Trust Deeds

Trust Deeds may seem daunting and complicated, however National Debt Advice can arrange the whole procedure and allow you to rest assured that you have minimal stress throughout.

A trust deed is a formal debt solution and can be voluntary or protected. They are only available to those living in Scotland. The standard contribution period in a Protected Trust Deed is 48 months, with a minimum level for debt to qualify for a Protected Trust Deed being £5000.

Trust deeds are administered by an insolvency practitioner; with whom we will put you in touch with once you have completed the above enquiry form. They are an effective way to prevent future debt problems and avoid more extreme measures such as bankruptcy.

There are 2 types of trust deeds – Voluntary and Protected – Protected Trust Deeds are legally binding and offer peace of mind, with measures in place to ensure that you no longer have any contact with your creditors. Only unsecured debts (e.g. credit cards, store cards, personal loans) can be covered by a trust deed.

  • Both you and your creditors work to guarantee a settlement of your debt, allowing you future freedom and greater control over your finances.
  • Monthly payments are set according to your ability to pay and will take into account your financial, domestic, employment and family circumstances.
  • Once the trust deed is agreed, interest is no longer payable on the debt.
  • All contact with creditors is cut off, removing pressure and stress for you.
  • Most trust deeds will not affect your employment, or your business if you are self-employed.

  • Creditors are under no obligation to accept a Trust Deed proposal and may still pursue bankruptcy/sequestration.
  • Home owners will be expected to release equity from their home as part of the Trust Deed agreement.
  • Once the Trust Deed starts, details of the agreement will be placed on the AIB register.
  • Your credit score will be severely affected for up to 6 years from the date the Trust Deed starts.
  • If a trust deed fails… your creditor can petition for the debtor to be made bankrupt/sequestrated. The trustee in a failed trust deed can also petition the court for the sequestration of the debtor.
  • There are costs associated with trust deeds – our chosen partners will take you through these and work out what they will be according to your personal circumstances.
  • Your bank account may be shut down and you could be denied certain accounts
    Creditors must agree to the terms of a trust deed, before it becomes protected.

You can obtain free, impartial advice on the options available to you from Citizens Advice Scotland, Money Advice Scotland or if you would like to speak to one of our chosen partners, simply fill in the contact form and a trained licensed debt adviser will contact you to advise on your options.

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