Trust Deed
Trust Deed
If you are a Scottish resident and feel that you are not coping with your debts, you could apply for a trust deed. A trust deed is a legally binding agreement between the customer and an insolvency practitioner, who will propose the arrangement to creditors and will oversee repayments. Trust deeds are regulated by The Bankruptcy (Scotland) Act 1985 and, providing the conditions are adhered to by the customer, should spell the end of pressure from credit companies looking to claw back debts.
A trust deed:
- Is more private than sequestration (bankruptcy) and is usually cheaper to arrange
- Usually applies to those with unsecured debts of £10,000 or more
- May be registered as 'protected', preventing creditors from petitioning for the customer's sequestration
- Should relieve pressure on the customer as the insolvency practitioner is responsible for communication with creditors
- Usually only lasts 36 months, at which point the debt is normally cleared
There are disadvantages associated with trust deeds, however. You may have to sell assets and release equity in your home, and your credit rating will be affected by the trust deed. Fill in the form below to find out more and to get help applying for trust deeds.