Trust Deeds

Applicable for residents of Scotland

Designed for residents of Scotland who can no longer afford to pay their unsecured debts, a Trust Deed is a legally binding agreement between an individual and those that they owe money to. The Trust Deed must be administered by an Insolvency Practitioner (known as the 'Trustee')

A Trust Deed allows you to pay as much of your debts as you can afford. A Trust Deed is usually paid over three years and will take into account your monthly income and essential expenditure (including living costs and the repayments of secured debts), so you will only pay what you can realistically afford.

As part of a Trust Deed, the Trustee will put together a proposal showing what you can afford to repay towards your debts and will present this to your creditors. If your creditors accept the proposal, the Trust Deed can be registered as protected. Once a Trust Deed is protected, it will be legally binding and your creditors will not be able to pursue you for further payment of your debts, only what they have agreed to in the proposal. Throughout the duration of a protected Trust Deed, any interest and charges will be frozen.
Upon successful completion of your Trust Deed, the remainder of your debts will be written off.