Want to get Out of debt?

If you’re a Scottish resident and are struggling with growing debt that you can’t quite pay off, then a Trust Deed could be just what you need.

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How can a Scottish trust deed help you?

IVA alternatives for Scottish residents

  • Have one affordable monthly payment
  • Clear your debts without a loan
  • Reduce demands from your creditors

Scottish Trust Deeds

What is a trust deed and how can it help me?

A Trust Deed is a government approved debt solution available to Scottish residents. A Trust Deed is a voluntary arrangement to pay your unsecured debts which transfers your rights to your assets (things you own) to a trustee who will sell these to pay your creditors. In addition you will be required to pay monthly payments into your trust deed for a fixed period usually around four years.

There are two types of trust deed. The first is a protected one which means the majority of your creditors have agreed to its terms. A Protected Trust Deed prohibits creditors from taking any further action against you and they must freeze your debts. An unprotected or ordinary trust deed is one which a certain proportion of your creditors have objected to the terms of the deed. In an ordinary trust deed your creditors may still decide to pursue you for the money you owe and can still take legal action against you.

Pros & Cons of
Scottish Trust Deeds

Scottish Trust Deeds
Settle your debts for less

Pros

Clear your debts with one affordable monthly payment which is based on what you can afford

Write off all the debt you can't afford to repay

Prevent or stop legal action including sequestration

Debt-free after three years (in most cases)

Cons

Your credit rating will be affected for 6 years in total

Legal action can only be prevented if your Trust Deed becomes protected

Unless your mortgage company agrees to exclude your house from the trust deed it will be sold by the trustee to pay your debts

The Trust Deed Process

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Fill in your details for no obligation debt advice and consultation

Here at Money Expert we're committed to helping people escape the control that debt
can have over their lives through our trusted business partners. First and foremost, head on over
to our trust deed application page and fill in the short form.

More About Scottish Trust Deeds

How do i apply?

To find out more with no obligation simply complete the quick online form and talk with a debt specialist in minutes for free advice on how to manage your debt today. By completing this request you are under no obligation to enter into a Trust Deed and the debt specialist may recommend other options to you.

Alternatively you can call free on 0800 298 0033 for a confidential chat one of our advisors about what's right for you.

Is a Trust Deed right for me?

A Trust Deed is a form of insolvency which if you qualify for it may be a preferable option to sequestration (bankruptcy). This is because you may have the option to keep your house if your mortgage provider agrees you can keep this out of the deed.

However since this is a form of insolvency it will affect your credit rating and may also prohibit you from entering certain professions or from keeping an existing job in certain sectors of the market. You will also be placed on the Trust Deed Register and this will be advertised in the Edinburgh Gazette.

What are the fees for entering into a Trust Deed and what are these for?

There are no set up fees when you apply for a Trust Deed through Money Expert. Immediate Financial will prepare a financial statement, gather information from your creditors, provide a courier to pick up your documents and prepare your file to submit to our trusted business partner, our approved Trust Deed company. Should the Trust Deed proposal fail or fail to become protected then we would look into other options for you.

There will also be ongoing charges when your Trust Deed is in place, which are paid as a proportion of your monthly payment into the Trust Deed. These are not additional payments but are for the Trustee for the day to day running of the plan.

What are the requirements for entering a Trust Deed

You must be a Scottish Resident. You should have minimum debt of £5000 owed to two or more creditors. In addition you should have disposable income of around £170 per month or £40 per week.

Frequently Asked Questions

  • Can I sign a trust deed if I am a director of a company?

    You should note that if you are a director of a company you will not be allowed to sign a Trust Deed. There are also some professions such as in the financial services or armed services where signing a Trust Deed could affect your job. You should refer to your terms of employment or speak to your employer prior to considering this option.

  • Will I keep my car?

    This will depend on the value of your vehicle and whether it is required for travelling to work on a regular basis. If you have a high value car the trustee may order you to sell it and downsize to a more economic model or to use alternative transport.

  • What debt can I include in a trust deed?

    Any unsecured personal debt can be included. However you may not include debts to family members. Examples on personal unsecured debts would be credit cards, pay day loans, personal loans and overdrafts.

  • I have a hire purchase debt for my car, can I include it?

    Hire purchase debts can’t be included in a Trust Deed unless the item the loan was secured on has been returned or seized and you only have a shortfall left to pay. Similarly a mortgage shortfall, where you have lost your property but still owe part of the mortgage can be included.

  • What if my circumstances change?

    If your circumstances change you must inform the Trustee immediately so they can decide if the Trust Deed can continue at the level of payment you are now able to make. If you are fired or if you get a pay rise you must inform the Trustee and the payments you make will need to change accordingly. If you fail to make the agreed payments you run the risk of the Trust Deed failing.

  • Do all of my possessions need to be sold?

    No you are allowed to keep certain items such as household appliances and children’s toys. Other items are at the discretion of the Trustee. In general the idea is for you to have a manageable standard of living. Similarly your house can be excluded from the trust deed if your mortgage company agrees.

  • I have a debt where diligence has already been taken against me. Can I include it?

    This is up to the creditor. A lot of the time they will not permit you to include this. In the case of Council Tax which has gone to a Sheriff they may stop the diligence and allow you to include it.

  • Apart from secured debts, are there any others that I can't include?

    Yes you are not permitted to include fines, debts to family members or any item pertaining to fraud such as benefit overpayments. This list is not exhaustive and our advisors are best placed to look at your debts and advise which ones can go in.

Debt Guides

Debt is a problem that most of us will find ourselves facing at least once in our lives.

But don't worry, with our comprehensive section of guides on debt solutions, you'll be able to find all of the information you need to get debt free right away

Bankruptcy

Bankruptcy Alternatives

Debt management Plans

The cost of DMPs

IVAs and Insolvency practitioners