Trust Deeds

Trust Deeds are a debt solution for people living in Scotland who have £5,000 or more in unsecured debts they cannot repay.

Trust Deeds are legally binding arrangements between you and your creditors. They typically take 48 months (four years) to complete and if successful, the rest of your debt will be written off.

As Trust Deeds are legally binding, creditors can’t take further action against you, which also includes being contacted by them.

If you live in England, Wales or Northern Ireland, Trust Deeds are not available to you. Visit our pages on Individual Voluntary Arrangements (IVAs), which are the equivalent debt solution to Trust Deeds.


Disadvantages of a Trust Deed

  • Trust Deeds affect your credit rating for six years, starting from the date the arrangement is agreed.
  • You will not be able to take out further credit during your Trust Deed.
  • Homeowners may be required to release equity for the benefit of your creditors
  • If you fail to keep up your payments you may be at risk of Sequestration proceedings against you
  • Your details will be held publicly on the Individual Insolvency Register

Advantages of a Trust Deed

  • You will be debt free, typically, in 4 years (48 months)
  • Up to 90% of your debt can be written off
  • You can keep your home and car
  • All interest and charges will be frozen
  • You will no longer be contacted by your creditors

Trust Deed fees

The fees are case dependent and also depend on how much you can pay your creditors each month. Your Insolvency Practitioner will charge a fee to administer and manage your case. This fee will be deducted from your monthly contribution before it is disbursed, meaning no additional payments will be required.

Qualifying for a Trust Deed

  • You must live in Scotland
  • You have £5,000 or more unsecured debts
  • You are able to contribute a reasonable amount towards your debts every month

How do I apply for a Trust Deed?

To enter into a Trust Deed you need to instruct an Insolvency Practitioner (the Trustee) who will administer and manage your case.


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Trust Deeds

Updated on 2016-12-05T15:48:56+00:00, by Kristian Stock.