A Trust Deed is one of the debt management solutions available if you are living in Scotland. It is a formal agreement with your unsecured creditors to settle your debt over a fixed period of normally 4 years (although this period could be extended in certain circumstances).
If you are struggling to pay the debt that you owe, a Trust Deed allows you to reduce all of the payments to your unsecured creditors and combine them into a single affordable amount. At the end of the agreement your creditors write off any debt that is still outstanding leaving you debt free.
Once it is protected the Trust Deed is a formal legally binding agreement where your creditors are not allowed to add further interest or charges to your debts. They are also prevented from taking further action against you such as wage arrestment, charging orders against your property or a petition for your bankruptcy.
There is no minimum level of debt required before you can start a Trust Deed however generally speaking you will need to have unsecured debts of at least £5,000. Anything less than this and you are probably better off considering a Debt Arrangement Scheme or Sequestration. You should also be able to pay at least £100 per month towards your debt.
If you would like help or advice about a Debt Management Plan please give us a call on 0800 088 7376 or complete the form below to speak to one of our experts
As well as the information found on this website the Accountant in Bankruptcy (the Scottish Government’s Insolvency Service) has also produced two guides to personal debt solutions which you may also find useful: Debtor’s Guide and Debt and the Consequences.
The Money Advice Service (MAS) are an independent service set up by the Government to provide people with free advice about all aspects of personal finances. For help from MAS if you are struggling with debt please follow this link: MAS – Help if you are struggling with debt.
It is also recommended that you read this one page document produced by MAS entitled “Dealing with debt – 5 things you should know”.
More information about the Trust Deed solution is available in the left hand column. However only a brief overview is given here. For more details and advice please see one of our dedicated informationwebsites:
Wilmott Turner is able to advise you on whether or not a Trust Deed is right for you. However we do not currently offer a service to help you implement this debt solution.
If you decide that you want to apply for a Trust Deed you will need to speak to an Insolvency Practitioner (IP) in Scotland. We will offer you suggestions about how to find an appropriate IP but we are currently unable to give you a specific recommendation.
If you have completed your Trust Deed you can now claim for mis sold PPI if you have not already done so. You can make the claims yourself if you wish. However you need to be aware that the banks may try to resist paying you the compensation you are due. To help you overcome these problems and get the money you are owed we offer a specialist claims service. For more information see: Help with claiming for PPI after a Trust Deed