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.
For more help and advice, contact the debt charity StepChange
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