What is a Trust Deed?
A Trust Deed is a voluntary arrangement for Scottish residents that allows you to come to a legally binding arrangement with your creditors to repay part, or all of what you owe. We can assess if a Trust Deed is suitable for you as not everyone is eligible. For instance, you must be residing in Scotland for over 6 months and have regular house income. There are fees involved with Trust Deeds, find out more on "Our Fees" page.
It is important that you consider the features and benefits of a Trust Deed. To understand if it's the right option for you, here is some key information to help.
You could benefit from:
- Lower monthly repayments to your creditors based upon what you can afford.
- A fixed agreement usually lasting 4 years, after which any remaining unsecured debts could be written off depending on your circumstances.
- Protection from legal action by creditors, (once the your creditor to the Trust Deed).
- Frozen interest and charges.
- No more calls from creditors. Your creditor correspondence will be handled for you.
- A Trust Deed may be available as a debt solution if you live in Scotland or the Highlands and Islands. If you live in England, Wales or Northern Ireland please refer to our Debt Management or IVA page.
Things to consider
- If you don't stick to your agreed terms the trustee can apply for your Trust Deed to be brought to an end and your debt will be transferred back to you. You may then be at risk oli bankruptcy.
- If you are a homeowner you will be expected to release any positive equity for the benefit of your creditors.
- A Trust Deed will appear on your credit file for up to 6 years from the date it commences. During this time it may be difficult for you to obtain credit and you may be subjected to higheli rates of interest.
- Creditors do not have to approve a Protected Trust Deed.
- Any unsecured debts that were not included would remain outstanding.
- A Trust Deed will be recorded and entered on to a public register.