A Trust Deed is a voluntary arrangement for Scottish residents that allows you to come to a legally binding arrangement with your creditors to repay part, or all of what you owe. We can assess if a Trust Deed is suitable for you as not everyone is eligible. For instance, you must be residing in Scotland for over 6 months and have regular household income.

It is important that you consider the features and benefits of a Trust Deed.

How you will benefit:

  • Lower monthly repayments to your creditors based upon what you can afford.
  • A fixed agreement usually lasting 4 years, after which any remaining unsecured debts could be written off depending on your circumstances.
  • Frozen interest and charges.
  • Full protection from your creditors ­ they cannot chase you for their debt.
  • Protection from legal action by creditors.
  • Protect your assets from creditors, such as your car or home.
  • A Trust Deed may be available as a debt solution if you live in Scotland or the Highlands and Islands.

Things to consider:

  • If you don’t stick to your agreed terms the trustee can apply for your Trust Deed to be brought to an end and your debt will be transferred back to you. You may then be at risk of bankruptcy.
  • There are restrictions to your expenditure we have to adhere to and if you have assets then you may be asked to make these available to your PTD e.g. savings plans.
  • If you are a homeowner you will be expected to release any positive equity for the benefit of your creditors.
  • A Trust Deed will appear on your credit file for up to 6 years. During this time it may be difficult for you to obtain credit and you may be subjected to higher rates of interest.
  • Creditors do not have to approve a Protected Trust Deed.
  • Any unsecured debts that were not included would remain outstanding.
  • A Trust Deed will be recorded and entered on to a public register.

It’s important to us that all customers make a fully informed decisions regarding their finances. If you have any questions please do not hesitate in calling us on 0800 088 2315 or 01525 201102.