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A Trust Deed is a debt solution that can be used in Scotland to make affordable repayments over four years and potentially write off some of your debt.
A Trust Deed is a formal debt solution set up by an insolvency practitioner on your behalf. It commits you to make more affordable monthly repayments for four years. After this time, any remaining unsecured debt is written off. A Trust Deed is not identical to an IVA, but there are some similarities between these legally binding debt solutions.
- Your debt repayments should become more affordable based on your circumstances and debts may be written off after the four-year period
- After your Trust Deed is set up, creditors can no longer contact you or add further interest and charges to your debt
- You can often keep one essential vehicle worth < £3,000
- You do not have to appear in court as part of the application process
- The insolvency practitioner charges you for their service throughout the four years. This is taken from your single monthly payments
- Trust Deeds can affect your right to work in some professions
- Not sticking to the terms of your Trust Deed can lead to bankruptcy
- Trust Deeds will negatively affect your credit report
More information on Trust Deeds
There is a lot to learn about Trust Deeds before engaging with a debt adviser or insolvency practitioner. You can uncover important details about using a Trust Deed to get out of debt here at MoneyNerd. Check out our articles and friendly guides, written to make understanding Trust Deeds easy.
- Trust Deed Calculator 2022 – What does it do?
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- What Is the Difference Between a Trust Deed and Bankruptcy?
- Failed Trust Deed – What You Can Do, FAQs & Tips
- Trust Deed Rules – What You Need To Know 2022
- Trust Deed Online – Everything You Need to Know
- All Inclusive Trust Deed – Complete Guide & FAQs
- Is a Trust Deed an IVA? All You Need to Know, FAQs & More
- Trust Deeds Disadvantages – All You Need to Know
- Will a Trust Deed Affect My Partner? 2022 Laws
- How Much Debt Do I Need to Enter into a Trust Deed?
- Trust Deed Guarantor – Complete Overview, Tips, FAQs & More
- What is a Trust Deed? Complete Guide 2022
- How Long Does a Trust Deed Last? Quick Answer 2022 Rules
- How Long Trust Deed Stay on Your Credit File? Get Removed
- Protected Trust Deed – Complete Guide & FAQs
- Trust Deed Amendment – All You Need To Know 2022
- Trust Deed Criteria – All You Need to Know, FAQs & Tips
- Is a Trust Deed a Good Idea? All You Need to Know & FAQs
- Sell Your House Whilst in Trust Deed? UK Property Laws