:0800 195 2911

Apply for help online

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Subject to eligibility and acceptance. Fees Payable. Debt write off applies only to unsecured debts on completion of a Trust Deed, alternative solutions may be offered. If your Trust Deed fails, it could lead to Bankruptcy. Your ability to obtain credit will be affected for 6 years. Homeowners may be required to release the equity in their property. Calls may be recorded. Calls from UK landlines are usually free, but you should check with your network provider for full details of your service.

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