Trust Deed FAQs

What are the Advantages to having a Trust Deed?

A Trust Deed can often be a much better and cheaper option then sequestration.

Once in this agreement you should not have to worry about being contacted by the creditors involved and they will not be able to take legal action.

A Trust Deed will have no effect on your job or career unlike sequestration.

The Trust Deed has a set term till completion (normally 36 months) and at the end of the turn, you will be totally debt free.

What are the Disadvantages to having a Trust Deed?

Your property, equity or assets may be at risk, our debt advisors will run through this with you.

Your credit rating will be affected, as it would be with any other debt management program.

If you miss any payment, unless you have a change in circumstances your Trust Deed may fail and your creditors may look at sequestration as another option.

How long does a Trust Deed last for?

A Trust Deed has a normal time period of 36 months but, this may change depending on your financial situation

Call the debt solutions helpline on: 0845 519 6093

What creditors can be included in a Trust Deed?

Typically all unsecured debts such as money owed to finance companies, banks, store cards, credit cards, Inland Revenue, HM Customs & Excise (VAT), Council Tax and loans made for your family. A Trust Deed will not include the following debts: mortgages, hire purchases, debt incurred through fraud, student loans, fines, maintenance and child support arrears.

Can I lose my house with a Trust Deed?

No, but you will be asked to try and release any equity from your property , if you can release any equity then that equity will be paid into your Trust Deed.

What are the differences between a Trust Deed and IVA?

A Trust Deed is the Scottish equivalent to an Individual Voluntary Arrangement (IVA).

Will I need to tell my partner about a Trust Deed?

You would only need to tell your partner if you have joint debts, although it is often suggested that you advise those closest to you.

Will I have to close my business?

No, you can keep the business running on a Trust Deed and unlike sequestration (bankruptcy) you can act as a company director

Will my creditors agree to my Trust Deed?

In most cases, a Trust Deed will be a more favourable solution to your creditors. It allows them to recoup some of your debts whereas with bankruptcy they may receive significantly less or will have great difficulty collecting their money.

Can one creditor refuse to accept the Trust Deed?

Yes, but that does not mean that the Trust Deed has failed it will only fail, if the creditor makes up a third or more of the total value of your debt. If that creditor accounts for less than one third then they will be bound by the terms of the PTD proposal.

Is a Trust Deed the same as sequestration?

No, the court governs them both and they are both legal processes for people facing insolvency but a PTD is considered to be less formal.

Can I cancel a Trust Deed?

No, both you and your creditors have to accept the rules and regulations surrounding a Trust Deed.

What happens if I am not approved for a Trust Deed?

It is not the end of the world, there are other debt solutions available such as debt management or debt consolidation.

What if I have a financial windfall or lose my job whilst on a Trust Deed ?

You must contact your Insolvency Practitioner (IP) and update him on your financial situation and he/she will advise you accordingly

How long does it take to set up?

The process to set up a Trust Deed is normally 6/8 weeks, but that all depends upon the information you provide and the time scale you provide it.

Can debt solutions help me get out of debt?

YES we can. Everyone’s personal situation is different and each debt solution is different so we need to work out which will best suit your financial needs.

We will complete a FREE 20 minute fact find with you to work out what your earning and spending and this will let us know how much you can afford to pay to your creditors and also which debt solution is best for you to help you get out of debt. You are under no obligation but I am sure you will be 100% happy with what out debt advisors can do for you and we have the lowest debt managenent fees in the industy

We pride ourselves in our friendly, professional approach to finding the right debt solution for every one of our clients, which is honest, confidential and always the ‘best advice’ based on your individual circumstances.

If you would like to speak to one of our friendly, professional debt experts about any of our debt solutions you can either call our debt solutions helpline on: 0845 159 6093 or complete our online contact form and one of our debt advisors will call you back within the hour.

Start you debt free life today! with one of our debt solutions.

Debt Management | Individual Voluntary Arrangement | Protected Trust Deed | Bankruptcy

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