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Trust Deed

A Trust Deed is an alternative to Sequestration for Scottish residents and was set up by the Government to help people in Scotland struggling with financial difficulties.

Protected Trust Deeds are legally binding contracts between both you and your creditors. As long as you keep up with the agreed payments, you will become debt free at the end of the arrangement, which is usually no more than 36 months. It will also prevent any further action being taken against you.

A Trust Deed will provide:

  • A single affordable monthly payment.
  • A fixed repayment period (usually no more than 36 months).
  • An agreement that your creditors will freeze interest and stop any charges so your debt balance does not increase.
  • Protection from further action by your creditors.
  • Upon completion of your Trust Deed your creditors legally write off any outstanding debt.
  • No court appearance required.

Call us free on 0800 008 7969 to speak with one of our expert advisors about your debts and the options that may be available to you.

Alternatively, complete our online enquiry form and one of our advisors will call you back.

A Trust Deed is a form of debt solution for residents of Scotland. Essentially the idea of a Trust Deed is similar to that of most debt solutions offered by Debt Support Service. It will allow you to pay one payment a month to all your unsecured debts which will be based on what you can afford. The main difference between this and say a Debt Management Plan is that you will typically make 36 payments to the Trust Deed. Once complete the remainder of your debt that hasn't been paid back will be written off for you. Like an IVA it does not look for "loopholes" in agreements, it is a form of Government legislation that is designed to assist those in difficulties.

A Trust Deed can be a good debt solution for you if you owe more than £10000 on unsecured credit and are currently either finding things difficult or missing payments. It was introduced as an alternative to Bankruptcy or Sequestration. Previously the options open to people were either Sequestration or very long repayment plans, so the government and creditors agreed there needed to be a "middle ground" and as such the Trust Deed was born. When people go down the Sequestration or Bankruptcy route a lot of people stand to lose their homes and this isn't very good for the economy. If you are a homeowner, as long as you comply with the terms of the Trust Deed, then you would not lose your home.

The Trust Deed, once approved by your creditors, becomes what is known as a Protected Trust Deed. The Protected Trust Deed means that the creditors can't keep contacting you for payments and letters would stop. It also guarantees that no further interest will be added and any legal proceedings that may be being taken against you will stop. For a lot of people the Trust Deed is an excellent debt solution if they have little or no assets.

A Trust Deed is not a debt solution that should be considered by all, for example if you have multiple assets or equity, so it may be that other debt solutions are open to you. As an individual all people's circumstances are different so at Debt Support Service we will ensure the correct product is offered to you and more importantly, we will explain the reasons as to why the product is correct. Unlike something like a debt consolidation loan, a Trust Deed will not put you into any more debt. Many people are currently finding that banks and lenders are tightening their criteria and as such the availability of large consolidation loans are not as plentiful as they were a couple of years ago. This in turn forces an individuals hand to look for other options to sort out debt problems or debt concerns. A Trust deed is not a form of debt help that is open to everyone and a licensed insolvency practitioner has to administer the Trust Deed, at Debt Support Service we will ensure that the correct debt solution is offered to you and everything else is taken care of.

Like every debt solution there are advantages and disadvantages to a Trust Deed, all of which are explained to you by a fully qualified Trust Deed advisor who will guide you as to what the correct debt solution is, however the final choice is always down to you. At Debt Support Service, we will not employ any pressure tactics or heavy sales, the ins and outs will be explained to you and then you will be left to make a decision, our advisors are here to do just that, advise, not sell. If a Trust Deed is the correct form of debt help for you, then a named Trust Deed advisor will look after you from start to finish.