Frequently Asked Questions

Yes. Trust Deed Scotland as seen on STV and as heard on radio stations such as Radio Clyde, Capital Radio and Real Radio Scotland. We understand that there are some imitation websites but this is the official Trust Deed Scotland website.

In our experience no one has lost their house when entering a Trust Deed. Your recommended provider will establish whether or not you have any too much equity in your home as a part of their initial assessment. If you do have equity, then you will be given an option to buy any future equity from your Trust Deed provider. There are alternative solutions such as Debt Arrangement Schemes which may be more suitable should you have too much equity to make the Trust Deed viable. Your Trustee will establish this prior to signing.

When you enter into a Trust Deed you will not be allowed any form of additional credit. After your arrangement has been complete and you have been formerly discharged, you will find it more difficult to get obtain credit for at least three years after it's completion. You will need to rebuild your credit file and it is then up to you to rebuild your credit rating.

No is the answer. Your details will get published in the Edinburgh Gazette which is a publication that is not available in any newsagents or shops and is mainly used for creditors, transport and planning proposals or environment proposals and corporate notices.

They are Similar. The Trust Deed is the Scottish equivalent of an IVA in Scotland, and is only for residents of Scotland and usually lasts for three years, An IVA is for residents of England, Wales and Northern Ireland. A typical IVA would last for typically five years and have similar workings.

Only a licensed Insolvency Practitioner can set up and administer them.

Some insolvency companies do not offer home visits or will charge you for a survey. Some even charge you setup fees! We put you in contact with the best company suited to you.

Yes. We have a section specifically for this. Have a look at our Testimonials for our case studies and example.

No .It is a voluntary action which allows you to come to an agreement with your creditors to repay them less than you actually owe them. No credit checks are required and your offer of repayment is based on what you can actually afford to repay.

No. Since you will not be borrowing any money, there will be no need for a credit search.

Yes. Entering into a Trust Deed is not prohibited if you have court action against you.

Depending on the equity you have you may have to release equity in your home into the Trust Deed usually as part of the final settlement. However, there are mechanisms that can be put in place to protect your home such as "buy-back" or extra contributions.

No. It makes no difference whether you are a private tenant, homeowner, council tenant or if you are still living with your parents.

It is a private arrangement between you and your creditors. It is advisable, where possible to share this with your partner for your own peace of mind. You may need to check that you have no joint debts or that someone has acted as a guarantor on your behalf.

No. They can only cover your unsecured debts and arrears. This is usually things like credit cards, bank overdrafts, store cards and personal loans.

They do not cover student loans.

A secured debt is a debt secured against an asset that you own. Typical secured debts will be a mortgage, a secured loan, car HP etc. An unsecured loan is any loan not secured on an asset such as a bank overdraft, a personal loan, a credit card, store card etc.

Call us now on 0141 221 0999 if you have any queries about debt eligibility

No. Your creditors do not have to accept, but it will only fail if creditors representing over 33% of the total debt value object in writing within 5 weeks of receiving notice . Most creditors have their insolvency cases accounts handled by specialist agencies and your Trustee would not refer you for a Trust Deed if there was a great enough chance that it would fail. There are other Scottish debt solutions such as the debt arrangement scheme in the event that you are not eligible.

Yes, but it only matters if more than 33% of the total debt is rejected. Once the proposal has become a Protected ,all creditors are bound by law to accept the terms.

Yes. Once the Trust Deed has become protected (PTD), you are protected from all further recovery action by your unsecured creditors provided that you keep up the terms of the repayment.

This can vary, but it usually lasts for 3 years. It may be extended if you are a homeowner or if during the agreement for example, you fell pregnant and were unable to keep up repayment whilst on maternity leave – your trustee could extend the length of your agreement to reflect any period of reduced payment.

If you are unable to maintain repayments because of changed circumstances, your trustee can request a variation to reflect your new circumstances.

If you fail to keep to the arrangement, your trustee has the right to freeze your bank account and even to apply for you to be sequestrated.

The fees that the Trustee charge are collected from the payments you make into the 'pot' and you will normally have no other fees to pay.

Signing can take a few days, however It takes typically 5-6 weeks to get protected.

No but any such interest and charges will be included in the Trust Deed if it is approved and becomes protected.

You will have to come to an informal arrangement with you creditors to repay your debts or consider sequestration.

This means that no further action can be taken against you by your creditors for recovery of the money you owe them. Lenders accepted the proposal that your trustee has made to your creditors.

You can get an instant indication of whether you would qualify by completing the Trust Deed Calculator or our new Trust Deed Wizard.

You are entering into a contract to repay your debts, usually at a reduced rate. As such you agree to:

• Co-operate with the Trustee
• Pay the agreed monthly contribution
• Not take any further credit
• Advise the Trustee if you receive any unexpected windfalls in excess of £200.

Call us now on 0141 221 0999 and see if we can help. For a life after debt, try TrustDeedScotland.net

Trust Deeds were introduced in 1985 by the Government as an alternative to sequestration (bankruptcy) and are formal voluntary arrangements, using the Bankruptcy (Scotland) Act 1985.

They can only be administered by a licensed Insolvency Practitioner (IP) who will act as a Trustee and communicate/negotiate with your creditors acting on your behalf. You will pay an agreed amount over typically 36 months and after this time period ends you will be 'discharged' and your outstanding debts will be written off.

• You must be a Scottish resident and have lived in Scotland for a minimum of 6 months
• You must be struggling to repay your debts.
• Minimum debt level £10,000
• Only your unsecured debts, typically credit cards, Loans, Store Cards, Bank Overdrafts, (excluding student loans) Council Tax Arrears can be included.
• The minimum monthly repayment contribution is generally £150.

When a proposal is drafted, the experience and knowledge of the insolvency practitioner ensures that the vast majority (over 98%) are accepted. If the creditors still do not accept the proposal, then the trustee will still be able to negotiate your case to get it accepted.

Remember not all creditors need to agree to the repayment proposal and should the creditors to the value of 67% of the total debt agree to the proposal, the others are still legally bound by its terms regardless.