Scottish Trust Deeds
- Have one, convenient monthly payment tailored to suit you
- Freeze your interest and charges (once Trust Deed is in place)
- Repay your unsecured debt in 3 years - in most cases
- Prevent legal action - including sequestration
Protected Trust Deeds for Scottish residents in debt
Using legislation that is designed to help Scottish residents repay unsecured debt, a Trust Deed acts as formal agreement between you and your creditors and, once protected, stops creditor demands. This enables you to repay your unsecured debts in single, tailored monthly payments over a fixed period (usually 36 months).
Subject to eligibility and acceptance. Calls may be recorded for training and monitoring.
Trust Deed FAQs:
- What is a Scottish Trust Deed?
-
A protected Trust Deed is a formal repayment agreement between a borrower and their lenders. It allows the borrower to repay a portion of their unsecured debt at a rate they can afford over a fixed period of time.
- How does the process work?
-
Talk to us and we'll assess whether a Trust Deed could be the right solution to your debt problems. If it seems like it's the right approach for you, you'll work with our specialists to draw up a proposed Trust Deed, a formal offering detailing what you could afford to pay your lenders.
Assuming your proposal isn't rejected, you'll simply make your monthly payments (which will be the amount left over from your income after you've paid all your living costs) until the Trust Deed comes to a successful conclusion.
- How much will it cost?
-
Your monthly payment will be based on your surplus income after allowing for your day-to-day living expenses. Your creditors will usually require that these payments are maintained for at least three years.
Further information can be found on our Key information & fees page.
- What will happen to my home?
-
If you own your home, your normal mortgage payments will continue as normal - a secured lender (such as your mortgage provider) is not bound by the Trust Deed. You will have to release any equity in your property at the end of your Trust Deed.
- Will my credit rating be affected?
-
Entering a debt solution will affect your credit rating in the short term and might affect it in the medium-to-long term. In the case of an IVA or Trust Deed, your credit rating will be affected for 6 years.
- Why would my creditors accept a Trust Deed?
-
A Trust Deed will normally give creditors a better outcome than they would get though an alternative such as bankruptcy (sequestration). It also lets them avoid the time and expense which would be involved in taking legal action.
Furthermore, creditors benefit from knowing that the Trust Deed is being administered by a qualified professional.
- What if I default on my monthly payment?
-
It is vital to make regular payments. In some circumstances, the period of the Trust Deed may be extended to allow any missed payments to be made up later on. If you fall behind through no fault of your own (e.g. through a change in employment), the trustee will re-assess the level of your monthly contribution and amend it appropriately.
If it seems you're simply not co-operating, the Trust Deed will probably be terminated, leaving you in a worse position. You could even face bankruptcy (sequestration).
Back to top
Expert advice from Debt Reducers
We are members of DEMSA whose code of conduct is approved by the Office of Fair Trading. Our advice is completely confidential.
Key information & fees
For more information on the fees involved with each debt solution, please click here.