Scottish Trust Deed

Trust Deed Scotland help thousands of people every year and is the largest in Scotland for advice on Scottish debt solutions. We have full membership of the Debt Resolution Forum (DRF) and specialise in providing free, confidential debt advice with no hidden charges

What is a Scottish trust deed

A Scottish trust deed is designed to help people in debt in Scotland. If you’re in serious debt, the experts at Trust Deed Scotland can advise you on the best possible route out of your difficulty.

Trust deeds are for people with unsecured debts, such as credit card debit or personal loan debt, and work in a similar way to individual voluntary arrangements in England and Wales. A protected trust deed is the name given to a trust deed once your creditors have agreed to the arrangement. It means they cannot chase you for the money and cannot take court action against you to recover the debt.

You can apply for a protected trust deed if:

You’re a Scottish resident.

You owe at least £5,000 in debt.

You have an income or someone will to act as a third-party.

How does a trust deed work?

  • Speak to us – we’ll give you expert debt advice and help you work out the best option for you
  • We then refer you to an insolvency practitioner – this practitioner becomes the ‘trustee’ and will deal with your creditors for you.
  • Interest on your debts is frozen.
  • You agree to make one affordable monthly payment on your debt over a maximum 4-year period.
  • After this period, any remaining debt is written-off.
  • You are then debt-free.

Advantages of a trust deed

  • Be debt free in typically 48 months.
  • 98% creditor acceptance rate.
  • Only pay back what you can afford.
  • In almost all cases, stay in your home and keep your car.
  • Include all your eligible unsecured debt into the trust deed.
  • Creditors cannot take legal action once your trust deed is protected.

Disadvantages of a trust deed

  • You will not be allowed further credit for the duration of the Trust Deed term.
  • Your credit rating will be affected for 6 years in total.
  • Risk of sequestration if the trust deed fails.
  • Certain occupations may need prior approval.

Here’s an example of what we can do

See how a Trust Deed could help you with this simple example. Using the trust deed we consolidate all the debts into one smaller monthly payment which allows you to get back on track

Unsecured
debts

Trust Deed Scotland

Personal Loan

£2,000

Trust Deed Scotland

Credit Card

£6,000

Trust Deed Scotland

Store Cards

£1,600

Trust Deed Scotland

Council Tax

£1,200

Total Debt £20,800

Trust Deed Scotland

Your monthly repayments

Old
£636

New
£175

Debt
written off

60%

* Subject to creditor acceptance * Payment subject to individual circumstances * Credit rating may be affected

Frequently Asked Questions

Got a question? Maybe we have an answer for you here . . .

Your contribution is based on the disposable income remaining once your living costs have been deducted from your income. Most people are much more comfortable once they enter a Trust Deed as they will be making one affordable monthly payment instead of higher, separate payments to their creditors. Try the Trust Deed Wizard for an indication of how much you could expect to pay monthly in your Trust Deed.

Scottish residents with £5000 or more unsecured debt may be eligible for a Trust Deed.

You can qualify as a homeowner, private tenant, council tenant or if you live with your parents. If you own your home, your advisor will explain the process of protecting your house during the initial assessment. Try the Trust Deed Wizard to find out how a trust deed could help you get on top of your finances.

Over 98% of Trust Deed proposals are accepted. If a creditor wanted to object, it would do so in writing within five weeks of your Trust Deed being proposed. Even then, it would only fail if that creditor represented over 33% in the total debt value or over one half in number. If the creditors to the value of 67% of the total debt agree to the proposal, then the other creditors will still be legally bound by its terms, even if they object. In the unlikely even your Trust Deed did fail, the trustee would negotiate your case in an attempt to have it accepted and you will also be advised on other Scottish debt solutions such as the Debt Arrangement Scheme (DAS) and sequestration.

Put your details on the website or call in to the office and arrange a free meeting with one of our qualified debt advisors. They will talk you through your options and help you make an informed decision on the debt solution best for your needs. Your advisor will provide you with a checklist of any additional information required and once we receive it we can begin drafting your case. Your advisor will arrange a meeting with you to finalise the paperwork, return any original documents you gave to us and answer any final questions. Your adviser will also help you set up your first Trust Deed payment at this stage and then you can stop any current payments to your creditors. Try the Trust Deed Wizard to see how a Trust Deed could help you become debt free.

Find out more

Contact an expert money advisor at Trust Deed Scotland to find out more about the debt solutions available to you. We are here to help you decide the best course of action to suit your individual needs and support you every step of the way. If you would like a fresh start, get in touch today.

Trust Deed Scotland 0141 221 0999

Further Information

We provide a wide and varied advice to our clients. Below is some related categories.

Blog

Trust Deed Scotland

How a Trust Deed affects your Credit Rating

Our Debt Guide

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