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Dan Reardon

I am a Debt Counsellor, licensed by the Financial Conduct Authority

Trust Deed Scotland

A Trust Deed is one of three very similar solutions. You should be certain that it is the right one for you before you proceed. You should be aware of how DAS and Sequestration work too. Get in touch with me via the widget and I can give a detailed explanation of each service as it would apply to you. You can then be sure that your specific circumstances have been taken into account. You can also contact me with any questions.

This is a summary of what I cover in the video:

Trust Deed Process:

  1. Insolvency Practitioner represents you as your Trustee
  2. They evidence your financial circumstances through documentation
  3. This is used as the basis of an offer of repayment to your creditors and duly sent to them (calculate yours here.)
  4. Your creditors have five weeks to respond
  5. Assuming the Trust Deed is accepted, you can no longer be pursued by your creditors
  6. You pay your Trustee your monthly payments
  7. Your financial situation is reviewed every six months and your payment adjusted accordingly
  8. 33% of any equity in your property must be paid into a Trust Deed
  9. Vehicles that exceed a certain value must be sold and replaced with cheaper alternatives
  10. Any remaining debts at the end of your Trust Deed are written off in full

Consequences of a Trust Deed:

  1. Detrimental impact on credit rating for at least six years
  2. Cannot obtain any credit at all whilst in a Trust Deed without the permission of your Trustee
  3. Potential employment consequences – check your employment contract
  4. Potential tenancy consequences – check your tenancy agreement
  5. Potential Hire Purchase consequences – check any HP agreements
  6. Potential consequences for failing to comply with your Trustee’s requests such as attachment of earnings, sequestration or sale of all assets.