Trust Deeds were designed to help people struggling with their unsecured debts. Once agreed, all interest will be frozen on your debts and you will make one affordable monthly payment, based on your disposable income. Once distributed, this payment will be used to pay off a proportion of your debt. Once your trust deed term is finished, any remaining debt will be written off and you will be debt free!
Frequently Asked Questions Common questions that you may have
You can apply for a trust deed if you are resident in Scotland and have been for a minimum of six months, have over £5 000 debt and have an income or someone willing to act as third party.
The time taken to set up a trust deed varies, depending on individual circumstances. The more evidence of your debts, income and expenditure you can provide at your first meeting, the quicker the process will be.
No, interest and charges will not be frozen while your trust deed is being set up but any additional interest and costs accrued will be added to the trust deed, so you will not need to speak to your creditors about them once your trust deed is protected.
Creditors have agreed to the proposal and can no longer contact you using any method of communication or start any legal proceedings against you to recover your debt.
Once protected, your wage arrestment will be removed and you will make the agreed monthly contribution.
No, your property will be assessed before the trust deed is in place and as long as you adhere to the terms of the trust deed, your home will be protected.
No, a trust deed is not a form of loan. You are simply paying back a percentage of your debt. Any debt left after your agreed term will be cleared.
Trust Deed Scotland never charge any setup fees but there are other companies who do.
The minimum term is 48 months but if you have any high value assets, the term could be longer.
Monthly repayments vary depending on individual circumstances, level of debt, who your creditors are and your income and expenditure. Necessary living costs are factored into your budget to ensure you can cover your monthly payment and have enough left over to live modestly, yet, comfortably.
No, they won’t but they will go on the Account in Bankruptcy (AIB) register. Your details will be removed from the register 2 years after you are discharged from the trust deed.
It is not necessary to perform a credit check when you apply for a trust deed.
It will cover any unsecured debts, (subject to verification), excluding student loans.
No, you don’t have to tell anyone if you don’t want to. It’s entirely up to you. We are very discreet and will not disclose any information to anyone out with the trust deed process regarding your situation.
98% of trust deed proposals are accepted. If yours isn’t we can negotiate with your creditors and try to come to an arrangement. If an agreement cannot be reached, we can look at other options with you and help you find the best solution for you to get out of debt.
If you cannot pay due to extenuating circumstances such as losing your job or unforeseen issues, a payment holiday can be arranged. However, if you stop paying your agreed contribution without valid reason, your trustee can discharge themselves from your trust deed or request a wage arrestment.
Once the final paperwork has been formalised, the creditors have 5 weeks to accept the proposal. During this time you may have creditors contacting you. Don’t worry, this is normal. Simply inform them you have entered into a trust deed and once the trust deed is protected, they will no longer be allowed to contact you. They may ask for your trust deed reference number to be passed on to them. You will receive this when your trust deed becomes protected.
We advise you to make minimal payments to creditors if you can afford to. This will help alleviate any pressure your creditors may put on you before your trust deed is protected.
If you have debt with your current bank, it is likely that you will need to open up a new bank account with a different bank. This is easy to do and can be set up as soon as the application process has begun.
Your credit rating will be affected but remember, if you have missed any payments to your creditors or you have too much debt, your credit may have already suffered. Once you have been discharged from the trust deed you can rebuild your credit and improve your score.
You can still apply for a trust deed. All you have to do is provide accounts, invoices and evidence of income.
You will be debt free, (typically within four years) and can rebuild your credit score with a clean slate. You will no longer need to feel the worry that comes with having multiple creditors chasing your for debt and constantly adding interest to what you owe. You can go on to get mortgages and credit cards in the future and start to plan for your financial future.
The overall acceptance rate is over 98% , we will discuss your proposal before you sign the trust deed.
Yes, you can enter a trust deed if there is court action against you.
Secured debt is attached to an asset like a property or a vehicle, (e.g. a mortgage or secured loan). Unsecured debt is not attached to an asset, (e.g. credit cards, council tax arrears and catalogue debts).
There are periodical reviews but any changes in circumstance can also be addressed at the time. If there are any changes to your financial circumstances, you should immediately inform your trustee.
Student loans cannot be included in trust deeds but all other unsecured debts can be considered.
Yes, we advise you read lots of reviews in order to help you make up your mind. Follow the link to Trustpilot to see independently verified reviews from our customers.
In most professions, it is not necessary to inform anyone you are entering a trust deed. However, some roles may prohibit you or require clearance from your employer. We advise you to check your contract for your terms of employment if you are unsure before entering a trust deed. If you are unsure if this applies to you, our advisors can help assist you.
Yes you will still be liable to pay all priority debts i.e. gas, electricity, rent, mortgage, council tax etc. during the term of your trust deed. Your outgoings/expenditure will be taken into consideration when agreeing the terms of your Trust Deed.
Yes, your credit rating will be affected but remember it will already have been negatively affected if you have missed any payments to your creditors. Once your Trust Deed term has finished, you are free to rebuild your credit rating.
Put your details on the website or call in to the office and arrange a free meeting with one of our qualified debt advisors. They will talk you through your options and help you make an informed decision on the debt solution best for your needs. Your advisor will provide you with a checklist of any additional information required and once we receive it we can begin drafting your case. Your advisor will arrange a meeting with you to finalise the paperwork, return any original documents you gave to us and answer any final questions.
Your adviser will also help you set up your first trust deed payment at this stage and then you can stop any current payments to your creditors. Try the Trust Deed Wizard to see how a trust deed could help you become debt free.
Over 98% of Trust Deed proposals are accepted. If a creditor wanted to object, it would do so in writing within five weeks of your Trust Deed being proposed. Even then, it would only fail if that creditor represented over 33% in the total debt value or over one half in number. If the creditors to the value of 67% of the total debt agree to the proposal, then the other creditors will still be legally bound by its terms, even if they object. In the unlikely even your Trust Deed did fail, the trustee would negotiate your case in an attempt to have it accepted and you will also be advised on other Scottish debt solutions such as the Debt Arrangement Scheme (DAS) and sequestration.
You can qualify as a homeowner, private tenant, council tenant or if you live with your parents. If you own your home, your advisor will explain the process of protecting your house during the initial assessment. Try the Trust Deed Wizard to find out how a trust deed could help you get on top of your finances.
Scottish residents with £5000 or more unsecured debt may be eligible for a Trust Deed.
Your contribution is based on the disposable income remaining once your living costs have been deducted from your income. Most people are much more comfortable once they enter a Trust Deed as they will be making one affordable monthly payment instead of higher, separate payments to their creditors. Try the Trust Deed Wizard for an indication of how much you could expect to pay monthly in your Trust Deed.