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Trust Deed Amendment – All You Need To Know

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Scott
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Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

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&
Janine
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Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Feb 6th, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Featured in...
Trust Deed Amendment

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you looking for answers about trust deed changes? Do you want to understand how to make changes to your trust deed? You’re in the right place. 

We know that being in debt can be a worry, and people often have questions about trust deeds. In fact, more than 170,000 people visit our website each month seeking advice on debt solutions.

In this simple guide, we’ll explain:

  •  What a trust deed is
  •  What it means to change a trust deed
  •  How to change your trust deed if your money situation changes
  •  The benefits of a trust deed if your income goes up
  •  Other ways to handle debt in Scotland

We understand how hard it can be to deal with debt. With our experience, we’re here to help you understand your options and find a way forward.

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

What does a trust deed amendment mean?

An amendment refers to the idea of making changes to your trust deed agreement.

This is when your trustee sends a proposal to your creditors. If your creditors agree, your trustee may change the terms of your agreement.

Someone may wish to make an amendment to their trust deed for a number of different financial changes, including:

  • Your income may increase/decrease.
  • Your allowed benefits may increase/decrease.
  • You may receive an unexpected lump sum/inheritance.

What type of amendments can I make to my trust deed?

You could be allowed to make trust amendments, only if your creditors agree

These amendments could include:

  • Increase in monthly payments in case you want to pay off your debt early.
  • Decrease in monthly payments if your financial situation has worsened. 
  • Changes in the case that you have received a bonus, lottery, or a windfall.
  • In case you are unable to make payments to your third parties. You could be allowed time redemption. 
  • If you want your trust deed to become protected

Your trustee could send written documents to your third party to review the terms of your agreement. 

Can I make amendments if my financial situation worsens?

Your amendment may take place if your income has decreased, as this forum user has experienced:

Your trustees will evaluate your financial situation and provide instructions in accordance with the problem. 

A document containing your trust amendment clause could be sent to your creditors; if your creditors agree, your monthly payments could be reduced.

Moreover, you could also get a redemption from your payments.

In case you are made redundant, your trustee could be able to vary the terms of your deed in your favour. 

However, if you voluntarily apply for redundancy, it could create complications for you. In this case, legal decisions could be taken against you. Moreover, you could be deprived of your own assets.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

Can my amendment deed change if I receive a windfall?

This depends on the amount of money you have received. 

In the case that it is greater than the amount of money you owe to your creditors, it could be used to cover your debt payment. This way, you could be discharged from your deed earlier than expected.  

How will my trustee help with my amendments?

Your trustee plays a vital role in your deed agreement, and they are tasked with three essential jobs when it comes to amendments: 

  1. Advise you about your amendment clause:

This means your trustee will help you understand how the changes in your deed will impact you.  Moreover, your trustee will ensure that you are satisfied with the agreed terms.

  1. Act as your Nominee:

After your budgets have been approved, your trustee will convey the terms to your creditors. Your trustee will ensure that a mutual agreement is agreed upon. Moreover, your trustee will inform all third parties about the changes made.

  1. Supervise your amendment clause:

Your trustee will ensure all payments are made according to the changes. Further, they will remind you if you have missed any payments.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

Natasha

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

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Reviews shown are for The Debt Advice Service.

Trust Deed Amendment Checklist:

Making an amendment to your trust deed can seem difficult and all-consuming. If you are thinking of amending the deed because of recent financial changes in your life, you will first need to:

  • Gather the necessary documents ahead of time so they can be passed on to the trustee as soon as possible.
  • Consult a financial professional to understand your rights within the trust deed and whether the amendment seems feasible.
  • Make an effort to understand your own financial health. It is useful to check where you’re at financially once a month, including how much debt you have left, how much your essential living is costing, and whether the trust deed is still appropriate for your level of income.

Frequently Asked Questions (FAQs)

How will applying for bankruptcy help?
Applying for a bankruptcy could help you eliminate any type of unsecured debt. Moreover, you could be able to increase your credit score in the future.
Who do I contact for a trust deed advice?
If you are already in a trust deed, I would advise your speak to your trustee about your amendment clause. However, you could reach out to a trust deed adviser for free consultations.
Can I come out of a trust deed?
Since a trust deed is a legal agreement, you could come out of it after you have received your letter of discharge. Otherwise, it could result in the creditors taking legal actions against you. This could result in the debtor losing their assets.
Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.