What Is A Trust Deed?
Trust Deeds were introduced by the Scottish Government in the 1980's to help people struggling with their finances to regain control. They use Government legislation to agree an affordable monthly payment between you and your creditors.
A Trust Deed is a legally binding agreement between you and your creditors, where you make reduced payments to your debts as an alternative to bankruptcy.
A trust deed enables those who are unable to repay their debts a way of stopping legal action etc and getting a monthly payment in place that the debtor can
afford to pay. The trust deed wll usually last for four years, at the end of this time any remaining unsecured debts are usually written off.
Trust deeds are only available if you live in Scotland. If you live in England, Wales or Nortgern Ireland, then an IVA (Individual Voluntary Arrangement) is a similar solution.
How do they work?
We help you draw up a realistic monthly repayment plan with you, this ensures you have enough money to pay all your household bills, food, clothing, etc. Our experts will then draw up a proposal and send it to your creditors.
Once the Trust Deed is in place, your lenders must freeze all the interest and charges by law, as it is a legally binding agreement.
It also gives you full protection from your creditors, so they can no longer phone, text or write to you whilst you are in the Protected Trust Deed.
It also prevents wage arrestments, Sheriffs and they can not hey cannot petition for your Sequestration (Bankruptcy).
Write off the debt you can not afford
If you complete the monthly payments in your Trust Deed (usually 48) then any debts included in the Trust Deed that still exist will be legally written off!
If you are a homeowner, you may however be asked to release equity from your property in the final year of the Protected Trust Deed to help repay your lenders, but this will depend on your personal situation. Our experts will discuss with you whether this applies before we start the Trust Deed process.
Free from your unsecured debts in 48 months.
Can I Get A Trust Deed?
You can apply for a trust deed providing you:
- Two or more creditors
- Struggling with payments
- More than £5,000 of unsecured debt
- Demonstrable proof of circumstances
- Have lived in Scotland for at least 6 months
How do I start a Trust Deed?
You will firstly need to take the Trust Deed test to find out if you could qualify for a Trust Deed. An adviser will then work with you to determine your present financial situation.
Can I Get A Trust Deed?
Our panel of specialists can quickly advise whether you qualify for a trust deed. Simply call the team FREE on 0800 368 8231.
Alternatively take the online trust deed test and check if you qualify.