What Is a Scottish Trust Deed?
A Scottish Trust Deed is a formal, legally binding agreement that allows individuals in Scotland to repay or write off unaffordable debts over a set period. It helps people regain financial stability while protecting them from creditor action.
Debts That Can Be Included in a Scottish Trust Deed
Most unsecured debts can be added to a Trust Deed, including:
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Personal unsecured loans
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Credit card balances
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Store card debts
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Council tax arrears
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Payday loans
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Catalogue debts
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Bank overdrafts
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Credit union loans
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Mortgage shortfalls from a previous property
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Car finance shortfalls from a previous vehicle
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HMRC tax debts, including self-employed tax bills
Debts That Cannot Be Included
Some debts are not eligible and cannot be written off through a Trust Deed, including:
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Fines, penalties, compensation, and forfeiture orders imposed by any court
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Any liability arising from fraud
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Student loans
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Money owed to someone who holds a security on their property, such as a mortgage, secured loan, or hire purchase for a vehicle
Including Guarantor Loans in a Trust Deed
Guarantor loans can be included, but including them affects the guarantor. The guarantor becomes responsible for repaying the outstanding debt if it is included in your Scottish Trust Deed.
Ask us about Joint debts in a formal debt solution, and how those may affect you and the other party.
Frequently Asked Questions (FAQ)
Q: Can I include credit card debt in a Scottish Trust Deed?
A: Yes, most unsecured credit card debts can be included.
Q: Can a Trust Deed cover HMRC or self-employed tax debts?
A: Yes, HMRC debts can be included in a Scottish Trust Deed.
Q: Are student loans included in a Trust Deed?
A: No, student loans cannot be written off in a Trust Deed.
Q: What happens to a guarantor if I include a guarantor loan?
A: The guarantor becomes liable for repaying the debt if it is included in the Trust Deed.
Key Takeaways
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Most unsecured debts are eligible for inclusion.
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Fines, fraud-related liabilities, student loans, and secured debts cannot be included.
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Guarantor loans can be included, but affect the guarantor’s liability.